This financial agreement template has 10 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our financial agreement template:
FINANCIAL AGREEMENT This Financial Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Borrower"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF THE FINANCER] (the "Financer"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: DEFINITIONS The terms defined in this Section 1.1 shall have the respective meanings set forth below for all purposes in this Agreement: "Collateral" means all property securing repayment of the Indebtedness as evidenced by the Security Documents, including all additions thereto, replacements and proceeds, thereof. "Event of Default" has the meaning provided in Section 5.1. "Indebtedness" means all items of indebtedness, obligation or liability, whether matured, liquidated or unliquidated, direct or contingent, joint or several, of any of the Borrower to the Financer, whether now existing or hereafter arising, including but not limited to: principal of, interest on and all other amounts, payments and premiums at any time evidenced by or due under the Note, this Agreement, or any other Security Document; the future loans and advances made by the Financer, at its sole discretion, to the Borrower on account of the failure of the Borrower to comply with the covenants or agreements contained herein or in any of the Security Documents, including but not limited to advances for taxes, insurance, rent, or repairs to or maintenance or storage of any of the Collateral, and reimbursement to the Financer for all of the Financer's expenses and costs, including reasonable fees and expenses of its legal counsel, in connection with the preparation, administration, amendment, modification or enforcement of this Agreement or any of the Security Documents; and any modifications, renewals, extensions or increases of any of the foregoing. "Material Adverse Effect" means any occurrence, event, fact, condition, effect or change, whether determined individually or in the aggregate, that does, or is reasonably likely to, have a Material Adverse Effect on the financial condition, results of operations or business of the Borrower other than any occurrence, event, fact, condition, effect or change (i) resulting from performance in accordance with the express terms of this Agreement by the Parties of their respective obligations contained herein; (ii) impacting the economy, securities markets, or financial markets generally, except to the extent such occurrence, event, fact, condition, effect or change disproportionately affects the Borrower; (iii) impacting the Borrower's industry in general, except to the extent such occurrence, event, fact, condition, effect or change disproportionately affects the Borrower; (iv) any change or effect resulting from changes in applicable laws thereof; (v) failure to meet internal forecasts or financial projections; (vi) any change or effect resulting from the pendency or consummation of a merger, including the loss of any employees, customers, suppliers, consultants, partners or distributors; or (vii) attributable to any natural disaster or any acts of terrorism, sabotage, military action or war (whether or not declared). "Maturity Date" as used herein shall be the earlier of [SPECIFY MONTHS OR DATE/Example: 12 months from Effective Date] or acceleration of the Indebtedness upon any Event of Default. "Note" means that one certain Promissory Note, in the original principal amount of [ENTER PRINCIPAL AMOUNT] executed by the Borrower and payable to the order of the Financer, and any and all renewals, rearrangements, enlargements or extensions of such Note, or of any Promissory Note or Notes given therefore, and any judgments rendered on any of the foregoing "Permitted Lien" means (i) mechanics', carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business, if the underlying obligation is not delinquent or in dispute and appropriate reserves have been set aside in accordance with applicable laws; (ii) liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business under which the Borrower is not in default; (iii) liens for current taxes not yet due and payable or which may hereafter be paid without penalty or which are being contested in good faith, and, in connection therewith, appropriate reserves have been set aside in accordance with applicable laws; (iv) easements, covenants, rights-of-way and other similar restrictions or conditions of record; (v) licenses granted to end users in connection with their use of the Borrower's products granted pursuant to the Borrower's standard end-user license agreement; and (vi) zoning, building and other similar ordinances or restrictions imposed by applicable laws. LOANS AND COLLATERAL Loan: Subject to the terms hereof, the Financer agrees to loan to the Borrower [AMOUNT] on a term loan basis, which Loan will be available for use by the Borrower to finance the business of [Nature of Business/Example: handicrafts]. The Financer has received the liens and security interests evidenced by the Security Documents. In addition, as security for the prompt payment of all Indebtedness, whether now existing or hereafter occurring, the Borrower hereby assigns, transfers and sets over to the Financer all of its right, title, and interest in and to, and grants to the Financer a lien on and a security interest in, all amounts that may be owing from time to time by the Financer to the Borrower, including without limitation any balance or share belonging to the Borrower or any deposit or other account of the Borrower with the Financer, which lien and security interest shall be independent of and in addition to any right of set-off that the Financer has under common law or under this Agreement. Conditions: In addition to any other conditions set forth in this Agreement, the Borrower shall not be entitled to any advance under this Agreement unless and until the Borrower shall have duly executed and delivered to the Financer, and the Financer shall have reviewed and approved, this Agreement, the Note, the Collateral, current financial statements for the Borrower, and any other Security Documents requested by the Financer. In addition, no advance under this Agreement will be made unless at the time of the request for advance or issuance: there shall exist no condition or event constituting an Event of Default, or which, after notice or lapse of time or both, would constitute an Event of Default; the representations and warranties contained in Section 3 shall be true and correct as of the date of the request for advance; and The Borrower shall have performed and complied with all other agreements and conditions required as a condition to such advance; and all of the Security Documents shall have remained in full force and effect. Indemnity: In order to protect the Financer and induce the Financer to enter into this Agreement, the undersigned Borrower hereby agrees to defend, indemnify and save the Financer and any officer, director, shareholder, agent, attorney, or employee of the Financer harmless from any and all claims, causes of action, damages, expenses and liabilities of any type whatsoever, including but not limited to attorneys' fees suffered or incurred as a result of or in connection with the Loan except that the Borrower shall have no obligation to indemnify the Financer against any claim resulting from the Financer's violation of any of the Security Documents
