Credit Agreement Format Letter
Date:
Borrower:
Borrower's Name:
Borrower's Address:
Lender:
Your Name:
Your Address:
Subject: Credit Agreement
Dear Borrower's Name,
This letter serves as a formal agreement between [Your Name], hereinafter referred to as the "Lender," and [Borrower's Name], hereinafter referred to as the "Borrower." This Credit Agreement outlines the terms and conditions under which the Lender agrees to extend credit to the Borrower.
1. Loan Amount
The Lender agrees to provide the Borrower with a loan of $25,000 to be repaid as per the terms outlined in this agreement.
2. Interest Rate
The loan will carry an annual interest rate of 5.5%, calculated from the date the funds are disbursed until the loan is fully repaid.
3. Repayment Terms
The Borrower agrees to repay the loan in 12 monthly installments of $2,145.83 each, due on the 15th of each month, starting from November 15, 2050, until the full loan amount is repaid by October 15, 2051.
4. Collateral
As security for the loan, the Borrower agrees to provide the following collateral:
2018 Toyota Camry, VIN: 4T1BF1FK8HU123456. If the Borrower defaults, the Lender reserves the right to claim this collateral.
5. Late Payment Penalties
In case of late payment, a fee of $50 will be charged for each day past the due date. After 30 days, the Lender reserves the right to take further legal action or repossess the collateral.
6. Default
If the Borrower fails to make payments according to the schedule outlined above or breaches any other terms of this agreement, the loan will be considered in default. In the event of default, the full outstanding loan balance, including interest and penalties, will become immediately due.
7. Governing Law
This Credit Agreement is governed by and shall be interpreted by the laws of the State of [State].
8. Entire Agreement
This letter constitutes the entire agreement between the Lender and the Borrower, superseding all previous discussions or agreements, both written and verbal.
Signatures:
[Borrower's Full Name]
Date:
[Your Name]
Date:
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