Loan agreement with a pledge sample

A loan agreement with a deposit is a document for which one side (borrower) receives funds for temporary use from the second side (mortgagee) secured by the agreed property. In the event of a delay (non-payment of obligations according to the available schedule of funds return), the pledgee receives the right to implement the provision of provision.

The loan agreement is pledged in writing and is subject to a notarial certificate. This may be one document, which describes the conditions for providing a loan and registration of encumbrance, and may be two separate documents with references to each other. In the second case, the conditions for the provision of a loan are recorded in the main contract, and in the second, the order of securing obligations.

As a collateral, any liquid property belonging to the mortgagor in the rights of ownership or economic ownership may be:

real estate;
vehicle, special equipment;
equipment;
goods in circulation;
personal belongings;
property rights (except for those for which the concession to another person is prohibited by law - alimony, insurance, etc.).

Among the essential conditions of the loan agreement with the deposit are allocated:

loan amount;
return period (with a schedule);
support;
assessment of the subject of the pledge;
the location of the provision (usually the subject of the pledge remains at the pledger, but other conditions may be provided in the contract at the discretion of the borrower and creditor).

In addition, additional conditions can be announced in the contract:

the emergence of the right of collateral;
subsequent deposit;
the rights of the mortgager to restore the pledge after its loss;
the risk of random damage to the subject;
the procedure for implementing the provision;
responsibility of transaction participants;
the procedure for termination of the contract and others.

By constiting a loan agreement, you should first describe the participants of the transaction: the borrower (usually it acts as a pledger, but the provision can provide a third party) and the lender (mortgagee). In the main part of the document, all essential and additional conditions for entering into a contract are indicated. When you describe the maturity time, you should specify the frequency of payments (if possible), as well as the final date of payment of the entire amount.

It is important to indicate how the parties should act in case of loss (damage) of the collateral property. Usually, in this case, the lender has the right to demand the return of the full loan amount. Regarding the implementation of the burden, it is necessary to write how the amount distribution accepted from the sale of collateral occurs. If it does not cover all the debt, it is assumed that the borrower must pay the creditor to the missing part of the funds. If, after repaying the debt, there were free funds - they must go through the former owner of the pledge.

At the end, force majeure circumstances should be stated: how to act in situations that do not depend on the borrower and the pledgee. After describing all the parameters of the transaction, the parties indicate their details and sign the document. From now on, it comes into force. Download from us:

7 Sama

A competent loan agreement with a deposit will help take into account the interests of each side. It guarantees the fulfillment of obligations under the agreed period, regulates the procedure for resolving controversial situations. When concluding a loan agreement with ensuring, it is worth contacting the competent specialists who will help to make a document legally correct.