Common Contracts
1 similar Loan Agreement contracts
Loan agreement with collateral pdfLoan Agreement • June 3rd, 2023
This agreement is typically used for more complex payment arrangements and often gives the lender and borrower more protections, such as borrower representations, warranties, and covenants. In a loan agreement, a lender can accelerate the loan if the borrower defaults. So if the borrower misses a payment or goes bankrupt, the lender can make the entire amount of the loan plus any interest due and payable immediately. Here is a simple chart explaining the difference between an IOU, a promissory note, and a loan agreement. LoanPromissory NoteIOU promise to repay promise to repaypromise to repay steps for repaymentsteps for repayment timeline to repaytimeline to repay legally bindinglegally binding signature of borrowersignature of borrower signature of lender repay in installments consequences of defaulting (i.e. right to foreclosure) For more detailed information, you can view our article on the differences between the three most common loan forms. How Will the Money Be Repaid? The loan
