Finance Credit Agreement

This Finance Credit Agreement ("Agreement"), effective as of the date stated above, is entered into by and between [Lender Name], a [corporation/partnership/sole proprietorship] organized and existing under the laws of [Lender's State/Country], with a principal place of business at [Lender Address] ("Lender"), and [Borrower Name], a [corporation/partnership/individual], organized and existing under the laws of [Borrower's State/Country], with a principal place of business at [Borrower Address] ("Borrower").

WHEREAS, the Lender is in the business of providing loans and financial services; and

WHEREAS, the Borrower desires to obtain a loan from the Lender, and the Lender is willing to provide such loan to the Borrower under the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

I. Definitions and Interpretations

A. "Business Day" means any day other than a Saturday, Sunday, or federal holiday in the Lender’s Country.

B. "Collateral" refers to any property or asset offered by the Borrower as security for the loan.

C. "Default" means any event or circumstance specified as such in this Agreement.

D. "Interest Rate" refers to the annual rate of interest applicable to the loan as agreed upon by the Lender and the Borrower.

E. "Loan" means the principal amount of money lent by the Lender to the Borrower under this Agreement.

F. "Maturity Date" refers to the date on which the Loan is to be fully repaid by the Borrower, as specified in this Agreement.

G. "Principal" refers to the original sum of the Loan provided by the Lender to the Borrower.

Any reference in this Agreement to "writing" or similar expressions includes a reference to email or other electronic communications as agreed upon by the parties. The headings in this Agreement are for convenience only and shall not affect the interpretation of its provisions.

II. Loan Amount and Disbursement

A. Loan Amount: The Lender agrees to loan the Borrower a principal sum of Twenty-Five Thousand dollars ($25,000) (the "Loan").

B. Purpose of the Loan: The Loan shall be used by the Borrower exclusively for the expansion of the Borrower's retail business operations.

C. Disbursement: The Loan shall be disbursed to the Borrower in a single payment on March 1, 2084, or as soon as practicable thereafter, upon fulfillment of all conditions precedent as outlined in this Agreement. The Loan will be deposited electronically into the bank account designated by the Borrower.

D. Conditions Precedent to Disbursement: The obligation of the Lender to disburse the Loan is subject to the satisfaction of the following conditions precedent:

Execution of this Agreement by both the Lender and the Borrower.
Receipt by the Lender of all necessary authorizations, consents, and approvals required for the Borrower to enter into this Agreement.
Any other conditions deemed necessary by the Lender, including but not limited to the provision of Collateral.

E. Disbursement Fee: The Borrower agrees to pay a disbursement fee of 2% of the Loan amount, which shall be deducted from the Loan amount at the time of disbursement.

III. Purpose of the Loan

A. Stated Purpose: The Borrower agrees to use the Loan exclusively for the purpose of the expansion of the Borrower's retail business operations. This may include, but is not limited to, business expansion, capital expenditure, operational costs, or debt refinancing.

B. Restrictions on Use: The Loan must not be used for any purpose other than the Stated Purpose without the prior written consent of the Lender. The Borrower shall provide evidence of the use of funds upon the Lender's request.

C. Compliance: The Borrower warrants that the use of the Loan will be in compliance with all applicable laws and regulations. The Borrower shall indemnify the Lender against any losses incurred due to the misuse of the Loan.

IV. Interest Rate and Calculation

A. Interest Rate: The Loan shall bear interest at an annual rate of 5% (the "Interest Rate"). This rate shall be fixed throughout the term of the Loan.

B. Interest Calculation: Interest on the Loan shall be calculated on a monthly basis on the outstanding principal balance of the Loan.

C. Interest Payment: Interest payments shall be due monthly and payable in arrears on the first Business Day of the following period. The first interest payment shall be due on April 1, 2084, and subsequent payments shall follow according to the specified frequency.

D. Default Interest: In the event of a Default, as defined in this Agreement, the Interest Rate on the outstanding principal balance of the Loan shall be increased by 2% per annum above the then-current Interest Rate.

E. Capitalization of Unpaid Interest: If any interest payment is not paid on its due date, it shall be capitalized and added to the principal amount of the Loan and shall thereafter accrue interest at the same rate as the principal.

V. Repayment Terms

A. Repayment Schedule: The Borrower agrees to repay the Loan in 24 monthly installments of $1,250 each, commencing on April 1, 2084, and continuing until the Maturity Date of March 1, 2086.

B. Final Payment: The final payment, covering the remaining balance of the Loan, shall be due on the Maturity Date, March 1, 2086.

C. Method of Payment: Payments shall be made by the Borrower to the Lender via bank transfer to the account specified by the Lender.

D. Prepayment: The Borrower may prepay the Loan in whole or in part at any time without penalty. Any prepayment shall first be applied to accrued interest and then to the principal amount.

E. Late Payment: In case of late payment, the Borrower shall be liable to pay a late fee of 5% of the overdue amount for each month of delay.

