Drafting a Term Loan Agreement

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Drafting a term loan agreement is an essential step for any business or entrepreneur. It is a legally-binding document which outlines the terms and conditions of the loan, such as interest rate, payment schedule, collateral and other important details. The Genie AI team understands just how important it is to have a well-crafted agreement in place - something which helps protect the legal rights and interests of both parties involved.

When drafting a term loan agreement there are several factors to consider. Firstly, it’s vital to specify the amount being borrowed and when payments are due; this gives lenders an indication of creditworthiness and allows them to manage their cash flow more effectively. Structure of repayment should also be taken into account; this could include installments over an extended period or one lump sum paid at maturity. Interest rate should also be specified - although there may be consensus on certain aspects across different countries, this can also vary based upon individual circumstances, so it’s best to discuss with your lender beforehand what would work best for you both.

Aside from cost considerations, it’s also wise to include security or collateral in your agreement - this provides protection for lenders if borrowers default on their payments - as well as provisions regarding governing law and jurisdiction (to ensure enforcement). Dispute resolution clauses should also be included; these help avoid long court cases by settling any disagreements quickly and efficiently between both parties involved.

To conclude: no matter what stage you’re at in your business journey, a term loan agreement is always worth investing time into crafting correctly - not only because it safeguards everyone’s interests but provides clarity on the terms of the loan too! To help you do that without paying legal fees we’ve developed Genie AI – the world’s largest open source legal template library – containing millions of datapoints designed to show market-standard agreements like yours! Our community template library enables anyone to draft & customize high quality documents quickly & easily – why not read on below for our step-by-step guidance & find out how you can access our templates today?

Definitions

Principal: The amount of money borrowed in a loan.
Interest: The amount paid by a borrower to a lender for the use of borrowed money.
Maturity Date: The date on which the loan must be repaid in full.
Collateral: Something of value that is pledged as security for repayment of a loan, to be forfeited in the event of a default.
Default: A failure to make payments or comply with the terms of a loan agreement.
Secured Loan: A loan that requires the borrower to provide some type of collateral, such as real estate or equipment, in exchange for the loan.
Unsecured Loan: A loan that does not require any type of collateral and is based solely on the borrower’s creditworthiness.
Fixed-rate Loan: A loan with a fixed interest rate that does not fluctuate over the term of the loan.
Variable-rate Loan: A loan with an interest rate that can change over the term of the loan.
Credit Line: A type of loan that provides access to a certain amount of money that can be used as needed and repaid over a period of time.
Lien: A legal claim against a property that must be settled before the property can be sold or transferred.
Security Interest: A legal right granted by a borrower to a lender to secure repayment of a loan.

Contents

1. Overview of the key components of a term loan agreement
2. Understand the key terms associated with a term loan agreement
3. Become familiar with the different types of agreements
4. Understand the differences between fixed-rate and variable-rate loans
5. Negotiating the terms of a loan
6. Understand the purpose of the loan
7. Determine the desired loan amount
8. Negotiate the interest rate and repayment terms
9. Understanding the types of term loan agreements
10. Understand the difference between term loans and credit lines
11. Become familiar with the different loan types and their advantages/disadvantages
12. Drafting the loan agreement
13. Prepare a loan agreement document
14. Identify the parties involved
15. Incorporate all the terms and conditions of the loan
16. Establishing the interest rate
17. Determine the type of interest rate (fixed or variable)
18. Set the interest rate for the term of the loan
19. Setting repayment terms
20. Determine the repayment period
21. Set the payment frequency
22. Specify the payment due date
23. Establishing security and collateral
24. Determine the type of collateral to be used
25. Obtain a legal description of the collateral
26. Set out the terms of the lien or security interest
27. Finalizing the agreement
28. Review the agreement to ensure it accurately reflects the terms of the loan
29. Make any necessary changes to the agreement
30. Signing and notarizing the agreement
31. Ensure that all parties sign the agreement
32. Have the agreement notarized
33. Understanding the legal implications of a term loan agreement
34. Understand the legal obligations of both parties
35. Understand the rights and remedies of both parties
36. Become familiar with the applicable state and federal laws

Get started

Overview of the key components of a term loan agreement

• Understand the purpose of a term loan agreement and the parties involved
• Familiarize yourself with the sections that make up a term loan agreement, including the loan details, repayment terms, default provisions, and other important elements
• Research the applicable laws and regulations that may affect the terms of the agreement
• When you feel comfortable with the key components of a term loan agreement, you can move on to the next step.

