A shareholder loan agreement is a legal document that outlines the terms and conditions under which a shareholder lends money to a corporation. It is essential to have a well-drafted agreement to protect the interests of both the lender and the borrower. This guide will provide you with the necessary information to create a professional and effective free shareholder loan agreement template.
Key Elements of a Shareholder Loan Agreement
1. Parties: Clearly identify the parties involved in the loan. This includes the name of the lending shareholder and the corporation.
2. Loan Amount: Specify the exact amount of the loan being made.
3. Interest Rate: Indicate the interest rate that will be charged on the loan. This can be a fixed or variable rate.
4. Repayment Schedule: Outline the terms for repaying the loan, including the due date, frequency of payments, and any grace periods.
5. Security: If applicable, specify any collateral or security that the shareholder is providing to secure the loan.
6. Default: Define what constitutes a default on the loan and outline the consequences of default, such as acceleration of the debt or foreclosure on any collateral.
7. Governing Law: Specify the governing law that will apply to the agreement.
8. Dispute Resolution: Outline the procedure for resolving any disputes that may arise between the parties.
Designing a Professional Free Shareholder Loan Agreement Template
1. Formatting: Use a clean and professional font, such as Times New Roman or Arial. Ensure that the text is easy to read and that the margins are consistent.
2. Headers and Footers: Include a header with the names of the parties and the date of the agreement. In the footer, include the page number and a copyright notice.
3. Paragraph Structure: Use clear and concise language. Each paragraph should focus on a single point or idea.
4. Bullet Points: Use bullet points to list items, such as the repayment schedule or the terms of default.
5. Tables: Use tables to organize information, such as the loan repayment schedule or the terms of the security.
6. Signatures: Ensure that there is a space for both parties to sign the agreement. Include a place for witnesses to sign as well.
Sample Free Shareholder Loan Agreement Template
SHAREHOLDER LOAN AGREEMENT
This Shareholder Loan Agreement (the “Agreement”) is made and entered into as of [Date] by and between [Lender’s Name] (the “Lender”) and [Corporation’s Name] (the “Corporation”).
1. Loan Amount: The Lender hereby lends to the Corporation the sum of [Loan Amount] Dollars ($[Loan Amount]).
2. Interest Rate: The Corporation shall pay interest on the Loan at the rate of [Interest Rate] per annum.
3. Repayment Schedule: The Corporation shall repay the Loan in [Number] equal installments of [Amount] Dollars ($[Amount]) each, due and payable on the [Day] day of each [Month], beginning on [Date].
[Include additional sections as needed, such as security, default, governing law, and dispute resolution.]
[Signatures]
Note: This is a basic sample template and may not address all potential issues. It is recommended that you consult with an attorney to ensure that your agreement is tailored to your specific needs.
