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Loan Agreement Form

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LOAN AGREEMENT

(Loan No. )

THIS LOAN AGREEMENT ("this Agreement") is made and entered into this day of , , by and between , a corporation ("Lender"), with its Home Office in , County, , and , ("Borrower"), a general partnership formed under law composed of (""), a Mississippi corporation, and (""), a corporation.

W I T N E S S E T H:

WHEREAS, , a corporation, owns a ("the ") located on a acre site in Mississippi, which manufactures ; and

WHEREAS, in order to obtain funds to be used in the acquisition of said and the thirty-one acre site on which the is located, Borrower has accepted, and Lender has agreed, subject to the terms and conditions of this Loan Agreement, to make contemporaneously with the execution of this Loan Agreement, a secured loan ("the Loan") in the principal amount of Dollars ($) to be advanced in one installment upon satisfaction of certain express conditions;

NOW, THEREFORE, in consideration of the mutual promises set forth herein and in consideration of the extension of credit to the Borrower and of the promises and undertakings herein set forth, the parties hereto agree as follows, it being expressly understood that all covenants, terms, conditions and undertakings set forth in this Agreement will survive and remain in full force and effect until such time as the principal amount of and all interest on any indebtedness owing by the Borrower to the Lender shall have been repaid in full and no additional extensions or advances have been requested.

ARTICLE I

Terms and Definitions

As used in this Agreement, the following terms shall have the meaning set forth opposite each of them:

(a) Assets: Anything owned by Borrower and/or any right or interest therein of Borrower that would be shown on a consolidated balance sheet of Borrower prepared in accordance with GAAP.

(b) Borrower: , a partnership formed under the laws of the State of .

(c) Business Day: Any day other than a Saturday, Sunday or other day on which Lender is closed at its home office in Boston, .

(d) Cash Flow Available for : ...

(e) Cash Flow Coverage Ratio: The ratio of Cash Flow Available for to .

(f) Closing: The execution and delivery of this Loan Agreement and the Security Documents, certificates, instruments and agreements contemplated to be executed contemporaneously with this Loan Agreement.

(g) Commitment Letter: That certain commitment letter, dated , from Lender to and ...

(h) Consolidated Basis: Assets, liabilities, and equities of Borrower and any Subsidiary shall be deemed to be one for accounting purposes...

(i) Current Assets: Assets owned by Borrower which in Borrower's ordinary and normal course of business will be converted into cash within a year...

(j) Current Liabilities: Debts, liabilities or other obligations of Borrower which must be paid or satisfied within a year...

(k) Current Ratio: Ratio of Current Assets to Current Liabilities.

(l) Deed of Trust and Security Agreement: ... conveying certain real property in County, Mississippi, to , Trustee ...

(m) Default(s): Any event or condition, the occurrence of which is, or which would, with the lapse of time or the giving of notice or both, become an Event of Default.

(n) ERISA: The Employment Retirement Income Security Act of 1974, as amended...

(o) Event(s) of Default: See Paragraph 7.01 hereof.

(p) Financing Statements: ...

(q) Funded Debt or Long Term Debt: ...

(r) GAAP: Generally accepted accounting principles ...

(s) Governmental Authority: ...

(t) Hazardous Substances: ...

(u) Improvements: ... operation of the and Land.

(v) Indebtedness: ...

(w) Internal Revenue Code: ...

(x) Investment: ...

(y) Land: ...

(z) Legal Requirements: ...

(aa) Lender: and/or its successors or assigns.

(bb) Liabilities: ...

(cc) Loan: The loan of $ to be made by Lender...

(dd) Loan Agreement: This Loan Agreement...

(ee) Material Supply Agreement: An agreement to be entered into by Corporation and Borrower...

(ff) Mortgaged Property: ...

(gg) Net Income: ...

(hh) Net Tangible Assets: Tangible Assets less Current Liabilities.

(ii) Net Worth: All Assets less all Liabilities.

(jj) Note: That certain Promissory Note of even date herewith executed by Borrower to the order of the Lender in the principal amount of Dollars ($) ...

(kk) Obligations: ...

(ll) Partners: and .

(mm) Permitted Encumbrances: ...

(nn) Person: ...

(oo) Reportable Event: ...

(pp) Security: ...

(qq) Security Documents: ...

(rr) Hancock Debt: ...

(ss) Hancock Debt Service: All cash interest and principal payments on Debt.

(tt) Subordinated Debt: ...

(uu) Subsidiary: ...

(vv) Tangible Assets: ...

(ww) Total Capital: ...

(xx) Working Capital: Current Assets less Current Liabilities.

(yy) Working Capital Facility: A loan secured by the inventory and/or accounts receivable of Borrower.

