VIEWS: 933 PAGES: 5 CATEGORY: Financing With Debt POSTED ON: 7/3/2009
This is an agreement between a lender and a borrower whereby the lender agrees to finance the borrower's business on a revolving credit basis. Revolving credit is defined as a credit plan that does not have a fixed number of payments. This agreement specifies whether there was an advancement of funds, the interest rate charged, and the method of loan repayment. This document should be used by small businesses or other entities that want to either lend or borrow funds on a revolving credit basis.
This is an agreement between a lender and a borrower whereby the lender agrees to finance the borrower's business on a revolving credit basis. Revolving credit is defined as a credit plan that does not have a fixed number of payments. This agreement specifies whether there was an advancement of funds, the interest rate charged, and the method of loan repayment. This document should be used by small businesses or other entities that want to either lend or borrow funds on a revolving credit basis. © C o © p C yr FINANCING AGREEMENT o ig p ht This Financing Agreement (the “Agreement”), which is made and entered into as of the _________ __, yr E 20__, by and between _______________ (“Lender”), a ___________ [state], ig n _________________[entity], and _____________________ (“Borrower”), a ___________ [state], ht vi _________________[entity]. Bi si z o T n WHEREAS Borrower owns and operates a _______________________________ re S e B WHEREAS Borrower wishes to establish a revolving credit facility with Lender in the amount of In S. $_________ [AMOUNT]; c. 2 2 0 WHEREAS Lender wishes to advance the requested funds to Borrower in exchange for good and 0 0 valuable consideration; 0 4. 8. A WHEREAS it is desirable and in the best interests of the Borrower to enter into the aforesaid credit A ll facilities; and ll ri ri g NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, it is g ht agreed as follows: ht s s re Section 1. Advanced Funds. Lender shall establish in favor of Borrower a facility of re se $________[AMOUNT] which Borrower can draw down, on a revolving basis. se rv rv ed Section 2. Interest Rate. Any and all advanced funds shall bear interest at a rate of [__] percent per e . annum. [NOTE: LENDER MAY ALSO ADD LANGUAGE ABOUT "COMPOUNDED DAILY, d. Pr "COMPOUNDED MONTHLY," etc.] P ot ro ec Section 3. Method of Loan Repayment. Borrower shall make all payments called for under this te te Agreement by sending check or other negotiable instrument made payable to the following individual ct d or entity at the address indicated: e b d y ____________________________ b th ____________________________ y e ____________________________ th co ____________________________ e p co yr If Lender gives written notice to Borrower that a different address shall be used for making payments p ig under this loan agreement, Borrower shall use the new address so given by Lender. yr ht ig la Section 4. Default. Borrower's failure to pay any amount due as principal or interest on the date ht w required under this Agreement shall constitute a default. la s w of Section 5. Cure of Defaults. Upon default, Lender shall give Borrower written notice of default by s th mailing written notice to Borrower via U.S. Postal Service. Certified Mail shall constitute of e prima facie evidence of delivery. Borrower shall have 15 days after receipt of written notice th U of default from Lender to cure said default. In the case of default due solely to Borrower's e ni U te © Copyright 2011 Docstoc Inc. 2 ni d te St d at i n ter a o l s . I T S L E G A N D T R I C L Y P O H B E D T I S R U , P B L H O F E R S A L , ©CopyrightBzTeInc.208Alrightsevd.PocbythepriglawsofUntdeSaC ndby failure to make timely payment as called for in this Agreement, Borrower may cure the default by making full payment of any principal and accrued interest (including interest on these amounts) whose payment to Lender is overdue under the loan agreement and, also, the late-payment penalty described below. Section 6. There shall also be imposed upon Borrower a [__]% penalty for any late payment computed upon the amount of any principal and accrued interest whose payment to Lender is overdue under Agreement and for which Lender has delivered a Notice of Default to Borrower. [NOTE: COURTS WILL INVALIDATE A PENALTY THAT IS DEEMED TO BE UNREASONABLY HIGH. LENDER SHOULD CAREFULLY CONSIDER THE ACTUAL COSTS OF A LATE PAYMENT, AND TAILOR THIS PENALTY CLAUSE CLOSELY TO THE ACTUAL DAMAGES THAT LENDER REASONABLY ESTIMATES. LENDER MAY ALSO WANT TO SEPARATELY MAINTAIN WRITTEN DOCUMENTATION OF THIS CALCULATION, IN ANTICIPATION OF A FUTURE CHALLENGE TO ITS REASONABLENESS.] Section 7. Acceleration. If Borrower fails to cure any default on or before the expiration of the fifteen (15) day cure period that starts on the date Borrower receives written notice from Lender that an event of default has occurred under this Agreement, the entire unpaid principal, accrued interest, and penalties under this Agreement shall accelerate and become due and payable immediately. Section 8. Indemnification of Attorneys Fees and out-of-pocket costs. Should any party materially breach this Agreement, the non-breaching party shall be indemnified by the breaching party for its reasonable attorneys fees and out-of-pocket costs which in any way relate to, or arise out of, the breach of this Agreement. The term "out-of-pocket costs", as used herein, shall not include lost profits. A default by Borrower which is not cured within 15 days after receiving a written notice of default from Lender constitutes a material breach of this Agreement by Borrower. Section 9. Severability. To the extent that any provision hereof is deemed unenforceable, all remaining provisions of this Agreement shall not be affected thereby and shall remain in full force and effect. Section 10. Modification. Except as otherwise provided in this document, this agreement may be modified, superseded, or voided only upon the written and signed agreement of the Parties. Section 11. Governing Law and Consent to Jurisdiction. The Parties, by entering into this agreement, submit to jurisdiction in State of [____________] for adjudication of any disputes and/or claims between the parties under this Agreement. This Agreement shall be interpreted under, and governed by, the laws of the state of [___________], without regard to conflict of laws principles. Both parties voluntarily consent to the jurisdiction of all courts in the State of [_______________]. Section 12. Entire Agreement. This Agreement, including the attachments mentioned in the body as incorporated by reference, sets forth the entire agreement between the parties with regard to the subject matter hereof. All prior agreements, representations and warranties, express or implied, oral or written, with respect to the subject matter hereof, are hereby superseded by this agreement. © Copyright 2011 Docstoc Inc. 3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written BORROWER LENDER _________________ ________________ Authorized Signature Authorized Signature _________________ ________________ Print Name and Title Print Name and Title © Copyright 2011 Docstoc Inc. 4
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