LOAN AGREEMENT
State of Alabama
This Loan Agreement (the "Agreement) is entered into as of ________ by and between ________ (the "Borrower"), having its principal address located at ________, and ________ (the "Lender"), having its principal address located at ________, both of whom agree to be bound by this Agreement.
WHEREAS, the Borrower owes the Lender $________ (________) (the "Loan") with interest on the unpaid Loan at the rate of ________% per annum, on ________; and
WHEREAS, the Borrower and the Lender desire to enter into an agreement whereby the Borrower shall pay the Lender the sum of the Loan and interest on a payment plan according to the terms and conditions herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto, the Borrower and the Lender (individually, each a "Party" and collectively, the "Parties") covenant and agree as follows.
ARTICLE I. LOAN ACKNOWLEDGEMENT
The Borrower agrees and acknowledges that they owe the Lender an amount of money equal to the Loan as defined above. Nothing in this Agreement is a waiver of any other amounts owed and in the event of any breach of this Agreement by the Borrower, the Lender's rights to the Loan shall not be limited.
ARTICLE II. OWING PARTY REPRESENTATION AND WARRANTY
The Borrower hereby represents and warrants that this Agreement and the payment plan herein have been developed in a manner that the Borrower reasonably believes they can pay the Lender without further interruption notwithstanding an additional change in circumstances.
ARTICLE III. PAYMENT PLAN
The Parties hereby agree to the payment plan (the "Plan") described as follows.
By this Agreement, it is agreed that a payment in the amount of $________ (________) will be surrendered to the Lender annually on ________ of each year.
The Borrower will continue to make payments according to this schedule until ________ (the "Due Date"), at which point the Borrower will be required to pay a balloon payment of $________ (________), which constitutes the remaining balance of the Principal and accrued interest due on the Loan.
Unpaid principal after the Due Date listed above shall accrue interest at a rate of ________% annually until paid.
ARTICLE IV. METHOD OF PAYMENT
Payments shall be made to the Lender in accordance with the Plan via Cash.
The Borrower will make payments using this method unless prior written approval from the Lender allows otherwise.
ARTICLE V. EARLY PAYOFF
The Borrower reserves the right to pay off any remaining amount due, in full, before the Due Date, with no prepayment penalty. If the entire amount is paid off by ________, the Borrower will receive a discount as follows:
________
ARTICLE VI. SECURITY
This Loan Agreement is secured by the following collateral ("Collateral"):
________
Until this Loan is paid in full, Borrower grants Lender a security interest in the Collateral. Borrower hereby agrees to list Lender as a lender on the title of the Security, regardless of Lender's choice to perfect the security interest.
If Borrower defaults on this Loan Agreement and does not make payment for seven (7) days after it is demanded by Lender, the Collateral will revert to Lender and all rights in the ownership of such Collateral will belong to Lender.
ARTICLE VII. DEFAULT
The following events constitute default of this Loan Agreement and upon their occurrence, the entirety of any remaining amount due shall become immediately payable:
a) Borrower's failure to pay the Principal Sum or any accrued interest when such payments are due;
b) Borrower's insolvency;
c) Borrower's death, incompetency; liquidation, or dissolution;
d) Borrower's making of a general assignment for the benefit of Borrower's creditors;
e) Borrower's filing of any bankruptcy proceedings;
f) Any application for the appointment of a receiver for Borrower; or
g) Borrower's misrepresentation to Lender for the purposes of obtaining this Loan Agreement
ARTICLE VIII. COLLECTION COSTS
Should the Borrower default on completing any obligation contained within this Loan Agreement, including, but not limited to, if any of the circumstances in the Default provision occur, the Lender may declare the entire amount remaining due immediately. Any and all costs or expenses incurred by the Lender in enforcing the obligations of this Loan Agreement as a result of Buyer's default, including any legal fees or costs, will be added to the remaining amount due and must be paid immediately by the Borrower.
ARTICLE IX. RELEASE AND INDEMNIFICATION
In consideration for agreeing to this Loan Agreement, the Borrower hereby releases any claims against the Lender related to the Loan as of the date of this Agreement. However, nothing in this Agreement is meant to release the Borrower from its obligation to pay the Loan according to the Plan herein or limit the rights of the Lender in collecting said Loan.
ARTICLE X. ASSIGNMENT
The Lender may assign this Agreement with written notice to the Borrower. In the event of such assignment, the assignee may designate a new method of payment if desired.
ARTICLE XI. NO MODIFICATION UNLESS IN WRITING
No modification of this Agreement shall be valid unless in writing and agreed upon by both Parties.
ARTICLE XII. APPLICABLE LAW
This Loan Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of Alabama and subject to the exclusive jurisdiction of the federal and state courts located in Alabama.
ARTICLE XIII. SEVERABILITY
In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason, then the Parties agree that such provision shall be deemed to be struck and the remainder of the Agreement shall be enforced as if the struck provision were never included in the Agreement.
IN WITNESS WHEREOF, each of the Parties as executed this Agreement, both Parties by its duly authorized officer, as of ________.
LENDER:
Signature of ________:
______________________________________________
BORROWER:
Signature of ________:
________________________________________________