Free Shareholder Loan Agreement

Free Shareholder Loan Agreement

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Shareholder Loan Agreement

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  2. Email, download or print instantly
  3. Just takes 5 minutes

Shareholder Loan Agreement

Create your Free Shareholder Loan Agreement

Create your Free Shareholder Loan Agreement

Frequently Asked Questions

What is a lump-sum payment?"Lump-sum payment at end of term" means that the corporation pays nothing to the Shareholder until the end of the loan term, at which time the corporation repays the entire loan in one payment.What are specific payment amounts?"Specific payment amounts" refers to the specific amount of money which the corporation will repay to the Shareholder at agreed upon intervals.What is a principal and interest payment?"Principal and interest" means that the corporation makes regular payments to the Shareholder that are put towards paying off both the principal amount and the interest as it is compounded. At the end of the term, there will be no amount outstanding.What is an interest only payment?"Interest only" means that the corporation makes regular payments to the Shareholder that just pays the current interest on the principal with no portion of the payment going towards the principal amount itself. At the end of the term, the corporation will then pay off the whole amount of the principal.

Your Shareholder Loan Agreement

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SHAREHOLDER LOAN AGREEMENT

THIS SHAREHOLDER LOAN AGREEMENT (this "Agreement") dated this 25th day of August, 2016

BETWEEN:

_______________________________ of __________
(the "Shareholder")

OF THE FIRST PART

and

_______________________________ of __________
(the "Corporation")

OF THE SECOND PART

BACKGROUND:

  1. The Corporation is duly incorporated in the Commonwealth of Kentucky.
  2. The Shareholder holds shares in the Corporation and agrees to loan certain monies (the "Loan") to the Corporation.

IN CONSIDERATION OF the Shareholder providing the Loan to the Corporation, and the Corporation repaying the Loan to the Shareholder, both parties agree to keep, perform, and fulfill the promises, conditions and agreements below:

  1. Loan Amount & Interest
  2. The Shareholder promises to loan _______________________ ($ ____________) USD, to the Corporation and the Corporation promises to repay this principal amount to the Shareholder at such address as may be provided in writing, with interest payable on the unpaid principal at the rate of 0 percent per annum, calculated yearly not in advance.
  3. Payment
  4. This loan is repayable in full on August 25, 2016.
  5. At any time while not in default under this Agreement, the Corporation may pay the outstanding balance then owing under this Agreement to the Shareholder without further bonus or penalty.
  6. Default
  7. Notwithstanding anything to the contrary in this Agreement, if the Corporation defaults in the performance of any obligation under this Agreement, then the Shareholder may declare the principal amount owing under this Agreement at that time to be immediately due and payable.
  8. Further, if the Shareholder declares the principal amount owing under this Agreement to be immediately due and payable, and the Corporation fails to provide full payment, interest in the amount of 0 percent, calculated yearly not in advance, will be charged on the outstanding amount, commencing the day the principle amount is declared due and payable, until full payment is received by the Shareholder.
  9. Governing Law
  10. This Agreement will be construed in accordance with and governed by the laws of the Commonwealth of Kentucky.
  11. Costs
  12. All costs, expenses and expenditures including, and without limitation, the complete legal costs incurred by enforcing this Agreement as a result of any default by the Corporation, will be added to the principal then outstanding and will immediately be paid by the Corporation.
  13. Assignment
  14. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the Corporation. The Corporation waives presentment for payment, notice of non-payment, protest, and notice of protest.
  15. Amendments
  16. This Agreement may only be amended or modified by a written instrument executed by both the Corporation and the Shareholder.
  17. Severability
  18. The clauses and paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any part of this Agreement is held to be invalid, this invalidity will not affect the operation of any other part of this Agreement.
  19. General Provisions
  20. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  21. Entire Agreement
  22. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.

IN WITNESS WHEREOF , the parties have duly affixed their signatures under hand and seal on this25th day of August, 2016.



___________________________________
Witness

_______________________________

Per: ___________________________ (Seal)



___________________________________
Witness



_______________________________
_______________________________

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