Advance Loan Agreement
This Loan Agreement (the "Agreement") is made and entered into on this 5th day of December 2050, by and between:
Lender:
Name: [Your Company Name]
Address: [Your Company Address]
Represented by: [Your Name], CEO
Borrower:
Name: Tech Innovations Inc.
Address: 456 Innovation Blvd, San Francisco, CA 94105
Represented by: Alice M. Thompson, CEO
1. Loan Amount and Disbursement
The Lender agrees to provide the Borrower an advance loan of $500,000 (Five Hundred Thousand Dollars) to expand the Borrower's new product line and increase market outreach. The loan will be disbursed in two equal installments of $250,000 each, on the following dates:
2. Interest Rate
The loan will bear an interest rate of 5% per annum, compounded annually, beginning from the disbursement of the first installment.
3. Repayment Terms
The Borrower agrees to repay the loan in equal quarterly installments over 5 years. The first payment will be due on 15th January 2052. Each quarterly installment will be $28,500, which includes both principal and interest.
The final payment will be made on 15th January 2056, at which point the loan will be fully paid off.
4. Early Repayment
The Borrower may repay the entire loan or any portion of the loan earlier than the due dates without incurring any penalty. If the Borrower chooses to repay the loan early, the interest will be recalculated on the amount outstanding at the time of the early payment.
5. Default and Late Payments
In the event that the Borrower fails to make a payment within 30 days of the due date, the Lender has the right to charge a penalty of $1,000 or 5% of the overdue amount, whichever is greater. If the Borrower fails to make payments for more than 90 days, the entire loan balance shall become due and payable immediately.
6. Collateral
To secure the loan, the Borrower agrees to pledge the following assets as collateral:
Intellectual Property: The Borrower's patents related to the new product line.
Real Estate: The commercial property is located at 456 Innovation Blvd, San Francisco, CA.
7. Warranties and Representations
The Borrower warrants that:
All information provided to the Lender in this Agreement is accurate and truthful.
The Borrower has the legal right to enter into this Agreement.
The Borrower will use the loan exclusively for the purposes stated above.
8. Governing Law
This Agreement shall be governed by and construed by the laws of the State of California.
9. Amendments
Any amendments to this Agreement must be made in writing and signed by both parties.
10. Signatures
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[Your Name], CEO
[Your Company Name]
[Date]
Alice M. Thompson, CEO
[Date]
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