Free Accounting Loan Agreement

This Accounting Loan Agreement ("Agreement") is made and entered into as of [Month Day, Year] ("Effective Date"), by and between:

[Your Company Name], a corporation organized and existing under the laws of the State of [State Name], with its principal office located at [Your Company Address] ("Lender"),

and

[Borrower’s Name], an individual residing at [Borrower’s Address] ("Borrower").

RECITALS

WHEREAS, Borrower desires to borrow from Lender certain funds to meet its financial needs, and Lender is willing to make such a loan to Borrower upon the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the parties agree as follows:

1. LOAN AMOUNT AND TERMS

1.1 Loan Amount: Subject to the terms and conditions of this Agreement, Lender agrees to loan Borrower the principal sum of [Loan Amount in Words] Dollars ($[0]) ("Loan").

1.2 Purpose of Loan: The Loan is intended to finance [business operations].

1.3 Disbursement: The Loan shall be disbursed to Borrower in full on [Month Day, Year] or as otherwise agreed by the parties in writing.

1.4 Interest Rate: The Loan shall bear interest at the rate of [Interest Rate in Words] Percent ([0]%) per annum, calculated on the basis of a 360-day year for the actual number of days elapsed.

1.5 Repayment Schedule: Borrower shall repay the Loan in equal monthly installments of [Installment Amount in Words] Dollars ($[0]), commencing on [Month Day, Year], and continuing on the [5th] of each month thereafter until the Loan, together with all accrued interest, is paid in full. The final payment shall be due on [Month Day, Year].

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

2. SECURITY

2.1 Security Interest: As security for the Loan, Borrower hereby grants to Lender a security interest in the following property: [Description of Collateral] (the "Collateral").

2.2 Perfection of Security Interest: Borrower agrees to execute and deliver to Lender any financing statements, security agreements, and other documents necessary to perfect Lender’s security interest in the Collateral.

2.3 Maintenance of Collateral: Borrower shall maintain the Collateral in good condition and repair, and shall not sell, lease, transfer, or otherwise dispose of the Collateral without the prior written consent of Lender.

3. REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender that:

3.1 Authority: Borrower has the full legal right, power, and authority to enter into and perform this Agreement.

3.2 No Conflicts: The execution, delivery, and performance of this Agreement does not and will not conflict with, result in a breach of, or constitute a default under any agreement or instrument to which Borrower is a party.

3.3 Financial Condition: Borrower’s financial statements provided to Lender are true, correct, and complete in all material respects, and fairly present Borrower’s financial condition as of the dates thereof.

3.4 Litigation: There are no actions, suits, proceedings, or investigations pending or, to Borrower’s knowledge, threatened against Borrower that could adversely affect Borrower’s ability to perform its obligations under this Agreement.

4. COVENANTS

Borrower covenants and agrees with Lender that:

4.1 Use of Proceeds: Borrower shall use the proceeds of the Loan solely for the purpose stated in Section 1.2.

4.2 Financial Reporting: Borrower shall provide Lender with [monthly/quarterly/annual] financial statements, including a balance sheet, income statement, and cash flow statement, within [number] days after the end of each reporting period.

4.3 Insurance: Borrower shall maintain insurance on the Collateral against such risks and in such amounts as Lender may require, with Lender named as a loss payee.

4.4 Taxes and Assessments: Borrower shall promptly pay all taxes, assessments, and other charges levied or assessed against the Collateral.

5. DEFAULT

5.1 Events of Default: The following events shall constitute an "Event of Default" under this Agreement:

(a) Borrower fails to make any payment of principal or interest when due under this Agreement;

(b) Borrower breaches any representation, warranty, or covenant contained in this Agreement;

(c) Borrower becomes insolvent or bankrupt, or is the subject of any proceeding under any bankruptcy or insolvency law;

(d) A judgment or lien is entered against Borrower or the Collateral that Lender deems to impair the security for the Loan;

(e) Borrower fails to provide financial statements or other information as required under this Agreement.

5.2 Remedies: Upon the occurrence of an Event of Default, Lender may, at its option and without notice to Borrower, take any or all of the following actions:

(a) Declare the entire unpaid principal balance of the Loan, together with all accrued interest, immediately due and payable;

(b) Foreclose on the Collateral in accordance with applicable law;

(c) Exercise any and all other rights and remedies available to Lender at law or in equity.

5.3 Acceleration: If the Loan is accelerated under Section 5.2(a), Borrower shall immediately pay to Lender the entire unpaid principal balance of the Loan, together with all accrued interest and any other sums due under this Agreement.

6. MISCELLANEOUS

6.1 Notices: Any notice, demand, or other communication required or permitted to be given under this Agreement shall be in writing and shall be delivered personally, sent by certified mail, return receipt requested, or sent by a recognized overnight courier service to the addresses set forth above, or to such other address as either party may designate in writing.

6.2 Waiver: No waiver of any term or provision of this Agreement shall be effective unless in writing and signed by the party against whom such waiver is asserted. No waiver of any breach or default shall be deemed a waiver of any subsequent breach or default.

6.3 Severability: If any provision of this Agreement is held to be invalid, illegal, or unenforceable under applicable law, such provision shall be severed from this Agreement, and the remaining provisions shall remain in full force and effect.

6.4 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State Name], without regard to its conflicts of law principles.

6.5 Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, and negotiations, whether written or oral, between the parties.

6.6 Amendments: This Agreement may be amended or modified only by a written instrument executed by both parties.

6.7 Assignment: Borrower may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of Lender. Any attempted assignment in violation of this Section shall be void.

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

6.9 Attorney’s Fees: In the event of any litigation or dispute arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and costs from the non-prevailing party.

6.10 Headings: The headings in this Agreement are for convenience of reference only and shall not affect the interpretation or construction of this Agreement.

7. SIGNATURES

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

[Your Company Name]

By:

[Your Name]

[Title]

[Month Day, Year]

[Borrower’s Name]

By:

[Full Name]

[Month Day, Year]

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