LOAN AGREEMENT
BETWEEN
________________(THE “LENDER”)
AND
_________________(THE “BORROWER”)
______________________________________________________________________________
THIS AGREEMENT is made on the …………..day of……….20……., (hereinafter “Effective
Date”) by the Lender of _______________________________________________address, and
the Borrower of ____________________________________________address (collectively
referred to as the "Parties" or individually as the "Party") and includes that Party’s successors,
heirs and assigns.
In consideration of covenants and agreements contained in this Agreement, and other good and
valuable consideration, the receipt of which is hereby acknowledged, Parties agree to the
following terms and conditions and to be bound thereby:
1) Loan Amount: The total amount of money borrowed from the Lender to the Borrower
is $________________ (“Loan”). The Borrower agrees to pay the said Loan as provided
in this Agreement.
2) Term: The total amount of the Loan, including principal and interest, shall be due and
payable on ____________________(“Due Date”).
3) Disclaimer: The Parties entered into a loan agreement on _______________date, (herein
“Previous Agreement”). All payments made under the Previous Agreement shall not be
taken into account in this Agreement.
4) Payment: This Agreement, shall be due and payable, including the principal and any
accrued interest, in the following ways:
Weekly Payments. The Borrower agrees to repay the Lender a payment of
$____________ on the ______________of each week until the Due Date.
All payments made by the Borrower are to be applied first (1st) to any accrued
interest and then to the principal balance.
5) Interest: There shall be no interest associated with the Loan. The Borrower’s only
obligation to the Lender is to repay the principal balance.
6) Prepayment: If the Borrower makes a payment prior to the Due Date, there shall be:
(select one)
☐ – A Prepayment Penalty of _________% of the principal amount prepaid.
☐ – No Prepayment Penalty
Any prepayments shall first be applied to interest, late charges and costs, if any, and
then to principal.
7) Late Payment: If a payment is late, the Borrower shall be charged a Late Fee of 100% of
the outstanding payment.
8) SECURITY. As part of this Agreement, the Borrower agrees to: (select one)
☐ – Pledge Security. The Borrower agrees to secure this Agreement by pledging the
following collateral:
___________________________________________________________ (“Security”).
In the event the Borrower defaults under this Agreement, the Lender shall obtain
possession of the Collateral: (select one)
☐ – In its entirety and without discount to the amount owed.
☐ – Equal to the amount owed of which a sale may be required.
☐ – Not Pledge Security. This Agreement shall not be secured by any property or asset of
the Borrower.
9) Events of Acceleration: The occurrence of any of the following shall constitute an
"Event of Acceleration" by the Lender under this Agreement:
a) Late Payment. If any payment is late
b) Default. If the Borrower should default on any of the conditions of this Agreement; or
c) Security. If assets or property that are pledged as Security as part of this Agreement are
transferred or sold.
Upon the occurrence of an Event of Acceleration under this Agreement, and in addition
to any other rights and remedies that Lender’s may have, Lender shall have the right, at
its sole and exclusive option, to declare this Agreement immediately due and payable.
10) Expenses: In the event any payment under this Agreement is not paid when due, the
Borrower agrees to pay, in addition to the principal and interest hereunder, reasonable
attorneys’ fees not exceeding a sum equal to the maximum usury rate in the State of
Maryland of the then outstanding balance owing on the Agreement, plus all other
reasonable expenses incurred by Lender in exercising any of its rights and remedies upon
default.
11) Further Assurances: The Borrower hereto agrees to perform any further acts and to
execute and deliver any further documents that may be reasonably necessary to carry out
the provisions of this Agreement.
12) Dispute resolution: Parties agree to settle disputes under this Agreement through either;
☐Mediation ☐Arbitration ☐Litigation.
13) Borrower’s acknowledgments: The Borrower acknowledges that they have been
provided with the opportunity to negotiate this agreement and to seek legal counsel
before signing this agreement. In addition, the Borrower acknowledges that they have
entered into this agreement with the capacity and authority to contract freely and
voluntarily and to be legally bound herein.
14) General provisions
● This Agreement may be amended only by the written consent of the Parties hereto.
● If any provision is held to be invalid or unenforceable, it shall not affect the validity or
enforceability of any other provision.
● This Agreement constitutes the entire agreement between the Parties. It supersedes all
prior oral or written agreements or understandings between the Parties concerning the
subject matter of this Agreement. The parties will exercise utmost good faith in this
Agreement.
● Except where otherwise provided, failure by the Lender to enforce any of these terms or
conditions shall not be a waiver of their right to enforce them. No waiver by the Lender
of any breach of, or of compliance with, any condition or provision of this Agreement by
the Borrower shall be considered a waiver of any other condition or provision or of the
same condition or provision at another time. The rights and remedies of the Lender shall
be cumulative and may be pursued singly, successively, or together, in the sole discretion
of the Lender.
● This Agreement may be executed in any number of counterparts, each of which shall be
an original and all of which constitute the same instrument.
● The Article and Section headings in this Agreement are for convenience, and they form
in no part of this Agreement and shall not affect its interpretation.
● Whenever used herein, the singular number shall include the plural, and the plural
number shall include the singular.
● Any references herein to the masculine gender or the masculine form of any noun,
adjective, or possessive shall be construed to include the feminine or neuter gender and
form, and vice versa.
● This Agreement shall be governed in all respects by the laws of Maryland, and its Courts
without regard to its conflict of law provisions.
IN WITNESS WHEREOF, each of the Parties has executed this Agreement, as set forth below.
Signed by the LENDER
Signature:
Name:
Date:
Signed by the BORROWER
Signature:
Name:
Date:
GUARANTOR (IF APPLICABLE)
The Guarantor, known as ____________________, agrees to be liable and pay the Loan
Amount, including principal and interest, in the event of the Borrower’s default. The Guarantor
agrees to be personally liable under the terms and obligations of the Borrower in this Agreement.
Guarantor’s Signature: _____________________ Date: _____________
Print Name: ____________________
At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, The LegalPen will be able to prepare the legal document within the shortest time possible. You can send us your quick enquiry ( here )