Commercial Credit Agreement
This Commercial Credit Agreement ("Agreement") is entered into by and between [Borrower Name], with a principal place of business located at [Borrower's Address] ("Borrower"), and [Lender Name], with a principal place of business located at [Lender's Address] ("Lender"), effective as of [Effective Date].
1. Loan Terms
1.1 Credit Limit
Lender agrees to extend a credit facility to Borrower in the maximum principal amount of $125,000 ("Credit Limit"), on the terms and conditions set forth herein. The Credit Limit shall be used to finance the Borrower's operational and equipment needs.
1.2 Interest Rate
The unpaid principal balance shall bear interest at a rate equal to [Interest Rate] per annum. Interest shall be calculated based on actual days elapsed over a 360-day year.
1.3 Repayment
Payments shall be made in consecutive monthly installments of $1,500 due on the 12th day of each month, beginning February 1, 2065 and continuing until the entire outstanding balance and accrued interest are paid in full. Final payment shall be due on March 1, 2070.
2. Borrower's Representations and Warranties
The Borrower represents and warrants as follows:
2.1 Organization and Authority
The Borrower is duly organized and validly existing under the laws of [State/Country], with the authority to enter into this Agreement and perform its obligations hereunder.
2.2 No Conflicts
The execution, delivery, and performance of this Agreement will not conflict with or result in a breach of any law, regulation, or agreement binding upon the Borrower.
3. Covenants
3.1 Financial Statements
The Borrower shall provide to the Lender quarterly financial statements within [Number] days of the end of each fiscal quarter and annual financial statements within [Number] days of the end of each fiscal year.
3.2 Use of Proceeds
The Borrower agrees to use the loan proceeds solely for the purposes indicated in this Agreement.
4. Events of Default
The occurrence of any of the following shall constitute an "Event of Default":
4.1 Failure to Pay
The Borrower fails to make any payment when due under this Agreement.
4.2 Insolvency
The Borrower becomes insolvent or unable to pay its debts as they mature.
5. Remedies
Upon the occurrence of an Event of Default, the Lender may declare the entire unpaid principal balance and all accrued interest immediately due and payable, and may exercise any rights and remedies available under applicable law.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of laws principles.
7. Miscellaneous
7.1 Amendments
This Agreement may not be amended except in writing signed by both parties.
7.2 Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations and understandings, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have executed this Commercial Credit Agreement as of the date first above written.
Signatures
Party A:
Party B:
Agreement Templates @ Template.net