(zz) Hancock Funded Debt: ...

ARTICLE II

Disbursement of the Loan and the Note

2.01 Disbursement. Dollars ($) of the Loan shall be disbursed subject to and in accordance with the following conditions and limitations at the Closing, but no later than

2.02 The Note. The Loan shall be evidenced by a promissory note (the “Note”) of even date herewith executed by the Borrower and payable to the order of Lender setting forth an indebtedness in the principal amount of Dollars ($).

2.03 Interest. The interest rate on the unpaid principal balance of the Note shall be 10.07% per annum so long as the Note is not in default. ...

2.04 Use of Proceeds. The proceeds disbursed pursuant to this Loan Agreement shall be used solely to finance the purchase of the Mill and Land.

2.05 Prepayment. ...

2.06 Commitment Fee. In consideration for Lender's commitment to make the Loan to Borrower, Borrower has paid to Lender, upon issuance of the Commitment Letter, a commitment fee of $72,500.00.

2.07 Offset. ...

2.08 Good Year - Bad Year Provisions.

(a) Good Year Prepayment. ...

(b) Bad Year Deferral. If Borrower's net income determined in accordance with GAAP are less than Dollars ($) for any fiscal year ...

(c) Limitation on Good Year Prepayments. ...

ARTICLE III

Warranties and Representations

3.01 Warranties and Representations of Borrower. ...

(a) Organization of Borrower. ...

(b) Authorization and Binding Effect. ...

(c) No Breach of Charter, By-Laws or other Agreements. ...

(d) Financial Statements. ...

(e) No Adverse Changes. Since , ...

(f) Litigation. ...

(g) Operation in Accordance with Law. ...

(h) Condemnation. ...

(i) Title to Mortgaged Property. ...

(j) Priority of Lender's Security Interest. ...

(k) Regulation G: Use of Proceeds. ...

(l) Governmental Consent, etc. ...

(m) Business Names. Borrower only does business as .

(n) Tax Returns. ...

(o) Leases. ...

(p) ERISA. ...

3.02 Disclosure by Borrower to Lender. ...

ARTICLE IV Covenants

4.01 Affirmative Covenants. ...

(a) Payment of Taxes. ...

(b) Legal Actions to which Lender Made Party. ...

(c) No Other Liens. ...

(d) Financial Statements. ...

(e) Current Ratio. Borrower shall have a current Ratio of at least 1.5 to one ...

(f) Cash Flow Coverage Ratio. Borrower shall have a Cash Flow Coverage Ratio of at least 1.75:1 ...

(g) Net Tangible Assets to Hancock Funded Debt Ratio. ...

(h) Net Worth and Restrictions on Distributions. ...

(i) Limitation on Debt. ...

(j) No Change in Subordinated Debt Terms or in Ownership. ...

(k) Lease Obligations. ...

(l) Merger or Consolidation. ...

(m) Transfer of Security. ...

(n) Encumbrances. ...

(o) Payments on Loans to Partners. ...

(p) Material Supply Agreement. ...

(q) Other Data. ...

(r) Partnership and Corporate Existence, etc. ...

(s) Inspection. ...

(t) Compliance with Laws. ...

(u) Insurance. ...

(v) Bookkeeping. ...

(w) Payments Under the Note. ...

(x) Financial Accounting Practices. ...

(y) Repair, Etc. ...

4.02 Negative Covenants. ...

(a) Distributions. ...

(b) Merger. ...

(c) Loans. ...

(d) No Change in Business. ...

(e) Assign Rents. ...

(f) Replacement of Equipment. ...

(g) Liens. ...

(h) Guaranty. ...

(i) Sale. ...

(j) Fiscal Year. ...

(k) No Change of Shareholders. ...

(l) Leases. ...

(m) Affiliate Transaction. ...

ARTICLE V

Hazardous Substances

5.01 Representations, Covenants, and Warranties. ...

(a) Borrower has had performed reasonable investigations...

(b) ...

(c) ...

(d) ...

