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This Loan Agreement (this “Agreement”) is entered into as of ____________ (the “Effective Date”) by and between ____________, with an address at ____________ (“Lender”), and ____________, with an address at ____________ (“Borrower”).
Lender agrees to lend Borrower the principal sum of $____ (the “Principal”), delivered on or about ____________. Borrower acknowledges receipt of, or Lender's binding commitment to deliver, the Principal.
The unpaid Principal shall bear simple interest at a rate of 0% per year, calculated from the date funds are delivered until the loan is repaid in full. Interest shall not exceed the maximum rate permitted by applicable law; any excess collected shall be applied to Principal.
Borrower shall repay the loan in consecutive monthly installments of $____, beginning on ____________ and continuing on the same day of each month thereafter until the Principal and all accrued interest are paid in full. Payments shall be applied first to accrued interest and then to Principal. The final payment shall equal the remaining balance.
Borrower may prepay all or any part of the loan at any time without premium or penalty. Prepayments shall be applied first to accrued interest and then to Principal.
Borrower is in default if: (a) any payment is not made within fifteen (15) days after its due date; (b) Borrower becomes insolvent, files or has filed against it any bankruptcy proceeding, or makes an assignment for the benefit of creditors; or (c) Borrower breaches any other provision of this Agreement and fails to cure within fifteen (15) days after written notice. Upon default, Lender may declare the entire unpaid balance, together with accrued interest, immediately due and payable.
If the loan is referred to an attorney or collection agency after default, Borrower shall pay Lender's reasonable costs of collection, including reasonable attorneys' fees and court costs, to the extent permitted by law.
All notices under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail (return receipt requested) to the addresses stated in this Agreement, or sent by email with confirmation of receipt.
This Agreement shall be governed by and construed in accordance with the laws of the State of ____________, without regard to its conflict-of-laws principles.
Any dispute arising out of or relating to this Agreement shall be resolved exclusively in the state or federal courts located in ____________, and each party consents to the personal jurisdiction of those courts.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect, and the invalid provision shall be modified to the minimum extent necessary to make it valid and enforceable.
This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior or contemporaneous understandings, agreements, negotiations, and discussions, whether oral or written. This Agreement may be amended only by a written instrument signed by both parties.
This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered electronically (including through a reliable electronic signature service) shall be deemed original signatures for all purposes, consistent with the U.S. ESIGN Act and applicable state law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date, intending to be legally bound.