Collateral Loan Agreement
This Collateral Loan Agreement ("Agreement") is entered into as of January 15, 2050, by and between:
Lender: [Your Name], located at 123 Financial Blvd, New York, NY 10001.
Borrower: Emily R. Williams, located at 456 Maple Street, Los Angeles, CA 90001.
1. Loan Amount and Terms
The Lender agrees to loan the Borrower the amount of $50,000 (Fifty Thousand Dollars), under the following terms:
Interest Rate: 6% per annum, compounded annually.
Repayment Schedule: The Borrower agrees to repay the loan in 10 equal monthly installments of $5,500 starting on February 1, 205,0 and continuing until the loan is fully repaid. The final payment will be made on November 1, 2050.
2. Collateral
To secure the loan, the Borrower agrees to provide the following collateral:
Real Estate: A residential property located at 789 Oak Drive, Los Angeles, CA 90002, with a current market value of $75,000.
The Borrower warrants that the property is free of any existing liens or claims and agrees to maintain it in good condition throughout the term of the loan.
3. Default and Consequences
In the event of default, defined as the Borrower's failure to make any scheduled payment within 15 days of the due date, the Lender has the right to take possession of the collateral. The Lender may sell the property to recover the outstanding balance of the loan. If the sale proceeds exceed the outstanding loan balance, the Lender will remit the surplus to the Borrower. If the sale proceeds are insufficient, the Borrower will remain responsible for the balance.
4. Miscellaneous Provisions
Governing Law: This Agreement shall be governed by the laws of the state of California.
Dispute Resolution: Any dispute arising under this Agreement shall be resolved through binding arbitration in Los Angeles, California, by the rules of the American Arbitration Association (AAA).
5. Signatures
By signing below, both parties agree to the terms outlined in this Collateral Loan Agreement.
[Your Name]
[Date]
Emily R. Williams
[Date]
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