Loan Agreement - Template Form to Create Word & PDF Pro · US-law
✓ Valid in United States · drafted to comply with local law
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LOAN AGREEMENT
State of ________
RECITALS:
A. This Loan Agreement (the "Agreement") is entered into as of ________ (the "Effective Date") by and between the following borrowing party (the "Borrower"):
________
of
________
and the following lending party (the "Lender"):
________
of
________
each of whom agrees to be bound by this Agreement.
B. WHEREAS, the Lender has agreed to lend to the Borrower, and the Borrower has agreed to borrow from the Lender, the principal sum of $________ (________) (the "Principal" or the "Loan"), together with interest accruing on the unpaid balance of the Principal at the fixed rate of ________% per annum, computed on the basis of a ________-day year;
C. WHEREAS, the Borrower represents that the proceeds of the Loan shall be used solely for the following purpose:
________
D. WHEREAS, the parties acknowledge that the rate of interest set forth herein does not exceed the maximum rate permitted under the applicable usury and consumer-credit laws of the State of ________, and that should any interest charged hereunder be deemed to exceed such lawful maximum, the rate shall automatically be reduced to the highest rate permitted by law and any excess theretofore collected shall be applied to the Principal or refunded to the Borrower;
E. WHEREAS, the Borrower and the Lender desire to set forth the terms and conditions upon which the Loan shall be repaid, together with interest, in accordance with the payment schedule set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lender (individually, each a "Party" and collectively, the "Parties") covenant and agree as follows.
§ I. LOAN ACKNOWLEDGEMENT.
1.1. The Borrower agrees and acknowledges that the Borrower is indebted to the Lender in an amount equal to the Loan as defined above, together with interest thereon as provided herein. Nothing in this Agreement constitutes a waiver of any other amounts owed, and in the event of any breach of this Agreement by the Borrower, the Lender's rights with respect to the Loan shall not be limited or impaired.
§ II. BORROWER REPRESENTATIONS AND WARRANTIES.
§ III. REPAYMENT AND PAYMENT PLAN.
3.1. The Borrower shall repay the Loan, together with accrued interest, by installment payments in the amount of $________ (________) each, payable ________, commencing on ________ and continuing on ________ of each successive period thereafter (the "Plan").
3.2. The Borrower shall continue to make payments in accordance with the Plan until ________ (the "Due Date"), at which time the Borrower shall pay a final balloon payment in the amount of $________ (________), representing the entire remaining balance of the Principal together with all accrued and unpaid interest then due on the Loan.
3.3. All payments shall be applied first to accrued late charges and costs, next to accrued and unpaid interest, and thereafter to the reduction of the outstanding Principal.
§ IV. METHOD OF PAYMENT.
4.1. Payments shall be made to the Lender, at the Lender's address set forth above or at such other place as the Lender may designate in writing, in accordance with the Plan by means of ________.
4.2. The Borrower shall make all payments using this method unless prior written approval from the Lender allows otherwise.
4.3. Upon receiving each required payment, the Lender shall, upon request, issue to the Borrower a written acknowledgement confirming receipt of the funds.
§ V. PREPAYMENT.
5.1. The Borrower may prepay all or any part of the outstanding Principal prior to the Due Date. In the event of such prepayment, the Borrower shall be subject to the following prepayment terms and any applicable prepayment charge, to the extent permitted by applicable law:
________
§ VI. SECURITY INTEREST.
6.1. As security for the prompt payment and performance of all obligations under this Agreement, the Borrower hereby grants to the Lender a security interest in the following collateral (the "Collateral"):
________
6.2. Until the Loan is paid in full, the security interest in the Collateral shall remain in effect. The Borrower authorizes the Lender to file one or more financing statements pursuant to Article 9 of the Uniform Commercial Code as enacted in the State of ________, and to take such further actions as may be necessary to perfect and continue the Lender's security interest. The Borrower agrees to note the Lender as a lienholder on the certificate of title to any titled Collateral, regardless of the Lender's election to perfect its security interest.
6.3. The Borrower and the Lender agree that any real property offered as collateral for the Loan shall be properly recorded by way of a mortgage or deed of trust in accordance with the laws of the State of ________. The Borrower shall bear responsibility for ensuring that all necessary steps are taken to record such collateral, including executing and filing any required documents with the appropriate governmental authorities, and shall provide the Lender with proof of recording upon request. Failure to properly record real property collateral may constitute an event of default under this Agreement, subject to the remedies available to the Lender under applicable law.
