Loan Agreement Template / Promissory Note Template
U.S. $[LOAN AMOUNT] [DATE]
FOR VALUE RECEIVED, the undersigned [DEBTOR NAME] having its principal place of business located at [ADDRESS] (the “Maker”) promises to pay to the individual or legal entity undersigned (the “Holder”), in lawful money of the United States of America, the original principal sum of [LOAN AMOUNT] and no/100 Dollars (U.S. $[LOAN AMOUNT]), together with interest which shall accrue and other amounts which may become due in accordance with the following provisions of this Loan Agreement / Promissory Note (the “Note” or “Agreement” or “Loan Agreement”):
Pursuant to this Loan Agreement, the Maker will authorize the issuance of this Note in the aggregate principal amount of [LOAN AMOUNT] ($[LOAN AMOUNT]) as of the above date to mature [LOAN DURATION] ([NUMBER OF MONTHS]) months from the date of this Note (the “Maturity Date”). This Note shall bear interest on the unpaid principal thereof at a rate of [INTEREST RATE] percent ([INTEREST RATE]%), payable beginning [DATE] and every [TIME PERIOD] thereafter until the Maturity Date.
At the Maturity Date, the Maker shall pay to the Holder the entirety of the outstanding principal along with any accrued interest.
- The Maker [MAY OR MAY NOT] make any payments of principal prior to the Maturity Date.
PURPOSE. The proceeds of this loan may be used for [PERMITTED PURPOSES].
EVENTS OF DEFAULT. The following shall be considered a full and material breach of this Loan Agreement entitling the Holder at its option (and without a requirement to notify the Maker) to declare the entire loan amount and any interest accrued to that point immediately due and payable and may proceed with collection from the Maker.
If the Maker is a subject of any proceeding under any bankruptcy, reorganization, arrangement, insolvency, statute, or law.
If any interest payment is not made [TIME FRAME] from the date it is due under this Note.
Any use of the loan proceeds by the Maker for any purpose not clearly permitted under Section 2 of this Note.
PandaTip: In other words, in the event that the person borrowing the money goes bankrupt, is late by the time stated, or doesn’t use the loan for what they said they would, they are in breach of this agreement and the person who is owed the money can declare the entire amount due no matter what the original due date listed.
PAYMENT OF COSTS AND LIABILITY. If the Holder incurs any costs or expenses, including attorneys’ fees, for any of the following relating to this Note due to default by the Maker and the Holder is required to seek relief from such default or enforce the Holders’ interest in this Note for any reason, then the Maker agrees to pay the reasonable attorneys’ fees (“reasonable” being the usual hourly billing rates charged by the Holder’s attorneys) and costs related to such action. If not paid within ten (10) days after demand, Holder may add such costs to the principal of this Note.
PandaTip: By way of example, if the Maker doesn’t pay the holder and defaults on the loan, then the Holder may, in a successful action against the Maker, sue not only for the amounts not paid under this Note, but also any seek reimbursement for any costs – including attorney’s fees – related to the collection after default.
SUCCESSORS AND ASSIGNS. Neither the Maker nor the Holder may assign, transfer, or sell this Note to any party without the written consent of the other Party. This Note shall be binding upon any permitted assignee or transferee, and subject to the same limitation in the event of a permitted transfer or assignment.
PandaTip: The Note is non-transferable unless both parties agree to any such transfer.
ENTIRE AGREEMENT. This Note contains all oral and written agreements, representations, and arrangements between the parties with respect to the debt to be incurred by the Maker, and no representations or warranties are made or implied, except as written in this document. No modification, waiver, or amendment of the provisions of this Note shall be effective unless in writing and signed by both parties to this Note.
APPLICABLE LAW. This Note and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of [STATE] and subject to the exclusive jurisdiction of the federal and state courts located in [COUNTY], [STATE].
IN WITNESS WHEREOF, each of the Parties has executed this Loan Agreement / Promissory Note, both Parties by its duly authorized officer, as of the day and year set forth below.