Secured loan agreement template, A loan agreement is the document which represents the formal evidence of a loan. The document also includes important details such as covenants, positive or negative ones, the information on the security 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 period of repayment envisaged.
To sum up, the loan agreement includes the terms and the conditions which are pointed out so the borrower may draw out a loan. The terms and conditions are determined by the lender, which is a bank, or another type of financial institution. In fact, the loan represents a type of”facility” that is offered by the lender, and that is why the agreement on the terms under which a loan could be removed can also be referred to as a facility agreement. The agreement comprises four sections.
The first section comprises the terms that are to be used in the document and their definitions.
The next section is concerned with the operational terms pertinent to the agreement, meaning it points out the amount to be borrowed, the program of its repayment, and the interest on the repayment. The second section of this loan agreement is of special interest for the fiscal agents of the borrower.
The third section is dedicated to the particulars of the loan transaction; it comprises the responsibilities of the borrower and the lender, the steps to be undertaken in the event of the borrower’s inability to repay the loan; there’s also information on the extent to which changes can be made to the arrangement. The next section is drawn up after detailed negotiations between the creditor and the borrower.
The final fourth sections contains standard text including details like contract information, the relationships which exist between the finance parties – in case of more than one tender and more than one law that apply to the agreement. Check it out the sample of secured loan agreement template below at the attachment page.