A credit agreement contract is an agreement between a lender and a borrower where the lender agrees to provide a loan to the borrower. This agreement outlines the terms and conditions of the loan, the repayment schedule, the interest rate, and any other fees associated with the loan.
When creating a credit agreement contract, it is important to ensure that it is legally binding and clearly outlines the responsibilities of both the borrower and the lender. A well-drafted credit agreement contract can help prevent any misunderstandings or disputes during the loan term.
Here is an example of a sample credit agreement contract:
Credit Agreement Contract
This credit agreement contract (“Agreement”) is made on the _______ day of ________ 20____, between [Lender name] (“Lender”) and [Borrower name] (“Borrower”).
Loan Amount: The Lender agrees to provide a loan to the Borrower in the amount of [Loan amount].
Interest rate: The loan will accrue interest at a rate of [Interest rate] per annum, calculated daily on the outstanding balance.
Repayment schedule: The Borrower shall repay the loan in [Number of months] equal monthly payments of [Payment amount], starting on the _______ day of ________ 20____, and on the same day of each month thereafter.
Prepayment: The Borrower may prepay the loan in part or in full at any time without penalty.
Default: The Borrower shall be in default of this Agreement if any payment is not received within [Number of days] days of its due date. In case of default, the Lender shall have the right to demand immediate payment of the outstanding balance and any accrued interest.
Fees: The Borrower shall pay to the Lender any fees associated with this loan, including but not limited to late payment fees and prepayment fees.
Governing law: This Agreement shall be governed by and construed in accordance with the laws of the [State/Country].
Entire agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties with respect to the subject matter of this Agreement.
Amendments: This Agreement may be amended or modified only by written agreement of both parties.
In witness whereof, the parties have executed this Agreement as of the date first written above.
[Lender signature] [Borrower signature]