Loan Agreement
This Loan Agreement (the “Agreement”) is entered into this day [Date] by [Name of Lender], of [Address], (the “Lender”) and [Name of Borrower], of [Address], (the “Borrower”).
WHEREAS:
A. The Borrower has requested a loan of [Amount] (the Loan) from the Lender, which the Lender is willing to provide;
B. The Lender and Borrower have agreed to enter into this Agreement to set out the terms of the Loan and the repayment thereof.
NOW THEREFORE THE PARTIES HEREBY AGREE AS FOLLOWS:
1. Definitions
In this Agreement, the following terms shall have the following meanings:
a. “Loan” means the loan of [Amount] provided by the Lender to the Borrower.
b. “Interest” shall mean the customary interest rate applied to a loan agreement of this type, which shall be [Interest Rate] percent (%).
2. Loan
2.1 The Loan shall be advanced to the Borrower on or upon [Date] and shall be payable in full on or after [Payment Date], subject to the conditions set out herein.
2.2 The Loan shall be provided in a lump sum and shall bear Interest at the rate stated herein.
2.3 Interest shall accrue on the outstanding amount:
a. on the same day of each month; and
b. on the monthly anniversary of the date the Loan was advanced.
3. Repayments
3.1 The Borrower shall make a repayment of the principal plus accrued interest on the payment date stated herein.
3.2 The Borrower shall make all payments due without the need to be requested by the Lender in writing or otherwise.
3.3 All payments shall be made to the Lender’s bank account account numbered [Account Number] held at [Bank], as provided by the Lender to the Borrower.
4. Late Payments
4.1 If the Borrower is unable to make a payment within [Days] of the due date, or any subsequent payment due date, the Borrower shall be liable for a late payment penalty of [Penalty].
5. Strict Liability
5.1 In the event that the Borrower defaults on their payment obligations herein, the Lender shall be entitled to take all necessary legal and other action to enforce the same without the need for any further notice to the Borrower.
6. Non-Recourse
6.1 The Borrower will not, under any circumstances, be liable for any amounts over and above the Loan principal and earnings of interest thereon.
7. Warranties
7.1 Each Party hereby warrants to the other that:
a. all statements, representations, warranties and undertakings in this Agreement are true, accurate and not misleading and not higher than the Lender is willing to accept;
b. all documents and documents annexed to this Agreement are accurate, up-to-date and not misleading;
c. their respective rights to enter into the Agreement are not impaired in any way by any other agreement or otherwise;
d. this Agreement is and shall be binding on and enforceable against each Party in accordance with its terms;
e. they have the power and authority, and the right and legal title, to enter into and perform, their respective obligations under this Agreement.
8. Notices
8.1 Any notice or communication relating to this Agreement may be delivered personally, by letter, fax or email to the address of each party hereto, as stated herein and as each party hereto may from time to time designate in writing.
9. Severability
9.1 In the event that any one or more of the provisions of this Agreement are held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.
10. Waiver
10.1 No clause or provision of this Agreement shall be deemed to have been waived and no breach excused, unless such waiver or consent to such breach is provided in writing and signed by the affected party.
11. Modification and Variations
11.1 No amendment, modification or variation of this Agreement shall be effective unless it is in writing and signed by both Parties.
12. Governing Law
12.1 This Agreement shall be governed by and construed in accordance with the laws of [Country] and the parties agree to submit to the exclusive jurisdiction of the courts of [Country].
13. Entire Agreement
13.1 This Agreement contains the entire agreement and understanding of the parties respecting the subject matter herein and supersedes all prior negotiations, representations and understandings, whether oral or written.
In WITNESS WHEREOF the parties have entered into this Agreement.
SIGNED by the parties as follows:
Lender
[Name], [Title]
Borrower
[Name], [Title]