5.02 Indemnification. ...

5.03 Release of Land Containing Hazardous Substances. ...

ARTICLE VI

General Terms and Provisions

6.01 Performance at Borrowers Expense. ...

6.02 Approval of Lender and Further Assurances. ...

6.03 No Waiver. ...

6.04 Entire Agreement; Modification. ...

6.05 Severability and Construction. ...

6.06 Rights, Remedies, and Recourses Cumulative. ...

6.07 Successors and Assigns. ...

6.08 Notices.

If to Lender to:

Attn.:

Telecopy No.:

If to Borrower to:

Attn:

Telecopy No.:

6.09 Participations. ...

6.10 Lender's Right to Perform the Obligations. ...

6.11 Headings. ...

6.12 Exhibits and Appendices. ...

6.13 Supplement to Deed of Trust. ...

6.14 Credit Support Agreement. ...

6.15 Consent to Jurisdiction. ...

6.16 Multiple Counterparts. ...

6.17 Tax Reimbursement Agreement. ...

6.18 Right to Cure Certain Financial Covenant Defaults. ...

ARTICLE VII

Events of Default Remedies

7.01 Events of Default. ...

7.02 Remedies. ...

ARTICLE VIII

Inspection

8.01 Inspection. ...

8.02 No Duty to Inspect. ...

ARTICLE IX

Miscellaneous Provisions

9.01 Annual Certification. ...

9.02 Payments of Costs and Fees. ...

9.03 No Assignment by Borrower. ...

9.04 Survival of Representations and Warranties. ...

9.05 Governing Law. ...

9.06 Waiver. ...

9.07 Records. ...

9.08 Indemnification. ...

9.09 No Recourse Against Partners. ...

EXECUTED as of the date first above written.

A General Partnership

By:

By:

Title:

By:

By:

Title:

STATE OF

COUNTY OF

Personally appeared before me... ...

Notary Public

My Commission Expires:

STATE OF

COUNTY OF

Personally appeared before me... ...

Notary Public

My Commission Expires:

EXHIBIT "B"

TO LOAN AGREEMENT BETWEEN AND

a) Purchase money security interest(s) on any capital asset (excluding Land) of the Borrower or any of its Subsidiaries ...

b) Liens securing taxes, assessments or governmental charges ...

c) Title to all minerals within the Land ...

d) Right-of-Way to State Highway Commission dated , recorded in Land Deed Book at Page ...

e) Rights of railroad company servicing siding ...

f) Locations of power poles and lines ...

g) Location of chain link fence and gravel parking area and driveway ...

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What a Loan Agreement Form Is and when it's used

A Loan Agreement Form defines the contractual relationship where a lender provides funds to a borrower and records repayment obligations, interest, collateral, and remedies for default. It sets principal amount, interest calculation, payment schedule, prepayment rights, representations, warranties, and events of default. Professional forms contain signature blocks for all parties, optional notarization or witness sections when required by state law, and attachments for security instruments or guarantor commitments to support enforcement and lien perfection.

Why documenting loan terms matters

A written Loan Agreement Form clarifies repayment obligations, allocates risk, and creates enforceable remedies. Clear terms reduce disputes, support collection and collateral enforcement, and provide evidence for courts or regulatory reviews while aligning expectations for borrower and lender responsibilities.

Why documenting loan terms matters

Who prepares and signs Loan Agreement Forms

Typical users who prepare or sign Loan Agreement Forms include banks, credit unions, private lenders, borrowers, attorneys, and loan officers handling secured and unsecured loans.

  • Real estate lenders and mortgage brokers managing property-secured loans nationwide.
  • Small-business owners and commercial lenders documenting working capital or equipment financing.
  • Individual borrowers and private lenders for personal loans, family lending, or peer-to-peer agreements.

Clear role assignment reduces signing delays and ensures the correct signature authority is recorded for later enforcement or servicing.

Representative signer roles

Lender — VP

A commercial lender or credit officer prepares the loan agreement to define credit limits, collateral requirements, repayment schedule, covenant monitoring, and default remedies. The officer verifies borrower financials, ensures documentation complies with policy, and coordinates closing, funding, and lien perfection steps.

Borrower — Individual

An individual borrower reviews repayment terms, interest calculation, prepayment penalties, and security language. They must provide accurate identification, income documentation, and consents; borrowers should confirm governing state and seek counsel for complex collateral or cross-default provisions.

Essential data fields to include

Loan Amount: Principal amount in U.S. dollars
Interest Rate: Annual percentage rate and compounding
Payment Schedule: Dates and amounts for repayments
Maturity Date: Final payment due date
Security/Collateral: Assets securing the loan
Signatures: All parties sign and date

Key risks and penalties from errors

Invalid Signature: May render agreement unenforceable
Incorrect Amount: Payment disputes and collection issues
Missing Notary: State law may require acknowledgment
Usury Violation: Civil penalties and rescission risk
Ambiguous Terms: Increases litigation and enforcement costs
TIN Errors: Trigger IRS backup withholding

Common preparation mistakes to avoid

  • Using vague repayment language such as 'due upon demand' without defining notice periods or default acceleration clauses leads to disputes and uncertain enforcement outcomes.
  • Failing to identify governing law and jurisdiction allows counterparties to contest venue, increasing legal costs and delaying remedies, especially in interstate loans.
  • Omitting collateral descriptions or failing to attach security agreements prevents lien perfection and can leave lenders unsecured despite contractual promises.
  • Providing incorrect borrower identification or mismatched names between IDs, bank accounts, and agreement voids collection remedies and may trigger backup withholding.

