Uploaded by: Marilyn Vargas at February 04 2018 11:41:13.
When it comes to legal forms and templates, the loan agreement template is valuable. Whether you are the person borrowing money or the lender, a contract is a necessity. The use of a loan agreement is prudent in such instances as it protects the borrower. The pre-defined terms of the loan are clear in the document. The paperwork also gives protection for the lender. That’s because the document serves as evidence of the terms of the loan and what the borrower has agreed to repay.
The legal issues surrounding the taking of security are complex, and there are various legal forms that can be used, for example, a chattel mortgage (a mortgage over tangible and moveable property, such as plant and machinery or vehicles), fixed and floating charge, pledge, lien and assignment by way of security. Security over shares is different again, and can be achieved by way of a legal mortgage, an equitable mortgage or an equitable charge.
Where the Lender has requested that the borrower provide guarantors, those guarantors should also carefully read the entire Loan Agreement and their guarantee obligations, and sign where indicated.
The family loan agreement is a template that allows two (2) family members construct a legal contract for the lending of money to a borrower in exchange for being paid back at a later time with interest. Considering the person that is borrowing the money is family, the loan is unsecured which means there are no assets behind the paper agreement. If the borrower does not repay the debt, the lender’s only route to get their money back will be to go through legal action or small claims court.
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agreement between two parties