Board Resolution for Loan Approval Agreement
Prepared by: [YOUR NAME]
Email: [YOUR EMAIL]
This document formalizes the decision made by the Board of Directors of [YOUR COMPANY NAME] regarding the approval of a loan agreement. The resolution outlines the terms, conditions, and authorizations required for proceeding with the loan.
I. Purpose of the Resolution
The purpose of this Board Resolution is to formally approve the loan agreement between [YOUR COMPANY NAME] and [LENDER NAME], dated January 15, 2050, for the purpose of financing [specific business purpose, e.g., expansion, equipment purchase, working capital].
II. Loan Details
The loan approved by the Board of Directors is outlined below:
Loan Amount | Interest Rate | Loan Term | Repayment Period | Collateral |
|---|
$5,000,000.00 | 6.25% | 5 years | Monthly repayments | Real estate property |
The Board has reviewed the terms and conditions presented by [LENDER NAME] and confirms its agreement to proceed with the loan agreement.
III. Authorized Signatories
The following individuals are authorized to sign the loan agreement and related documents on behalf of [YOUR COMPANY NAME]:
Name | Title | Signature Date |
|---|
[NAME OF CEO] | Chief Executive Officer | January 20, 2050 |
[NAME OF CFO] | Chief Financial Officer | January 20, 2050 |
[NAME OF CHAIRMAN] | Board Chairman | January 20, 2050 |
These individuals are designated to act as representatives of the company in executing the loan contract.
IV. Loan Disbursement
The loan amount will be disbursed to [YOUR COMPANY NAME] on or after February 1, 2050, and will be deposited into the company’s designated bank account at [BANK NAME].
V. Repayment Terms
The loan will be repaid in monthly installments of $93,750.00, beginning March 1, 2050, for the term of five years, with the final payment due February 1, 2055.
VI. Use of Loan Proceeds
The Board of Directors approves the allocation of the loan funds as follows:
Purpose | Amount |
|---|
Business Expansion | $2,500,000.00 |
Purchase of Equipment | $1,500,000.00 |
Working Capital for Operations | $1,000,000.00 |
Contingency Fund | $500,000.00 |
The loan funds will be used in accordance with the stated purposes to ensure the company’s growth and stability.
VII. Other Conditions
The Board of Directors acknowledges and agrees to the following additional conditions stipulated by the lender:
[LENDER NAME] requires the company to maintain a minimum debt-to-equity ratio of 3:1 throughout the loan term.
[LENDER NAME] reserves the right to call the loan early in case of breach of any loan covenant.
VIII. Conclusion
The Board of Directors of [YOUR COMPANY NAME] hereby approves the terms and conditions of the loan agreement with [LENDER NAME]. The individuals listed above are authorized to sign the necessary documents to finalize the loan. This resolution is effective as of January 20, 2050.
Approved by:
[NAME OF CHAIRMAN], Board Chairman
[NAME OF CEO], CEO
[NAME OF CFO], CFO
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