Primary sections a professional form should include

Core sections of a professional Loan Agreement Form ensure clarity on payment, collateral, default, and legal protections for both parties.

Recitals

Background facts that explain the purpose of the loan, identify the parties and related prior agreements, and clarify why the loan is being made. Use precise facts and dates to avoid disputes about intent.

Loan Terms

Defines principal, interest rate calculation, payment frequency, amortization, and prepayment options. Specify APR method, late fees, grace periods, and rounding rules to reduce disputes over amounts owed.

Security

Describes collateral, security interest, perfection steps, and remedies on default. Include collateral description, filing obligations (UCC-1), storage location for pledged assets, and insurance requirements.

Representations

Statements by each party about authority, solvency, ownership of collateral, and accuracy of financial statements. Clear representations limit later claims of misrepresentation or fraud.

Covenants

Affirmative and negative covenants set borrower conduct expectations: financial reporting, debt limits, asset transfers, and maintenance of insurance. Define cure periods and notice requirements for breaches.

Default & Remedies

Events of default, notice and cure procedures, acceleration, interest on defaulted amounts, collection costs, and foreclosure or repossession processes. Be explicit about fees and repossession steps.

Step-by-step: complete the Loan Agreement accurately

Complete a Loan Agreement Form in clear stages to reduce errors and ensure enforceability before signing and execution.

  • 01
    Gather Documents: Collect IDs, bank statements, collateral paperwork
  • 02
    Draft Terms: Enter principal, rate, schedule, and security terms
  • 03
    Review Legal: Have counsel confirm governing law and enforceability
  • 04
    Sign & Notarize: All parties sign; notarize if state requires

Configure an online signing workflow

Configure an online Loan Agreement workflow to automate routing, reminders, authentication, and storage for efficient signing and recordkeeping.

Field Configuration
Signer Authentication Email link; optional SMS code; KBA for high-risk
Routing Order Sequential or parallel signer order
Reminders & Escalation Auto-reminders and escalation emails
Storage & Export PDF/A archive to cloud or local

Digital signing and submission: platform needs

Digital signing and eSubmission require compatible file formats, signer authentication options, and secure storage to meet legal and regulatory standards.

  • File Formats: PDF, DOCX, and fillable forms supported
  • Integrations: Connectors for CRM, ERP, cloud storage
  • Authentication: Email, SMS, SSO, and advanced options

Representative eSignature vendor comparison for loan workflows

Basic pricing and feature availability for common eSignature vendors; signNow is listed first per standard comparison layout.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Varies Varies Varies Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Varies Varies Varies Varies
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Key dates and timing elements to specify

Clear dates and notice periods in the agreement control funding, repayment, default procedures, and applicable limitation periods.

Effective Date:

Date when obligations begin and interest accrual starts

Funding Date:

Date funds are disbursed to borrower

First Payment Due:

Date of first scheduled repayment under amortization

Default Notice Period:

Typically 10–30 days unless otherwise specified

Statute of Limitations:

Varies by state; often 3–6 years for contract claims

Where to send and how to file executed agreements

After signing, distribute executed copies to parties, retain originals for servicing, and record or file only when collateral or public notice is required.

  • To Lender: Deliver original signed copy for servicing records
  • To Borrower: Provide fully executed copy for borrower files
  • To Notary / Recorder: Record only if mortgage or security instrument attached
  • To Secured Party: File UCC-1 financing statement to perfect lien

Real examples of digital loan agreements in practice

Case examples show operational benefits and user experiences when loan agreements move to digital signing and organized storage.

Optica Ventures LLC

Optica Ventures replaced paper promissory notes with digital Loan Agreement Forms to reduce turnaround time and centralize recordkeeping across deal teams.

  • They used signNow for simple, mobile signing.
  • Brian Fitzgibbons says the interface is simple and easy-to-use for their team; more importantly, it is just as easy for customers, leading to faster signings, fewer follow-ups, and clearer audit trails for compliance purposes.

Martin Properties

Martin Properties digitized lease financing and owner loans with online Loan Agreement Forms to avoid in-person closings and speed tenant and vendor onboarding.

  • Mobile signing enabled remote closings and faster processing.
  • Tim Martin reports he can process and execute all documents online with 100% compliance and built-in security, enabling efficient distribution to required parties whether on mobile or offline.

Frequently asked questions about completing and signing loan agreements

Practical answers for common questions about validity, notarization, amending, and retention of Loan Agreement Forms, including digital signing concerns.


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