Business
Loan agreement
Used 498 times
The Loan Agreement template outlines the terms and conditions of a loan between a Lender and Borrower. It covers important details including loan amount, interest rate, repayment terms, prepayment options, and security. The template also includes representations and warranties of the Borrower, events of default, remedies available to the Lender, governing law, and serves as the entire agreement between the parties.
Use Template
This Loan Agreement (the “Agreement”) is made and entered into on [date] by and between [Name of Lender], a [State] corporation with its principal place of business at [address] (“Lender”), and [Name of Borrower], a [State] corporation with its principal place of business at [address] (“Borrower”).
 
WHEREAS, Lender is willing to lend money to Borrower, and Borrower is willing to borrow money from Lender, on the terms and conditions set forth herein.
 
NOW, THEREFORE, in consideration of the promises and covenants contained herein, the parties hereto agree as follows:
 
1. Loan Amount. Lender agrees to lend to Borrower the sum of [loan amount] (the “Loan”).
 
2. Interest. The Loan shall accrue interest at a rate of [interest rate] per annum. Interest shall be calculated based on a 365-day year and shall be paid monthly in arrears on the [date] of each month.
 
3. Repayment. Borrower agrees to repay the Loan in [number] installments of [installment amount] each, commencing on [date] and continuing on the [date] of each month thereafter until the Loan is fully repaid.
 
4. Prepayment. Borrower may prepay the Loan in whole or in part, without penalty or premium, at any time.
 
5. Use of Loan Proceeds. Borrower shall use the Loan proceeds solely for the purpose of [describe purpose of loan].
 
6. Security. The Loan shall be secured by [describe collateral or security interest, if any].
 
7. Representations and Warranties. Borrower represents and warrants to Lender that:
 
(a) Borrower is a corporation duly organized, validly existing, and in good standing under the laws of the State of [State];
 
(b) Borrower has the power and authority to enter into and perform its obligations under this Agreement;
 
(c) The execution, delivery, and performance of this Agreement by Borrower have been duly authorized by all necessary corporate action; and
 
(d) This Agreement constitutes a legal, valid, and binding agreement of Borrower, enforceable against Borrower in accordance with its terms.
 
8. Events of Default. The occurrence of any of the following events shall constitute an event of default under this Agreement:
 
(a) Failure by Borrower to make any payment when due under this Agreement;
 
(b) Breach by Borrower of any representation, warranty, or covenant contained in this Agreement;
 
(c) The occurrence of any event that would reasonably be expected to have a material adverse effect on Borrower’s ability to repay the Loan or perform its obligations under this Agreement.
 
9. Remedies. Upon the occurrence of an event of default, Lender may, at its option, declare the Loan immediately due and payable in full, and exercise any other remedies available to it under applicable law.
 
10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
 
11. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the Loan.
 
IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of the date first written above.
 
[Name of Lender]
 
By: [Signature]
 
Name: [Printed Name]
 
Title: [Title]
 
[Name of Borrower]
 
By: [Signature]
 
Name: [Printed Name]
 
Title: [Title]

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