Loan agreement - template

LOAN AGREEMENT

THIS LOAN AGREEMENT (this "Agreement") dated this _____ day of _______, 20__

 

BETWEEN:

 

(Name) ___________________________________ of

 

(Address) _____________________________________________________________

(the "Lender")

OF THE FIRST PART AND

 

(Name) ____________________________________ of

 

(Address) _____________________________________________________________

(the "Borrower")

OF THE SECOND PART

IN CONSIDERATION OF the Lender loaning certain monies (the "Loan") to the Borrower, and the Borrower repaying the Loan to the Lender, both parties agree to keep, perform and fulfil the promises and conditions set out in this Agreement:

 

Loan Amount & Interest

  1. The Lender promises to loan an amount up to $___________ AUD to the Borrower and the Borrower promises to repay this principal amount to the Lender, with interest payable on the unpaid principal at the interest rate, calculated monthly not in advance, beginning on the date of the first drawing against the Loan Amount. Additional amounts may be loaned from time to time after the date of this agreement, and these sums will be traceable by deposit to the Lender’s personal bank account.

 

Interest Rate

  1. Interest will be charged on the principal sum at a rate of  _____ %pa.

 

Repayment

  1. This Loan will be repaid in full, being principal and interest, upon Property Settlement being finalised between _______________________ and _______________________.

  1. The Borrower has the right to prepay all or any part of the principal amount of this Loan, together with accrued and unpaid interest thereon, at any time prior to Property Settlement without prepayment penalty or premium of any kind.

 

Default

  1. Notwithstanding anything to the contrary in this Agreement, if the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may declare the principal amount owing and interest due under this Agreement at that time to be immediately due and payable.

 

Costs and Fees

  1. In the event of default, the Borrower shall pay to the Lender all costs of collection including reasonable attorney's fees.

 

Waiver

  1. The Borrower and all sureties, guarantors, and endorsers hereof, waive presentment, protest and demand, notice of protest, demand and dishonour and non-payment of this Loan.

 

Successors and Assigns

  1. This Loan will inure to the benefit of and be binding on the respective successors and permitted assigns of the Borrower. The Borrower may not assign its rights or delegate its duties under this Loan without the Lender's prior written consent.

 

Governing Law

  1. This Agreement will be construed in accordance with and governed by the laws of the State/Territory of ________________________.

 

Binding Effect

  1. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest, and notice of protest.

 

Amendments

  1. This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.

 

Severability

  1. The clauses and paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision is reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no ,vay be affected, impaired or invalidated as a result.

 

General Provisions

  1. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.

 

Entire Agreement

  1. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.

 

IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this ______________ day of __________________, 20___.

 

Signature of Lender: _______________________________________                   

Name of Lender: ___________________________________________

SIGNED, SEALED, AND DELIVERED

This _____ day of _____________, 20___ in front of

the person below who is over 18 years of age and not

involved with the contents of this document or related

to any of the parties in this document.

 

___________________________________ (Signature of witness)

WITNESS DETAILS:
Name: ___________________________________________

Address: _________________________________________

Occupation: _______________________________________

 

Signature of Borrower: _____________________________________

Name of Borrower: ________________________________________

SIGNED, SEALED, AND DELIVERED

This _____ day of _____________, 20___ in front of

the person below who is over 18 years of age and not

involved with the contents of this document or related

to any of the parties in this document.

 

___________________________________ (Signature of witness)

WITNESS DETAILS:
Name: ____________________________________________

Address: __________________________________________

Occupation: ________________________________________

 

 

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