In addition, you must include a section describing all warranty information if you have one. A guarantor is also known as a co-signer. This person or company agrees to repay the loan in the event of a late payment from the borrower. They can add more than one guarantor to the loan agreement, but they must accept all the terms stipulated in the loan, just like the borrower. Just as you have registered the borrower`s information, you must include the information of each guarantor and he must sign the agreement. They must provide their full legal name and address. If you don`t include a deposit, you don`t need to include this section in the loan agreement. Finally, you must include a section containing the date and place of the signing of the agreement. In this section of the loan agreement, you need to provide different information, for example. B the effective date of the agreement, the state in which a judicial procedure is to take place and the particular county within that state. This is important because there are details about when the loan contract is active and prevents it from moving elsewhere in case of dispute or non-payment on the contract.
If a borrower does not pay an amount when it matures in accordance with the loan agreement, this is a delay event. Lenders are very unlikely to negotiate. It may be possible for the borrower to request a reasonable additional period of time in which the amount owed must be paid before the offence becomes a delay event. Normally, such an additional delay would not be more than a few working days. By definition, loan contracts contain a tacit contract on a fair and bona fide contract. However, the finding of credit obligation breach is based exclusively on the written contract, not on personal relationships or help. In most cases, credit documents are “disclosed” and not “disclosed.” For this reason, loan documents are usually lengthy. Credit agreements often contain minimum or maximum limits that must be maintained. You may have a loan agreement that requires certain ratios to be calculated quarterly, while a different ratio should only be calculated once a year. In the event of a delay, the lender has a number of options set out in the “acceleration clause” of the loan agreement. This usually includes the possibility: in the “Interests” section, you include information for any interest.
If you don`t calculate interest, you don`t need to include this section. However, if you are, you must specify when the interest on the loan will be collected and whether the interest will be simple or assembled. Simple interest is calculated on the principal unpaid, while compound interest is calculated on unpaid principal and any unpaid interest.