Template for Intercompany Loan Agreement

This Intercompany Loan Agreement ("Agreement") is made and entered into as of [Date], by and between [Lender Company Name], a [State/Country] corporation with its principal place of business at [Lender Address] ("Lender"), and [Borrower Company Name], a [State/Country] corporation with its principal place of business at [Borrower Address] ("Borrower").

RECITALS

WHEREAS, the Lender is willing to lend certain funds to the Borrower, and the Borrower is willing to accept such funds on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the parties hereto agree as follows:

1. LOAN AMOUNT AND TERMS

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

1.2 Interest Rate: The Loan shall bear interest at a rate of [Interest Rate]% per annum, calculated on the basis of a 360-day year for the actual number of days elapsed.

1.3 Disbursement: The Loan amount shall be disbursed to the Borrower’s designated account on [Disbursement Date].

1.4 Repayment Schedule: The Borrower shall repay the Loan in [Number] installments of [Installment Amount] each, commencing on [First Payment Date] and continuing on the [Day] of each subsequent month until the Loan is fully repaid.

1.5 Prepayment: The Borrower may prepay the Loan in whole or in part at any time without penalty.

2. USE OF LOAN

The Borrower agrees to use the Loan exclusively for [Purpose of Loan]. Any deviation from this purpose must be approved in writing by the Lender.

3. REPRESENTATIONS AND WARRANTIES

3.1 Borrower’s Representations: The Borrower represents and warrants that it has the power and authority to enter into this Agreement and perform its obligations hereunder.

3.2 Lender’s Representations: The Lender represents and warrants that it has the power and authority to enter into this Agreement and perform its obligations hereunder.

4. COVENANTS

4.1 Financial Statements: The Borrower agrees to provide the Lender with quarterly financial statements and annual audited financial statements.

4.2 Compliance with Laws: The Borrower agrees to comply with all applicable laws and regulations in connection with the use of the Loan.

4.3 Insurance: The Borrower shall maintain insurance coverage on its assets and business operations as required by applicable laws and regulations.

5. EVENTS OF DEFAULT

5.1 Definition of Default: An event of default occurs if the Borrower fails to make any payment when due, breaches any covenant, representation, or warranty under this Agreement, or becomes insolvent.

5.2 Remedies: Upon the occurrence of an event of default, the Lender may declare the Loan immediately due and payable and exercise any remedies available under applicable law.

6. MISCELLANEOUS

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

6.2 Dispute Resolution: Any disputes arising out of or relating to this Agreement shall be resolved through [Mediation/Arbitration] in [Location].

6.3 Amendments: This Agreement may be amended only by a written instrument signed by both parties.

6.4 Notices: All notices under this Agreement shall be in writing and sent to the respective addresses of the parties set forth above.

6.5 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

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

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