Fill and Sign the Business Warranties Form

Application and Loan Agreement for a Business Loan with Warranties by Borrower To: _________________________ (Name of Lender) _____________________________________ _____________________________________ (Address of Lender) The undersigned, _________________________ (Name of Business Borrower) , a corporation organized and existing under the laws of the state of ______________, with its principal office located at ________________________________________________________ ___________________________________ (street address, city, state, zip code) , referred to herein as Borrower , does hereby apply to _______________________ (Name of Lender) , a Banking corporation organized and existing under the laws of the of ______________, with its principal office located at ________________________________________________________ ____________________________ (street address, city, state, zip code) , referred to herein as Bank, for a Loan to be evidenced by a promissory note with substantially the following provisions:  Amount of Note: $____________;  Date of note: ____________; and  Term of Loan: ____________ months. Borrower, in consideration of Bank making such Loan, warrants, represents, and agrees as follows: 1. Performance According to Provisions of Section 10 Borrower agrees to the provisions and makes the warranties set forth in Section 10 . 2. Representations of Business Operations Borrower represents that the Business operations (the Business ), owned and operated by Borrower are as follows: (briefly describe) ______________________________________ ___________________________________________________________________________, and that the Business is a Corporation organized and existing under the laws of the state of __________________ (name of state) , and that said Corporation is in good standing under the laws of the State of ___________________ (name of state) . 3. Proceeds of Loan to be used for Business Borrower agrees that the Business will be continued and that the proceeds of the Loan will be used only in connection with the Business and for the following purposes: (describe) ____________________________________________________________________________ ____________________________________________________________________________ . 4. Charge for Loan Borrower agrees that on or before _____________________ (date) , and while said Loan is in effect, Borrower will pay to Bank for application against the Loan ______% of the net profits of Borrower's Business for the prior ___________________________ (time) period. Net Profits as here used shall mean profits before depreciation, but less taxes and less the regular principal payments made on the Loan during the period concerned (and less the withdrawals, including salaries, authorized in Section 5 , if not already deducted in the computation of profits). 5. Withdrawals from Business Borrower agrees that withdrawals, compensation, or salary paid, in cash or otherwise, from the Business shall not be in excess of the following amounts for the persons indicated, nor will amounts in excess of the limits indicated be paid to any other person. A. _______________________ Monthly Amount: $_______________; (Name of Employee/Officer) B. _______________________ Monthly Amount: $_______________; (Name of Employee/Officer) C. _______________________ Monthly Amount: $_______________; (Name of Employee/Officer) 6. Current Assets of Business Borrower agrees that, in the operation of the Business, current assets will be maintained in excess of current liabilities by at least $____________, with current assets and liabilities to be determined in accordance with accepted accounting practice. 7. Investment in Fixed Assets Borrower agrees that, in the operation of the Business, no investment in fixed assets in excess of $____________ in any 12-month period will be made without the prior written consent of Bank. 8. Subordinated Indebtedness Borrower will cause the following present indebtedness of Borrower to be subordinated to the Loan applied for by a subordination agreement satisfactory to Bank: _____________________________ Amount: $________________. (Name of Creditor of Borrower) 9. Collateral for Loan As security for the Loan, Borrower will deliver to Bank the following collateral or duly- executed instruments of security or guaranty, and will comply with all terms, conditions, and provisions set forth in the instruments: (specify instruments) __________________________ ____________________________________________________________________________ ____________________________________________________________________________. 10. Provisions and Warranties A. Borrower warrants that all financial statements, profit and loss statements, statements as to ownership, and other statements given to Bank are true and correct and that Borrower has full and complete title to any and all property that may be pledged or mortgaged to Bank or otherwise hypothecated as security for the Loan. B. Borrower will maintain executive personnel and management satisfactory to Bank. C. Borrower will keep books and records in accordance with accepted accounting practice and will deliver to Bank such financial and profit and loss statements (in form satisfactory to Bank) as Bank may request from time to time and will permit a representative on behalf of Bank to examine and audit the books of the Business during normal Business hours, on reasonable prior notice. Borrower will inform Bank of any litigation involving Borrower, the adverse determination of which might substantially prejudice the payment of the Loan. D. Without consent of Bank, and while any sum of the Loan here applied for remains unpaid, Borrower, in the operation of the Business, will not incur other indebtedness for borrowed money, or lend money, or mortgage, assign, hypothecate, encumber, or otherwise grant any security interest in any of the assets of the Business except to Bank and will not sell, transfer, or assign any assets except in the ordinary course of Business. For this purpose, the sale of accounts receivable shall be deemed the incurring of indebtedness for borrowed money. E. Borrower will not pay, without the prior written consent of Bank, any dividends on any of its outstanding shares or purchase or retire any of its shares, or alter or amend its capital structure. F. Borrower will maintain adequate fire, public liability, and other insurance and will take out and keep in force such insurance as Bank from time to time may require and, on request of Bank, will deliver to it the policies concerned or a schedule of all insurance in force as Bank may determine from time to time. All policies covering property given as security for the Loan shall have a loss payable clause in favor of Bank. G. This Agreement shall continue as long as the Loan or any part of it or renewal or extension remains unpaid. No consent or waiver under this Agreement shall be effective unless in writing. No waiver of any breach or default shall be deemed a waiver of any breach or default subsequently occurring. H. Any failure on the part of Borrower to pay any sum of interest or principal of the Loan when due, or any breach or default by Borrower of or under any term, condition, provision, warranty, or representation made in this Loan Agreement, any appointment of a receiver or trustee as to a substantial portion of the assets of Borrower, or any levy of attachment, execution, or similar process that shall not be released within _______ days, any act on the part of Borrower of insolvency, general assignment for the benefit of creditors, voluntary filing under any Bankruptcy law or other law for the benefit of creditors, or the filing of an involuntary petition in Bankruptcy which is not dismissed for a period of _______ days, at the option of Bank, shall make immediately due and payable all sums loaned under this Agreement, regardless of the terms of any promissory note evidencing the Loan. Borrower has executed this Application at ___________________________ (Name of City and State) on ___________________ (date) . ___________________________________ (Name of Corporation) By ______ ________________________ _______________________________ (P rinted Name & Office in Corporation) ________________________________ (Signature of Officer) Attest: _______________________________ (Printed Name of Corporate Secretary) _______________________________ (Signature of Secretary)