6.4. If the Borrower defaults under this Agreement and fails to cure such default within seven (7) days after written demand by the Lender, the Lender may, to the extent permitted by applicable law, exercise all rights and remedies of a secured party under the Uniform Commercial Code with respect to the Collateral, including repossession and disposition thereof in a commercially reasonable manner.
§ VII. LATE CHARGES.
7.1. If the Lender has not received the full amount of any installment payment within ________ calendar days after the date such payment is due, the Lender may assess a late charge against the Borrower of $________ (________), to the extent permitted by applicable law, for each such delinquent payment until the Borrower makes the required payment or the Lender agrees in writing to cease charging the late fee.
§ VIII. EVENTS OF DEFAULT.
8.1. Each of the following events shall constitute an event of default under this Agreement:
(a) the Borrower's failure to pay any installment of Principal or accrued interest when due, and the continuation of such failure beyond any applicable cure period;
(b) the Borrower's insolvency or inability generally to pay debts as they become due;
(c) the Borrower's death, incompetency, liquidation, or dissolution;
(d) the Borrower's making of a general assignment for the benefit of creditors;
(e) the commencement by or against the Borrower of any proceeding under federal or state bankruptcy or insolvency laws;
(f) the appointment of, or application for the appointment of, a receiver, trustee, or custodian for the Borrower or any of its property;
(g) any material misrepresentation made by the Borrower to the Lender for the purpose of obtaining this Loan; or
(h) the Borrower's breach of any other covenant or obligation under this Agreement that remains uncured for ________ days after written notice.
§ IX. REMEDIES UPON DEFAULT.
§ X. RELEASE AND INDEMNIFICATION.
10.1. In consideration for the Lender's agreement to enter into this Agreement, the Borrower hereby releases any claims against the Lender arising out of or related to the Loan as of the Effective Date. Nothing in this Agreement shall be construed to release the Borrower from its obligation to repay the Loan in accordance with the Plan or to limit the rights of the Lender in collecting the Loan.
§ XI. ACCELERATION UPON BREACH.
11.1. In the event the Borrower fails to make any payment in accordance with the Plan without prior written approval from the Lender, and such failure continues for thirty (30) calendar days after the date the payment was due, the Lender may, at its sole discretion, declare the full outstanding amount of the Loan, together with accrued interest, immediately due and payable.
§ XII. ASSIGNMENT.
12.1. The Borrower may not assign or delegate its obligations under this Agreement without the prior written consent of the Lender. The Lender may assign this Agreement upon written notice to the Borrower. In the event of such assignment, the assignee may designate a new method of payment if desired.
§ XIII. NOTICES.
13.1. All notices required or permitted under this Agreement shall be in writing and shall be deemed duly given when delivered personally, sent by a nationally recognized overnight courier, or sent by certified mail, return receipt requested, to the address of the respective Party set forth above or to such other address as a Party may designate by written notice.
§ XIV. WAIVER.
14.1. To the extent permitted by applicable law, the Borrower waives presentment for payment, demand, notice of dishonor, protest, and notice of protest. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the Party against whom enforcement is sought.
§ XV. NO MODIFICATION UNLESS IN WRITING.
15.1. No modification, amendment, or supplement to this Agreement shall be valid unless in writing and signed by both Parties.
§ XVI. ENTIRE AGREEMENT.
16.1. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, whether written or oral.
§ XVII. GOVERNING LAW AND JURISDICTION.
17.1. This Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of ________, without regard to its conflict-of-laws principles, and the Parties consent to the exclusive jurisdiction and venue of the federal and state courts located in ________, State of ________.
§ XVIII. SEVERABILITY.
18.1. In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason, such provision shall be deemed struck and the remainder of the Agreement shall be enforced as if the struck provision were never included herein.
IN WITNESS WHEREOF, each of the Parties has executed this Agreement, each Party acting by its duly authorized representative, as of ________.
LENDER:
Signature: ______________________________________________
Name: ________
Date: ________
BORROWER:
Signature: ________________________________________________
Name: ________
Date: ________
ACKNOWLEDGEMENT (NOTARY).
State of ________, County of ________.
On this ________, before me personally appeared ________, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.
Notary Public Signature: ______________________________________________
Printed Name: ________
My commission expires: ________
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