Understand the key terms associated with a term loan agreement

• Read up on and understand the definitions of common loan terms such as “principal”, “interest”, “repayment schedule”, and “collateral”
• Learn about the different loan structures and what each of them entails
• Research the various types of interest rate options, such as fixed, adjustable, and convertible
• Identify the key documents that will be needed to complete the loan agreement
• Understand the implications of the terms in the agreement and the consequences of defaulting
• Once you are comfortable with the terminology and understand the potential implications of the agreement, you can proceed to the next step.

Become familiar with the different types of agreements

• Learn about the structure of a term loan agreement, such as the borrower and lender, the loan amount, the repayment schedule, and security
• Become familiar with the different types of term loan agreements, such as fixed-rate, variable-rate, and adjustable-rate loans
• Understand the differences between term loan agreements and other types of loan agreements, such as revolving credit agreements
• Research local laws and regulations to determine which type of term loan agreement is best suited for the situation
• When you are able to explain the structure and different types of term loan agreements, you can check this step off your list and move on to the next step.

Understand the differences between fixed-rate and variable-rate loans

• Learn the basics of fixed-rate and variable-rate loans, including their differences in interest rates and repayment terms
• Research the cost of each type of loan and determine which could be more beneficial for your needs
• Find out the typical duration of each type of loan and compare the repayment periods
• Gauge the flexibility of fixed-rate and variable-rate loans and determine which could be more suitable for your situation
• Understand the risks associated with each type of loan to make an informed decision
• Once you have researched and familiarized yourself with the differences between fixed-rate and variable-rate loans, you can check this off your list and move on to the next step.

Negotiating the terms of a loan

• Analyze the creditworthiness of the borrower and the purpose of the loan
• Review the interest rate, repayment terms, and other relevant details
• Reach an agreement with the borrower and document it in writing
• Have both parties sign the loan agreement
• When both parties have signed the loan agreement, you can move on to the next step: understanding the purpose of the loan.

Understand the purpose of the loan

• Identify the type of loan being negotiated, such as a term loan, lines of credit, or other types of loans
• Consider the purpose of the loan and the needs of both the lender and the borrower
• Outline the intended use of the loan proceeds and any restrictions on the use of the funds
• Discuss the terms of repayment and other conditions of the loan
• Once all of these points have been agreed upon, you can move on to the next step: determining the desired loan amount.

Determine the desired loan amount

• Review the borrower’s financials and other relevant documents, such as the proposed business plan
• Discuss the loan amount with the borrower to ensure it meets their needs
• Calculate the amount of the loan, taking into consideration all potential expenses
• Confirm the loan amount with the lender and borrower
• Once you have agreed on the loan amount with all parties, you can check this step off your list and move on to negotiating the interest rate and repayment terms.

Negotiate the interest rate and repayment terms

• Contact potential lenders to discuss the interest rate and payment terms they are able to offer
• Ask for separate quotes from each lender
• Compare the quotes and negotiate the best terms possible
• Ensure the terms include things like interest rate, repayment period, repayment schedule, late payment fees, and other important details
• Once a lender has been chosen and the terms have been agreed to, the lender will draw up the loan agreement and send it to you for review
• Once the loan agreement has been reviewed and the terms are acceptable, you can sign the agreement to finalize the deal
• You will know this step has been completed when you have signed the loan agreement and are ready to move on to understanding the types of term loan agreements.

Understanding the types of term loan agreements

• Understand the differences between a secured loan and an unsecured loan.
• Learn about the various types of term loan agreements, including bullet loans, amortized loans, and balloon payments.
• Become familiar with the terms used in loan agreements, such as principal, interest, and collateral.
• Research applicable laws and regulations that affect the loan agreement.

You know you can move on to the next step when you have a good understanding of the different types of term loan agreements, the terms used in them, and the applicable laws and regulations that affect them.

Understand the difference between term loans and credit lines

• Learn the definition of a term loan and a credit line
• Understand the differences between the two types of loans
• Examine the different repayment terms, interest rates, and fees associated with the two types
• Know which type of loan best suits your needs
• When you have a strong understanding of the differences between term loans and credit lines, you can move on to the next step.

