Hard money loan agreement sample, A loan agreement is the document which represents the formal evidence of financing. The record also includes important details such as covenants, positive or negative ones, the data on the collateral such as loan type and its value, in addition to guarantees, the applicable rates of interest, fees, the conditions according to which the loan is to be repaid, and the duration of repayment envisaged.
To sum up, the loan agreement includes the terms and the terms which are pointed out so that the borrower can draw out a loan. The terms and conditions are set by the lender, which can be a bank, or another sort of financial institution. In fact, the loan represents a sort of”facility” that is given by the creditor, and that’s the reason the agreement on the conditions under which a loan can be taken out is also called a facility agreement. The arrangement comprises four sections.
The first section comprises the terms that should be used in the document and their definitions.
The second section is concerned with the operational terms relevant to the agreement, meaning it points out the amount to be borrowed, the schedule of its repayment, and the interest on the repayment. The second section of the loan agreement is of special interest for the fiscal agents of the debtor.
The next section is devoted to the specifics of the loan transaction; it comprises the obligations of the borrower and the lender, the measures to be undertaken in case of the borrower’s inability to repay the loan; there is also information on the degree to which changes could be made to the agreement. The third section is drawn up after detailed negotiations between the lender and the borrower.
The final fourth segments contains standard text including details like contract data, the relationships which exist between the fund parties – in the event of more than one tender and more than one law that apply to this agreement. Check it out the sample of hard money loan agreement sample below at the attachment page.