This bond agreement template has 5 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our bond agreement template:
BOND AGREEMENT This Bond Agreement (the "Agreement") is effective [DATE], BETWEEN: [ISSUER NAME], (the "Issuer"), an individual with their main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [HOLDER NAME], (the "Holder"), an individual with their main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] Collectively, the Issuer and Holder shall be referred to as the "Parties." WHEREAS, the Issuer shall issue a series of Bonds in the maximum amount of [SPECIFY BOND AMOUNT] (the "Bond") for the purpose of [SPECIFY PURPOSE]; WHEREAS, the Holder wishes to purchase [SPECIFY AMOUNT] of Bonds from the Issuer; WHEREAS, the Parties wish to evidence their Agreement in writing; NOW, THEREFORE, the Parties agree as follows: PURCHASE AND TRANSFER OF BONDS The Holder may be subject to purchase or transfer restrictions regarding the Bonds, as applicable from time to time under the laws of [STATE/PROVINCE], to which a Holder may be subject. The Issuer shall pay interest on the aggregate principal amount of the Bond from, and including, the Issue Date at the Bond Rate plus the Margin (the "Floating Rate"). Interest payments shall be made in arrears on the Interest Payment Dates each year. The relevant interest payable amount shall be calculated based on a period from, and including, one Interest Payment Date to, but excluding, the next following applicable Interest Payment Date. REGISTRATION IN A SECURITIES REGISTER In the event that the Bonds are listed on the Exchange, the Issuer shall submit the documents and the information necessary to maintain the listing. The Bond Issue and the Bonds shall, prior to disbursement. be registered in the Securities Register according to the [SPECIFY APPLICABLE ACT] Act and the conditions of the Securities Register. The Issuer shall promptly arrange for notification to the Securities Register of any changes in the terms and conditions of this Bond Agreement. The Holder shall receive a copy of the notification. MATURITY The Bonds shall mature in full on the Maturity Date and shall be repaid at par by the Issuer. PAYMENTS The Issuer shall pay all amounts due to the Holder under the Bonds and this Bond Agreement by crediting the bank account nominated by the Holder in connection with its securities account in the Securities Register. In the event that payment of interest or principal is not made on the relevant Payment Date, the unpaid amount shall bear interest from the Payment Date at an interest rate of [INTEREST RATE] %. TERM The term of this Agreement will be [NUMBER OF YEARS] years as from the above date. RELATIONSHIP It is understood by both the Parties that nothing in this Agreement will be construed as creating a relationship of partnership, joint venture, agency or employment between the Parties. LANGUAGE OF THE AGREEMENT The language of the Agreement shall be the English Language, which shall be the binding and controlling language for all matters relating to the meaning or interpretation of the Agreement. EVENTS OF DEFAULT The Issuer fails to fulfill any payment obligation under this Bond Agreement when due, it is obvious that such failure will be remedied, and payment in full of any such late payment is made, within [NUMBER OF DAYS] days following the original due date. The Issuer fails to duly perform any other covenant or obligation pursuant to this Bond Agreement and such failure is not remedied within [NUMBER OF DAYS] days. SEVERABILITY 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 shall in no way be affected, impaired or invalidated as a result. REPRESENTATION AND WARRANTIES