Become familiar with the different loan types and their advantages/disadvantages

• Research and acquaint yourself with the different types of term loans available, such as secured, unsecured, and collateralized loans.
• Learn the advantages and disadvantages of each type of term loan.
• Consider the purpose of the loan, the intended use of the funds, and the borrower’s financial circumstances when selecting the appropriate loan type.
• Review the applicable state and federal laws that are applicable to the loan.
• When you feel confident and well-informed about the different types of term loans and their advantages and disadvantages, you can move on to drafting the loan agreement.

Drafting the loan agreement

• Research and review the relevant laws and regulations that apply to the loan agreement
• Create a draft of the loan agreement and include all necessary information, such as the loan amount, interest rate, repayment terms, and any additional provisions
• Have the parties review the agreement to ensure it meets all requirements and any applicable laws
• Finalize the loan agreement and have all parties sign the agreement

When you have completed this step, you will have a finalized loan agreement document ready for review.

Prepare a loan agreement document

• Gather all of the necessary legal documents and forms needed for the loan agreement
• Make sure to include an agreement that outlines the terms of the loan and repayment
• Draft the loan agreement, including all of the relevant information such as the amount of the loan, the interest rate, and the payment schedule
• Ensure that the loan agreement is written in accordance with local and state laws
• Check the document for accuracy
• Have all parties involved in the loan agreement sign the document
• Make sure to keep a copy of the signed loan agreement for all parties involved

When you can check this off your list and move on to the next step:

• Once the loan agreement document has been prepared, checked for accuracy, and all parties involved have signed it, you can move on to the next step which is to identify the parties involved.

Identify the parties involved

• Identify the lender and borrower and include their names, addresses, and contact information in the document
• Research the legal names for each party to ensure accuracy in the document
• Confirm the identity of each party with a valid form of identification
• Once the parties have been identified and the legal names have been confirmed, you can move on to the next step of incorporating all the terms and conditions of the loan.

Incorporate all the terms and conditions of the loan

• Gather all relevant information, such as the loan amount, repayment terms, and other details specified in the loan agreement
• Research applicable laws and regulations to ensure that the loan agreement is in compliance with all applicable laws
• Draft a document that outlines the details of the loan agreement, such as the amount of the loan, repayment terms, interest rate, collateral, and any other conditions associated with the loan
• Ensure that the language used in the loan agreement is clear and unambiguous
• Have the loan agreement reviewed by a lawyer or other qualified professional to ensure that all applicable laws are being followed
• Have both parties sign the loan agreement, making it legally binding

Once the loan agreement has been drafted, reviewed, and signed by both parties, it can be considered complete and ready to be enforced.

Establishing the interest rate

• Set the interest rate for the loan: Consider the borrower’s creditworthiness and the market rate when setting the interest rate.
• Decide on a method to calculate interest: Choose a method to calculate interest (e.g. simple or compound) that is the most advantageous to the lender.
• Specify when interest begins accruing: Make sure the loan agreement states when interest begins accruing, whether it is at the time of closing or after.
• Incorporate the interest rate into the loan agreement: Include the interest rate in the loan agreement for reference.

Once all of the above steps have been completed, you can move on to the next step of determining the type of interest rate (fixed or variable).

Determine the type of interest rate (fixed or variable)

• Review the loan request and the borrower’s financial situation to decide the best type of interest rate for the loan
• Evaluate the risks associated with a fixed or variable interest rate
• Compare the current rates of the two types of interest rate
• Determine which type of rate will be most beneficial in the long run
• Once the type of interest rate is chosen, you can move on to the next step of setting the interest rate for the term of the loan

Set the interest rate for the term of the loan

• Research current market rates to determine a fair rate of interest for the loan
• Consider the borrower’s credit rating, current market conditions, and other factors that could affect the interest rate
• Negotiate the interest rate with the borrower
• Draft the loan agreement to include the agreed-upon interest rate
• Ensure that the interest rate is clearly stated in the loan agreement
• When the interest rate is finalized, you can move on to the next step of setting repayment terms.

Setting repayment terms

• Agree on a repayment schedule that works for both the borrower and the lender
• Determine the frequency of payments (monthly, quarterly, etc.)
• Agree on a payment amount
• Account for future payments, including the principal and interest due
• Set a date for the final repayment
• Include a grace period for missed payments

When you have agreed on the repayment schedule and determined the frequency of payments, payment amounts, and final repayment date, you can check this step off your list and move on to the next step.

