The agreement typically starts with definitions and interpretations of key terms, followed by detailed sections on the loan amount, purpose, and security. It outlines the repayment terms, including the schedule and method of payments, and specifies the interest rate applied to the loan. The document also includes representations and warranties from both parties, covenants, and events of default, which detail the consequences if the borrower fails to meet the terms of the agreement.
Additionally, the template covers dispute resolution mechanisms, confidentiality clauses, and termination conditions. This comprehensive document ensures that both parties are clear on their obligations and rights, providing a legal framework that protects the interests of both the lender and the borrower.
