Free Loan Agreement

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Free Loan Agreement

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Loan Agreement

Collateral


Collateral



Frequently Asked Questions
When should collateral be used?Collateral is an asset or property offered by the borrower to secure repayment of a loan.

Securing the Loan Agreement with collateral allows the lender to receive compensation if the borrower fails to make payments. It's most useful when there is a high risk the borrower will default or there is a substantial amount being loaned.

If the loan is not secured with collateral, the lender will need to go to court before seizing any of the borrower's assets.
Yes, it is a good idea for the lender to register their interest in the collateral on the Personal Property Securities Register (PPSR). Registering their interest gives the lender a better chance of recovering any unpaid loan amounts if the borrower defaults. The lender can register their interest on the PPSR online.

If the collateral being used is land, a house or other building, or a ship longer than 24 metres the lender's interest cannot be registered on the PPSR.
Can I use real estate or land as collateral?No, you should not use real estate or land as collateral. This Loan Agreement will not give the lender a valid security interest in the real estate or land.


Your Loan Agreement

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Loan Agreement Page of
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LOAN AGREEMENT

THIS LOAN AGREEMENT (this "Agreement")

BETWEEN:


__________ of ______________________________________
(the "Lender")

OF THE FIRST PART

AND


__________ of ______________________________________
(the "Borrower")

OF THE SECOND PART

IN CONSIDERATION OF the Lender loaning certain monies (the "Loan") to the Borrower, and the Borrower repaying the Loan to the Lender, both parties agree to keep, perform and fulfil the promises and conditions set out in this Agreement:

  1. Loan Amount & Interest
  2. The Lender promises to loan $____________________NZD to the Borrower and the Borrower promises to repay this principal amount to the Lender, without interest payable on the unpaid principal, beginning on 29 March 2020.
  3. Payment
  4. This Loan will be repaid in full on 29 March 2020.
  5. Default
  6. Notwithstanding anything to the contrary in this Agreement, if the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may declare the principal amount owing under this Agreement at that time to be immediately due and payable.
  7. Governing Law
  8. This Agreement will be construed in accordance with and governed by the laws of New Zealand.
  9. Costs
  10. The Borrower shall be liable for all costs, expenses and expenditures incurred including, without limitation, the complete legal costs of the Lender incurred by enforcing this Agreement as a result of any default by the Borrower and such costs will be added to the principal then outstanding and shall be due and payable by the Borrower to the Lender immediately upon demand of the Lender.
  11. Binding Effect
  12. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest, and notice of protest.
  13. Amendments
  14. This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
  15. Severability
  16. The clauses and paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
  17. General Provisions
  18. 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.
  19. Entire Agreement
  20. 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 this

SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________.

   


_____________________________
__________

     


SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________.

   


_____________________________
__________

     
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