Free Shareholder Loan Agreement

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Shareholder Loan Agreement
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This software has the flexibility to let you quickly create the Shareholder Loan Agreement you want. It does this by providing many options with appropriate defaults.

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Governing Law
State: Q. What is the governing law for a Shareholder Loan Agreement? A. The governing law is the law of the jurisdiction in which the loan will be entered into. It may or may not coincide with the jurisdiction in which the parties reside.
Corporation
Name: Q. Who is the Corporation? A. The Corporation is the party that borrows money from the Shareholder on condition that the money will be repaid in the future. If the Corporation was to liquidate then all loans including the Shareholder loan must be paid before the Shareholders can recover any equity from their shares.
Address:
(eg.  Street, City, State, Zip Code)

Where is the Corporation incorporated?
 
Payment
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Payments are: Q. What are the payment options available? A. There are four options for the method of repayment:
1. The loan can be repaid by "specific periodic amounts", which means that the Shareholder and Corporation agree upon an amount of money which the Corporation will pay to the Shareholder at agreed upon intervals.
2. The "lump sum" payment at the end of the term means that the Corporation pays nothing to the Shareholder until the end of the loan term, at which time the Shareholder repays the entire loan in one payment.
3. The "interest only" option means that the Corporation makes regular payments to the Shareholder that are put toward paying off the interest on the principal amount only, with no portion of the payment going towards the principal amount itself.
4. The "interest and principal" option means that the Corporation makes regular payments to the Shareholder that are put toward paying off both the principal amount and the interest as it is compounded.
First payment to happen:
Payment to start on: (e.g. April 1st, 2005)
Borrower can pay outstanding principal without penalty: Q. Should the Corporation be able to pay the outstanding principal without penalty? A. Granting this option enables the Corporation to pay down the principal at anytime without having to pay an additional sum as a penalty.
Security
Loan is to be secured by security/collateral? Yes No Q. As the Shareholder, should I demand that the Corporation provide security/collateral for the loan? A. You do not need to require collateral, however, in the event the Corporation goes bankrupt, your debt will have priority over debts owed by the Corporation to other lenders if you have "secured" your loan through collateral. This may be preferable if the Corporation does not have enough assets to fully repay all of its debts.
Additional Clauses Click here for tips on drafting your additional clauses.
Number of additional clauses:
First Clause:
Second Clause:
Third Clause:
Fourth Clause:
Miscellaneous
Specified address for payment: