A debt contract is an agreement in which the debtor agrees to repay funds to a lender. For example, in a mortgage transaction, he may agree to make monthly payments to the bank. In a short-term debt contract, he must repay the loan within 12 months. The maturity of a long-term debt contract exceeds a year. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Debt Agreement Agreement made on the (date), between (Name of Debtor) of (street address, city, state, zip code), referred to herein as Debtor, and (Name of Lender), of (street address, city, state, zip code), referred to herein as Lender. Whereas, the Lender loaned to Borrower the sum of $ _______ on the (date); and Whereas, Lender and Borrower agree that the Loan is a debt owed by the Borrower and will be paid to the Lender; Now, therefore, for and in consideration of the said Loan, the mutual covenants contained in this Agreement, and other good and valuable consideration, the parties agree as follows: 1. Interest shall accumulate on the unpaid balance of the loan at a rate of _____% APR and compounded monthly. All interest that accumulates will be added to the balance of the unpaid loan. 2. The Borrower will make payments to the Lender on the _____ day of each month and individual payments may not be anything less than $___________ 3. If a payment is past due, a penalty of $__________will be added to the unpaid balance of the loan. 4. If a check written by Borrower “bounces” a charge of $_________shall be added to the unpaid balance of the loan, and all futur
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