WHEN YOU FORM YOUR COMPANY
OR TRUST ONLINE AT AMERILAWYER.COM,

PAYMENT IS NOT REQUIRED

LENDER'S AGREEMENT

A well-drafted Lender's Agreement will:

  • Provide a frame work for the disbursement and subsequent payment of a loan.
  • Provide for "Balloon Payments" in order to accommodate borrowers who need to make smaller installment payments over the length of the loan, but who will have more cash on hand at the end of the payment term.
  • Provide terms for early payment if allowed.
  • Provide terms for securing the underlying debt with collateral and allow for additional collateral prior to any additional disbursement.
  • Provide for the possibility of future advances.
  • Provide a frame work for the accelerated collection of the debt upon some default by the borrower.

GET A QUOTE FOR YOUR AGREEMENT HERE

Information & Benefits:
The following information and benefits is what distinguishes us from other online providers.

Loan Amount
- Detail Principal and Interest Payment and Term of payments. Often, a Borrower agrees to a larger final "balloon payment" to accommodate smaller installment payments. The Borrower may also pay interest-only over the course of the loan payment term and pay the principal as a lump-sum at the end. Variable and fixed rates of interest and installment periods may vary.

Payment

Where payment should be submitted.


Prepayment

Promisor (Borrower) wants to be able to prepay the balance due without penalty. Conversely, the Promisee (Lender) wants to be able to accelerate the balance due because he wants the regular interest payments. Old argument was that it was difficult for Seller to recalculate new Principal and Interest each month, but new technology pretty much absorbs this argument.


Security/Collateral

Not all notes are "Secured" or otherwise backed up with collateral. However, a Lender may require such collateral before lending any monies. Such collateral can be almost anything, but is usually comprised of corporate stock, hard assets such as equipment and inventory, and/or real estate. NOTE ALSO that the Lender may require additional collateral upon subsequent advances (See below).

Future Advances
Very practical because client may want to start off with smaller advances of capital, but over the longer period may wish to advance much larger amounts - this provision allows for this. Very favorable to lender borrower's progress can be examined prior to additional advances.


Default

Lender generally accelerates the balance due upon default or assumes rights in security if a secured note. Lender is most concerned with the following activities which will result in a default by Borrower:


- Payments not made on time;
- Borrower assigns any business interest to another creditor;
- Borrower petitions for or declares bankruptcy or insolvency;
- Borrower falls into receivership;
- Borrower is dissolved


Litigation & Attorney's Fees

Lender wants assurances that no litigation is pending against the Borrower and if litigation is required, the prevailing party will also receive attorney's fees.


Mediation and Arbitration

Mediation and Arbitration should always specify a location in Client's jurisdiction (preferably, in the same county where they run their business). Mediation is a non-binding way to settle the dispute quickly and amicably. If unable to settle in mediation, arbitration is first option available. Arbitration is the preferred alternative to litigation because of speed, cost, and ability to maintain low profile (no info is publicly available).


Governing Law

Always stipulate that the contract will be governed under whatever law the Client ordinarily conducts business. Always make sure that venue and jurisdiction are as convenient to client as possible.


No Modification or Waiver

No modifications except those specifically agreed upon by the parties in writing. Any waiver of a term or provision will not act as a waiver of any other provision.

Notices

Notices should always list the current and best addresses where each party may contact the other for whatever reason.

GET A QUOTE FOR YOUR AGREEMENT HERE


Real Lawyers. Real People.
Spiegel & Utrera, P.A. : Affordable Agreements. Custom-Fit Contracts.

Why do I need a Legal Contract or Agreement?

Our Office

Miami

1840 Coral Way
4th Floor
Miami, FL 33145
Toll Free: (800) 603 - 3900
(305) 854-6000
Fax: (305) 857-3700
Natalia Utrera, Esq.,
Managing Attorney

New York City

1 Maiden Lane
5th Floor
New York, NY 10038
Toll Free: (800) 576-1100
(212) 962-1000
Fax: (212) 964-5600
Nicolas Spigner, Esq.
Managing Attorney

Clifton, NJ

642 Broad St., Suite 1B
Clifton, NJ 07013
Toll Free: (888) 336-8400
(973) 473-2000
Fax: (973) 778-2900
Sandy A. Adelstein
Managing Attorney

Los Angeles

8939 S Sepulveda Blvd.
Suite 400
Los Angeles, CA 90045
Toll Free: (888) 520-7800
(310) 258-9700
Fax: (310) 258-9400
Nicolas Spigner, Esq.
Managing Attorney

Delaware

9 East Loockerman Street
Suite 202
Dover, DE 19901
Toll Free: (888) 641-3800
(302) 744-9800
Fax: (302) 674-2100
Courtney Riordan, Esq.
Managing Attorney

Las Vegas

2545 Chandler Avenue
Suite 4
Las Vegas, NV 89120
Toll Free: (888) 530 4500
(702) 364 2200
Fax: (702) 458 2100
Joel S. Beck, Esq.
Managing Attorney

Chicago

Continental Office Plaza, Suite L12
2340 Des Plaines River Road
Des Plaines, IL 60018
Toll Free: (888) 514-9800
(312) 443-1500
Fax: (312) 443-8900
Michael C. Welchko, Esq.
Managing Attorney

General Counsel Club®

Unlimited Legal & Business Advice
LEARN MORE!
Toll Free: 1 (800) 734 - 9900
Fax: 1 (800) 520 - 7800
ClubAssist@AmeriLawyer.com
Natalia Utrera, Esq.,
Managing Attorney

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