Determine the repayment period

• Review the loan agreement’s purpose and the borrower’s ability to repay the loan within a certain period
• Consider the terms of the loan, including the repayment amount, interest rate, and other fees
• Discuss the repayment period with the borrower and come to an agreement
• Include the repayment period in the loan agreement
• Make sure to note any changes to the repayment period in the loan agreement
• Once the repayment period has been determined and included in the loan agreement, this step can be checked off the list and the next step can be moved on to.

Set the payment frequency

• Decide on the payment frequency for the loan. This could be weekly, bi-weekly, monthly, or quarterly.
• Discuss the payment frequency with the borrower and lender and come to an agreement.
• Draft the payment frequency in the loan agreement.
• Once the payment frequency has been specified in the loan agreement, you can check this step off your list and move on to the next step.

Specify the payment due date

• Discuss and agree on a payment due date with the lender
• The payment due date should be included in the loan agreement
• The payment due date should be a specific date, such as the 15th of the month
• Enter the agreed-upon due date in the loan agreement
• Check that the due date is accurate and matches the agreed-upon language
• When the due date is specified, you can check this off your list and move on to the next step of establishing security and collateral

Establishing security and collateral

• Draft a clause specifying the security and collateral to be used in the Term Loan Agreement
• Outline the type of collateral that may be provided as security
• Make sure to include a clause stating that the collateral will be held as security for the repayment of the loan
• When the loan is fully repaid, the collateral must be released to the borrower
• Check off this step once the security and collateral clauses have been drafted and finalized.

Determine the type of collateral to be used

• Research types of collateral that may be used with a term loan agreement.
• Talk to your lender to determine what type of collateral they will accept.
• Consider the value of the collateral, as well as the potential risks associated with it.
• Draft language in the agreement that outlines the type of collateral to be used, and any associated terms and conditions.

Once the type of collateral to be used has been determined, you can move on to obtaining a legal description of the collateral.

Obtain a legal description of the collateral

• Identify the exact property that will be used as collateral for the loan.
• Retrieve the legal description of the property, which can be found in the deed or title documents.
• Have a real estate attorney review the legal description to make sure it is accurate and up-to-date.
• Draft a legal description in the term loan agreement that accurately describes the collateral.
• Once the legal description is obtained and reviewed, you can move on to the next step.

Set out the terms of the lien or security interest

• Draft the security agreement and lien documents: Ensure they accurately capture the rights and interests of the parties involved, including the lender, borrower, and any third-party guarantors.
• Include the legal description of the collateral in the agreement: This should include the type, value, and location of the collateral.
• Discuss any other terms for the security interest or lien: These may include the duration of the interest, how the interest can be released, and any other special instructions.
• When complete, the lien or security interest agreement should be signed by all parties involved.
• Once all parties have signed the agreement, it should be filed with the relevant government agency to be officially recorded.
• Once the agreement is filed, the lender and borrower can move forward with the loan.

Finalizing the agreement

• Review the agreement in its entirety to ensure it accurately reflects the terms of the loan as agreed by both parties
• Ask the other party to sign the agreement, and provide a copy to the other party
• Ensure all necessary signatures have been included
• Notarize the agreement if necessary
• Have each party date the agreement
• Once all these steps have been completed, the agreement is finalized and ready to be used.

Review the agreement to ensure it accurately reflects the terms of the loan

• Carefully review the terms and conditions of the agreement.
• Check that the loan amount, interest rate, repayment schedule, and other important details are accurately reflected.
• Confirm that the agreement meets the requirements of the lender and borrower.
• Verify that the agreement complies with the relevant laws and regulations.
• When you are satisfied that the agreement accurately reflects the terms of the loan, you can move on to the next step.

Make any necessary changes to the agreement

• Read through the agreement to make sure all of the terms, conditions, and definitions reflect the loan agreement you discussed with the lender
• Check to make sure the loan amount, interest rate, repayment period, and any other fees or charges are all accurately indicated in the agreement
• Make any changes that need to be made to the agreement to ensure it accurately reflects the loan agreement
• Once all changes have been made, have both parties review and sign the agreement
• You know you can check this step off your list when all changes are made and the agreement is signed by both parties.

