Company to Company Loan Agreement Template

Introduction

This Company to Company Loan Agreement (the "Agreement") is made and entered into as of [Date], by and between [Lender Company Name], a company incorporated under the laws of [Lender’s State/Country] with its principal place of business at [Lender’s Address] ("Lender"), and [Borrower Company Name], a company incorporated under the laws of [Borrower’s State/Country] with its principal place of business at [Borrower’s Address] ("Borrower").

1. Loan Amount and Disbursement

1.1 Loan Amount: The Lender agrees to loan the Borrower the principal sum of [Loan Amount] (the "Loan").

1.2 Disbursement: The Loan shall be disbursed to the Borrower's designated account within [number] days after the execution of this Agreement and fulfillment of all conditions precedent.

2. Interest Rate

2.1 Interest Rate: The Loan shall bear interest at the rate of [Interest Rate]% per annum, calculated on the basis of a 360-day year.

2.2 Interest Calculation: Interest shall be calculated on the outstanding principal amount of the Loan from the date of disbursement until the Loan is repaid in full.

3. Repayment Terms

3.1 Repayment Schedule: The Borrower agrees to repay the Loan in [number] equal installments of [Installment Amount] each, commencing on [Start Date] and continuing on the [Day] of each month thereafter until the Loan is repaid in full.

3.2 Prepayment: The Borrower may prepay the Loan, in whole or in part, at any time without penalty. Prepayments shall be applied to the outstanding principal.

4. Use of Loan Proceeds

4.1 Purpose: The Borrower agrees to use the Loan proceeds exclusively for [Specify Purpose].

4.2 Restrictions: The Borrower shall not use the Loan proceeds for any unlawful purpose or for purposes other than those specified in this Agreement.

5. Representations and Warranties

5.1 Borrower’s Representations: The Borrower represents and warrants that it has the power and authority to enter into this Agreement and that this Agreement constitutes a valid and binding obligation of the Borrower.

5.2 Lender’s Representations: The Lender represents and warrants that it has the power and authority to enter into this Agreement and that this Agreement constitutes a valid and binding obligation of the Lender.

6. Covenants

6.1 Compliance with Laws: The Borrower shall comply with all applicable laws and regulations in the use of the Loan proceeds.

6.2 Financial Statements: The Borrower agrees to provide the Lender with financial statements on a [monthly/quarterly/annual] basis.

7. Events of Default

7.1 Default Events: The occurrence of any of the following shall constitute an event of default:

• Failure to make any payment when due.
• Breach of any covenant or agreement contained in this Agreement.
• Insolvency or bankruptcy of the Borrower.

7.2 Remedies: Upon the occurrence of an event of default, the Lender may declare the Loan immediately due and payable, and may pursue any legal or equitable remedies available.

8. Governing Law

8.1 Jurisdiction: This Agreement shall be governed by and construed in accordance with the laws of [Governing State/Country].

8.2 Dispute Resolution: Any disputes arising out of or in connection with this Agreement shall be resolved through [Arbitration/Mediation] in [Location].

9. Miscellaneous

9.1 Amendments: Any amendments or modifications to this Agreement must be in writing and signed by both parties.

9.2 Notices: Any notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above.

9.3 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Lender Company Name]
By: ___________________________
Name:
Title:

[Borrower Company Name]
By: ___________________________
Name:
Title: