Lender and Borrower Agreement Sample

A lender and borrower agreement is a crucial document that outlines the terms and conditions under which a loan is provided. This agreement ensures both parties have a clear understanding of their obligations and rights, helping to prevent disputes and misunderstandings. The document typically includes details such as the loan amount, interest rate, repayment schedule, and any collateral required. Below is a detailed sample of a lender and borrower agreement, which can be customized according to specific needs and legal requirements.

Lender and Borrower Agreement

1. Introduction

This Lender and Borrower Agreement ("Agreement") is made and entered into as of [Date], by and between [Lender's Name], located at [Lender's Address] ("Lender") and [Borrower's Name], located at [Borrower's Address] ("Borrower").

2. Loan Amount and Disbursement

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

2.2. Disbursement: The Loan will be disbursed to the Borrower’s account as follows: [Disbursement Details].

3. Interest Rate

3.1. Interest Rate: The Loan will bear an annual interest rate of [Interest Rate]%, calculated on the outstanding principal balance.

3.2. Interest Calculation: Interest will be calculated on a [Daily/Monthly/Quarterly/Annual] basis.

4. Repayment Terms

4.1. Repayment Schedule: The Borrower agrees to repay the Loan in [Number] equal installments of $[Installment Amount] each, beginning on [Start Date] and continuing on the [Day] of each month until [End Date].

4.2. Early Repayment: The Borrower may repay the Loan in full or in part before the due date without penalty. Any early repayment will be applied first to outstanding interest and then to the principal balance.

5. Collateral

5.1. Collateral: To secure the Loan, the Borrower agrees to provide the following collateral: [Description of Collateral].

5.2. Collateral Valuation: The value of the collateral must be at least equal to the Loan amount.

6. Default

6.1. Events of Default: An event of default occurs if the Borrower fails to make any payment when due or breaches any term of this Agreement.

6.2. Remedies: Upon default, the Lender may declare the entire unpaid principal balance and accrued interest immediately due and payable. The Lender may also take possession of the collateral to satisfy the Loan.

7. Representations and Warranties

7.1. Borrower’s Representations: The Borrower represents that they have the authority to enter into this Agreement and that the Loan will be used for lawful purposes.

7.2. Lender’s Representations: The Lender represents that they have the authority to enter into this Agreement and provide the Loan.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State].

9. Miscellaneous

9.1. Amendments: This Agreement may be amended only by a written document signed by both parties.

9.2. Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect.

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

10. Signatures

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

Lender:
[Name]
[Signature]
[Date]

Borrower:
[Name]
[Signature]
[Date]

Appendix

A. Loan Amortization Schedule

Payment Number	Payment Date	Principal Payment	Interest Payment	Total Payment	Remaining Balance
1	[Date]	$[Amount]	$[Amount]	$[Amount]	$[Amount]
2	[Date]	$[Amount]	$[Amount]	$[Amount]	$[Amount]
…	…	…	…	…	…