Signing and notarizing the agreement

• Obtain all of the required signatures from all of the parties involved in the term loan agreement
• Have all of the signatures notarized
• Make sure to keep a copy of the agreement with all of the original signatures
• Once all of the signatures are obtained and notarized, the agreement is considered legally binding and can be enforced in a court of law
• You can check this step off your list when all of the parties involved have signed and notarized the agreement.

Ensure that all parties sign the agreement

• Obtain signatures from all parties involved in the loan agreement.
• Ensure signatures are included in the required places on the agreement.
• Once all parties have signed the agreement, you have completed this step and can move on to the next step.

Have the agreement notarized

• Find a professional notary who can witness the signing of the term loan agreement
• Have all parties sign the agreement in the presence of the notary
• The notary will then check the identities of all parties and confirm that they have willingly signed the agreement
• The notary will stamp and sign the agreement to verify that it was notarized correctly
• After the agreement has been notarized, you will know that it is legally binding
• You can then check this off your list and proceed to the next step of understanding the legal implications of a term loan agreement.

Understanding the legal implications of a term loan agreement

• Research and understand all the applicable laws and regulations in your jurisdiction that apply to the loan agreement
• Consult with an attorney to discuss the legal implications of the loan agreement and the obligations of both parties
• Ensure the loan agreement contains all the necessary clauses and provisions to protect both parties
• Once you have a comprehensive understanding of the legal implications of the loan agreement and all relevant laws and regulations, you can move on to the next step.

Understand the legal obligations of both parties

• Research relevant laws and regulations that apply to the loan agreement
• Identify the duties and obligations of each party
• Ensure that all relevant laws and regulations are accurately incorporated into the loan agreement
• Confirm that all parties involved understand and agree to the obligations as outlined in the loan agreement
• Check that all parties are in compliance with applicable laws and regulations

When you have identified the duties and obligations of each party, incorporated applicable laws and regulations into the loan agreement, and confirmed that all parties understand and agree to the obligations outlined in the loan agreement, you can move on to the next step.

Understand the rights and remedies of both parties

• Review the applicable state and federal laws to ascertain the rights and remedies of the parties
• Determine the rights of the lender and borrower in the event of a breach of the agreement
• Understand the remedies available to both parties in the event of a breach
• Note any provisions related to litigation, arbitration, or other dispute resolution mechanisms
• Note any provisions related to indemnification
• Document the rights and remedies of both parties in the loan agreement

You will know when you can check this off your list and move on to the next step when the rights and remedies of both parties have been documented in the loan agreement.

Become familiar with the applicable state and federal laws

• Research the relevant state and federal laws pertaining to loan agreements
• Understand the key elements of a loan agreement that are likely to be affected by the state or federal laws
• Determine whether any state or federal regulations must be followed in drafting the loan agreement
• Review any applicable case law related to loan agreements
• Once you are confident you are familiar with the applicable state and federal laws, check this step off your list and move on to the next step.

FAQ

Q: How does a term loan agreement differ from other loan agreements?

Asked by Amy on June 5th, 2022.
A: A term loan agreement is a type of loan agreement that outlines the conditions and terms of a loan, including the repayment schedule, interest rate, and other terms. It differs from other loan agreements such as revolving credit agreements in that it outlines specific terms of the loan such as the total amount borrowed, interest rate and repayment schedule. Term loans are typically used for the purchase of large assets such as real estate or equipment.

Q: Are there any advantages to drafting a term loan agreement?

Asked by Ryan on October 11th, 2022.
A: Yes, there are several advantages to drafting a term loan agreement. First, it provides an outline of the terms and conditions of a loan before money is exchanged; this allows both parties to evaluate the risks and benefits associated with the loan and come to an agreement that is beneficial for both parties. Additionally, having a clear outline of the terms helps to ensure that all parties are aware of their responsibility with regards to repayment. Finally, having a written document can help to protect both parties in the event of any disputes or disagreements down the line.

Q: What should I include in my term loan agreement?

Asked by Emma on December 20th, 2022.
A: When drafting a term loan agreement, it is important to include key details such as the total amount borrowed, interest rate, repayment schedule, late payment fees, collateral requirements and other relevant conditions. Additionally, it is important to include any other details that are relevant to the loan such as whether the borrower has any rights to prepayment or whether there are any restrictions on how the funds can be used by the borrower. In order for the document to be legally binding it must also include signatures from both parties and date of execution.

