Subordinated Loan Agreement

Subordinated Loan Agreement

This contract (“Contract”) is an agreement between {Junior Creditor}, henceforth known as “Junior Creditor,” and {Senior Creditor}, henceforth known as “Senior Creditor,” and it relates to {Borrower}, henceforth known as “Borrower.”

LOAN

The Lender (Junior Creditor) hereby agrees to provide a subordinated loan to Borrower in the amount of {amount} at an interest rate of {rate}.

SUBORDINATION

Borrower acknowledges and agrees that this loan is subordinated to Borrower’s senior debt obligations, and that in the event of default, the senior debts shall be repaid before the subordinated loan.

TERM

This subordinated loan shall be in effect for a term of {months/years}.

REPAYMENT

The loan shall be repaid in full on or before its maturity on {date}. {Or on demand, if applicable.}. All accrued interest shall also be due.

DEFAULT

In the event of default by Borrower, Lender may demand the immediate repayment of all funds plus interest. “Default” is defined as {missing a payment, breaching part of the agreement, etc.}.

Borrower and Lenders agree to the conditions above, and sign to that effect in the presence of a notary public on the {date} day of {month}, {year}.

____________________________________

Borrower signature & date

____________________________________

Junior Creditor signature & date

____________________________________

Senior Creditor signature & date

Index of Printable Contract Examples