LOAN AGREEMENT

by | Mar 27, 2024 | Agreements

THIS AGREEMENT is hereby entered into on this ………………day of …….……………. Two Thousand and ……………………………

BETWEEN

  1. XXXX, of address [insert address] hereinafter referred to as (“Lender”)

AND

  1. YYYY, of address [insert address] hereinafter referred to as (“Borrower”)

WHEREAS, the Lender has agreed to loan the Borrower a sum of $8000 (the “Loan Amount”) and the Borrower has agreed to repay the Loan Amount in fortnightly payments of $750 starting May 4th, recurring every second Thursday until the Loan Amount is fully paid off; and

WHEREAS, the parties wish to enter into this Agreement to formalize the terms and conditions of the loan, including the payment schedule, interest fees, and termination provisions; and

WHEREAS, the Borrower represents and warrants that the Loan Amount will be used for lawful purposes only, the Borrower has the legal capacity to enter into this Agreement and to fulfill all obligations under this Agreement, and the information provided to the Lender is true and accurate; and

WHEREAS, the parties agree that this Agreement shall be governed by and construed in accordance with the laws of the state of [insert state here] without regard to its conflict of law provisions.

Now, therefore, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

  1. LOAN AMOUNT AND PAYMENT TERMS:
  2. a) Pursuant to this agreement, the Lender has agreed to provide a loan in the sum of $8000 (the “Loan Amount”) to the Borrower. In consideration of the Loan Amount, the Borrower has agreed to repay the Loan Amount in accordance with the terms set forth herein.
  3. b) The repayment of the Loan Amount shall be made in installments of $750 every second Thursday, commencing on May 4th, and continuing fortnightly until the full Loan Amount has been repaid. The Borrower acknowledges and agrees that the repayment schedule is a material term of this agreement and that the Borrower shall not be released from any obligation to repay the Loan Amount until it has been repaid in full.
  4. c) In the event that the Borrower fails to make any payment on the due date, the Lender shall have the right to charge a late fee of 10% per day on the outstanding amount until the payment is made in full. The Borrower acknowledges and agrees that such late fees may be added to the Loan Amount and become part of the total amount due.
  5. d) The Lender shall have the right to terminate this agreement in the event that the Borrower fails to make any payment for a period of 30 days or more. The Borrower acknowledges and agrees that in the event of termination, the outstanding Loan Amount, along with any accrued interest and late fees, shall become immediately due and payable.
  6. LATE PAYMENT AND INTEREST FEES:

In the event that the Borrower fails to make a timely payment on the scheduled due date, the Lender shall have the right to impose a late fee equivalent to 10% of the outstanding balance, which shall be added on a daily basis until the full payment is received. The Borrower acknowledges and understands that the imposition of such late fees shall be in addition to any other remedies available to the Lender under applicable law or this Agreement.

  1. TERMINATION OF AGREEMENT:
  2. a) Once the Loan Amount has been fully paid off, this Agreement shall terminate automatically.
  3. b) The Borrower may terminate this Agreement at any time by providing written notice to the Lender and paying the remaining Loan Amount in full. In the event of termination, the Borrower shall have no further obligation to make any payments under this Agreement.
  4. c) The Lender may terminate this Agreement if the Borrower fails to make any payment for a period of 30 days or more. In the event of termination by the Lender, the Borrower shall immediately pay the full outstanding balance of the Loan Amount, including any interest and late fees accrued up to the date of termination.
  5. d) If either party breaches any term or provision of this Agreement, the non-breaching party may terminate this Agreement upon written notice to the breaching party if the breach is not cured within 10 days of receiving written notice of the breach.
  6. e) Termination of this Agreement shall not relieve the Borrower from the obligation to pay any outstanding balance of the Loan Amount, interest, and late fees accrued up to the date of termination. All other provisions of this Agreement, which by their nature should survive termination, shall survive such termination.
  7. REPRESENTATIONS AND WARRANTIES:

The Borrower represents and warrants that:

  1. a) The Loan Amount will be used for lawful purposes only.
  2. b) The Borrower has the legal capacity to enter into this Agreement and to fulfill all obligations under this Agreement.
  3. c) The information provided to the Lender is true and accurate.
  4. GOVERNING LAW:

This Agreement shall be governed by and construed in accordance with the laws of the state of [insert state here] without regard to its conflict of law provisions.

  1. DISPUTE RESOLUTION:

In the event of any dispute arising from this agreement, both parties agree to first attempt to resolve the dispute through mediation. If mediation is unsuccessful, the dispute will be resolved through binding arbitration in accordance with the rules of the American Arbitration Association. The party filing the dispute shall bear the cost of mediation or arbitration.

  1. ENTIRE AGREEMENT:

This Agreement contains the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the Loan Amount. This Agreement may not be amended or modified except in writing signed by both parties.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

SIGNED by the parties:                                           )

…………………………….                                                 ) _________________

XXXX                              Signature

Date: …………………………….

AND

……………………………………                                         )_________________

YYYY                 Signature

Date: …………………………….

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