A loan agreement must be signed by both parties to avoid future disputes. A loan contract is essential, regardless of the beneficiary. Even if the loan is given to a friend or family member, it is always better to have a loan agreement. It serves as a legal document for resolving disputes that may arise in the future between the borrower and the lender. 11.1 This agreement, along with the documents and other documents contemplated here, constitute the full approval of the borrower and the lender and express their full understanding of the credits that must be advanced or advanced by the lender to the borrower. A loan agreement is a contract between the borrower and the lender that sets the terms for the borrower to make a loan. A loan can be taken by a credit institution, friends, family member, etc. A loan agreement contains the following information: 9.1 Each of the following events constitutes a delay event (a “delay event” under this agreement): (a) a bankruptcy application is filed for the borrower, the borrower makes an application to suspend payments or claims his own bankruptcy; (b) a decision to dissolve or liquidate the borrower is made or such a dissolution is ordered by a court or other competent authority; (c) the borrower does not comply with any obligation of this agreement which, if corrected, is not remedied within ten days of the borrower receiving a notification on the matter; (d) the borrower reserves with its creditors, or has appointed the liquidator for all of its assets or for one of its assets, or takes or undergoes similar measures as a result of its debt. 14.1 This agreement or a provision of this Agreement can only be amended in writing by each of the parties.
IN WITNESS WHEREOF, the borrower and the lender entered into this agreement on the date set at the beginning of this agreement. 5.1 Unless the lender can give its written consent, the proceeds of the advances are used by the borrower for the purpose of extending existing institutions and working capital and the purpose of the business. The borrower does not directly or indirectly use a portion of the proceeds of an advance for purposes that violate a provision of an applicable law, regulation, injunction or restriction, or that would have the effect of infringing the lender. “Maximum credit amount” means USD – million (million). “advances,” any loan or credit advance made by the lender to the borrower pursuant to this agreement. “LIBOR” the London interbank offer rate set by the British Banking Association In addition to the conditions set by other entities in this agreement, unless otherwise stated, the following conditions apply to all uses, if used in this agreement, as well as to any notification or other document transmitted under this agreement: 8.3 If the borrower is legally required to comply with the legal obligation. 8.3 , to deduct or withhold on amounts due under this agreement under this agreement, the borrower exempts the lender from the deduction or withholding of amounts owed under this contract, by paying the lender, at the time of the payment due to the lender, an additional amount guaranteeing that the lender receives a net amount after deduction or withholding that corresponds to the amount it would have received if the deduction or withholding had not been made. 12.1 This agreement and its amendments can be executed in several considerations, each of which must be original. The different counterparties form a single agreement. 6.1 Each current advance is fully repaid (including all interest that has not yet been paid and calculated on a time basis) after the lender has notified the borrower in writing at least three months, unless the repayment is made before the due date of the advance.