Q: What is a collateral requirement?

Asked by Liam on August 15th, 2022.
A: A collateral requirement is a condition that requires a borrower to provide some form of security or guarantee in exchange for receiving a loan. Collateral can take many forms including real estate, vehicles or other personal property that can be used to cover the cost of repayment if necessary. The lender will typically specify which type of collateral they accept when drafting the term loan agreement so it is important for borrowers to be aware of this before entering into an agreement.

Q: How do I determine an appropriate interest rate for my term loan agreement?

Asked by Olivia on April 6th, 2022.
A: The appropriate interest rate for your term loan agreement will depend on several factors including your creditworthiness and market conditions at the time you apply for the loan. Generally speaking, borrowers with better credit histories will be offered lower interest rates than those with poor credit histories so it is important to ensure that your credit score is up-to-date before you apply for a term loan. Additionally, market conditions can also impact interest rates so it is important to research current rates before entering into an agreement with your lender.

Q: Are there any legal considerations I should take into account when drafting my term loan agreement?

Asked by Jacob on September 25th, 2022.
A: Yes, when drafting a term loan agreement it is important to consider any applicable laws and regulations in your jurisdiction as these may vary depending on where you are located. Additionally, you should also consider whether there are any industry-specific laws or regulations that may apply in your particular sector or business model (for example if you are involved in technology or software). It is important to ensure that your document complies with all applicable laws as failure to do so could result in legal action or penalties being taken against you or your business.

Q: What happens if I am unable to make repayments on my term loan?

Asked by Ava on May 4th, 2022.
A: If you are unable to make repayments on your term loan then this could result in serious financial consequences for you and/or your business depending on how much money you owe and what actions have been taken by your lender. Typically lenders will take steps such as issuing late payment notices and possibly charging additional fees before taking more drastic action such as taking legal action against you or repossessing any assets which were provided as collateral for the loan Agreement. It is important therefore to keep up-to-date with repayments and contact your lender at the first sign of difficulty so that they can help you come up with an alternative solution which works best for both parties involved.

Q: What type of clauses should I include in my term loan agreement?

Asked by Noah on November 19th, 2022.
A: When drafting a term loan agreement it is important to include clauses which address any potential issues which may arise during the course of repayment such as late payments or changes in circumstances which could affect either party’s ability to meet their obligations under the Agreement. Additionally, it is also important to include clauses outlining what happens in case of default or bankruptcy which can protect both parties involved in case these scenarios arise during the course of repayment of the Loan Agreement. Finally, you should also consider including clauses relating to confidentiality and dispute resolution so that both parties understand their responsibilities when it comes these matters before entering into an Agreement together.

Q: Are there any tax implications associated with entering into a term loan Agreement?

Asked by Abigail on March 9th 2021.
A: Yes there may be tax implications associated with entering into a term Loan Agreement depending on where you are located (for example if you are based in UK vs USA vs EU). Generally speaking most countries impose taxes on income generated through loans so it’s important to understand what taxes may be applicable prior to entering into an Agreement so that you can factor this into your budgeting when considering taking out a Loan Agreement with another party. Additionally, if you have received funds through a Loan Agreement then you may be required to report this income when filing taxes; again this varies depending on where you are based so it’s important to research applicable tax laws prior to entering into an Agreement with another party

Example dispute

Suing a Lender for a Breach of a Term Loan Agreement

• The plaintiff must prove that the lender has breached the term loan agreement. The breach could include failure to make payments, failure to follow the terms of the loan agreement, or any other breach of contract.
• The plaintiff must also show that they suffered damages as a result of the breach. This could include lost wages, missed payments, or emotional distress caused by the breach.
• The plaintiff may also be able to seek damages for any costs or fees associated with the breach, such as legal fees and court costs.
• The plaintiff may be able to seek punitive damages if the lender acted with gross negligence or intentional disregard for the terms of the loan agreement.
• The plaintiff may also seek a court order to enforce the loan agreement and require the lender to comply with the terms of the loan agreement.
• Settlement may be possible if the lender and the plaintiff are able to negotiate an agreement that is mutually beneficial. The settlement could include a repayment of the loan, a reduction of the loan amount, or an agreement to waive part of the loan.

Templates available (free to use)

Short Term Loan Agreement
Sterling Term Loan Agreement Lending Syndicate To Corporate Borrower
Term Loan Agreement

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