Simple loan agreement with interest paid annually
THIS AGREEMENT is made and entered into as today (“Effective Date”), by and between borrower, (“the Borrower”) and lender (“the Lender”) (collectively, “the Parties”).
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:
Loan Amount & Interest
The Lender promises to loan £Loan Amount GBP to the Borrower and the Borrower promises to repay this principal amount to the Lender, with interest payable on the unpaid principal at the rate of interest rate percent per annum, calculated yearly not in advance.
Payments
Interim interest payments of £interest payment GBP will be paid on annually from the date of this agreement. This Loan will be repaid in full on end date.
Early Repayment
The Lender may demand early repayment in writing, giving n months months notice. Interest will be calculated to the nearest month. The Borrower may repay the loan early at any time.
Default
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 and interest due under this Agreement at that time to be immediately due and payable.
Governing Law
This Agreement will be construed in accordance with and governed by the laws of Country of England.
Amendments
This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
Severability
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.
Entire Agreement
This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.