VI. Fees and Charges

A. Origination Fee: The Borrower shall pay the Lender an origination fee of 2% of the loan amount, which shall be deducted from the Loan amount at disbursement.

B. Administration Fees: An annual administration fee of $500 shall be payable by the Borrower for the management of the Loan.

C. Legal and Due Diligence Fees: The Borrower shall bear all legal and due diligence costs incurred by the Lender in relation to this Agreement and the Loan, estimated to be $1,000.

D. Other Charges: Any other charges, including but not limited to processing fees, documentation fees, and transaction fees, will be borne by the Borrower.

VII. Collateral and Security

A. Security for the Loan: As security for the Loan, the Borrower shall provide the following as Collateral:

Real Estate Collateral: A commercial property located at [Address]. The property is owned outright by the Borrower and has an appraised value of $100,000.
Personal Guarantee: In addition to the real estate collateral, the Borrower shall also provide a personal guarantee. This guarantee shall be signed by [Guarantor's Name], the principal owner of the Borrowing entity, thereby pledging personal assets as additional security for the Loan.
Other Assets: The Borrower shall also pledge equipment, inventory, securities as part of the Collateral.

This Collateral, collectively referred to as the "Collateral," shall secure the fulfillment of all obligations and liabilities of the Borrower under this Agreement.

B. Valuation and Inspection of Collateral: The Collateral will be valued by an independent appraiser chosen by the Lender, and the Borrower shall permit the Lender or its agents to inspect the Collateral upon reasonable notice.

C. Maintenance of Collateral: The Borrower agrees to maintain the Collateral in good condition and insure it against risks to the satisfaction of the Lender.

D. Default and Seizure of Collateral: In the event of Default, the Lender shall have the right to seize and liquidate the Collateral to recover the outstanding Loan amount, subject to applicable laws.

E. Release of Collateral: Upon full repayment of the Loan and all associated charges, the Lender will release its interest in the Collateral and return it to the Borrower.

VIII. Covenants

A. Affirmative Covenants: The Borrower shall:

Promptly pay all sums due under this Agreement.
Comply with all applicable laws and regulations.
Maintain accurate and complete financial records.
Provide the Lender with annual financial statements.

B. Negative Covenants: The Borrower shall not:

Incur additional indebtedness without the prior written consent of the Lender.
Dispose of any major assets or undertake any merger or acquisition without the Lender’s approval.
Change the nature of its business in a manner that could adversely affect the repayment of the Loan.

C. Financial Covenants: The Borrower shall maintain:

A minimum cash balance of $10,000 at all times during the term of the Loan.
A debt-to-equity ratio not exceeding 2:1.

IX. Representations and Warranties

A. Authority: The Borrower has full power and authority to enter into this Agreement and the execution, delivery, and performance of this Agreement have been duly authorized.

B. Legal Compliance: The Borrower is in compliance with all laws and regulations applicable to its business.

C. Financial Information: All financial statements provided to the Lender are complete, accurate, and present a true and fair view of the Borrower’s financial condition.

D. No Litigation: There are no legal actions, suits, or proceedings pending or threatened against the Borrower that could materially affect its financial condition or ability to fulfill its obligations under this Agreement.

X. Events of Default and Remedies

A. Events of Default: An event of default shall occur if the Borrower:

Fails to make any payment due under this Agreement on the due date.
Breaches any covenant or representation in this Agreement.
Becomes insolvent or enters bankruptcy proceedings.
Experiences a material adverse change in its financial condition.

B. Remedies on Default: Upon an event of Default, the Lender may:

Declare all outstanding sums under this Agreement immediately due and payable.
Enforce its rights against the Collateral.
Exercise any other rights and remedies available under applicable law.

C. Cure Period: The Borrower shall have 30 days to cure any default, if such default is curable, upon receipt of written notice from the Lender.

XI. Amendments and Waivers

A. Amendments: This Agreement may be amended only by a written instrument signed by both the Lender and the Borrower.

B. Waivers: No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving party. The failure or delay of either party to exercise any right under this Agreement shall not operate as a waiver thereof.

XII. Notices

A. Manner of Notices: All notices and other communications under this Agreement must be in writing and will be deemed to have been duly given when delivered in person, sent by certified mail (postage prepaid, return receipt requested), or by email with confirmation of transmission, to the addresses specified in this Agreement or to such other address as either party may specify in writing.

B. Receipt of Notices: Notices will be deemed received on the date of delivery if delivered in person, on the date of the postmark if sent by mail, or on the date of sending if sent by email.

XIII. Governing Law and Jurisdiction

A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of New York, U.S., without regard to its conflict of law principles.

B. Jurisdiction: The parties agree that any legal action or proceeding arising out of or in connection with this Agreement shall be brought exclusively in the courts of the State of New York, U.S.

XIV. Miscellaneous Provisions

A. Entire Agreement: This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings, both written and oral.

B. Binding Effect: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

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

D. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Finance Credit Agreement as of the Effective Date.

Lender:

[Name]

[Title]

[Date]

Borrower:

[Name]

[Title]

[Date]