When it comes to loan agreements, it is important to have all the terms written out clearly and precisely. One aspect of loan agreements that should be included is an extension clause. This clause outlines the conditions under which the loan agreement can be extended, giving the borrower more time to repay the loan.
An extension of loan agreement sample can be a helpful tool to ensure that the clause is written accurately and comprehensively. Here are some key components that should be included in an extension of loan agreement:
1. Date of the original loan agreement – This will help to tie the extension clause to the original agreement.
2. Parties involved – The names and addresses of both the borrower and the lender should be noted.
3. Extension terms – The terms of the extension should be clearly defined, including the new repayment date and any changes to interest rates or fees.
4. Signature lines – Both parties should sign and date the extension agreement, confirming their understanding and agreement to the new terms.
In addition to the above components, the extension of loan agreement sample should also be reviewed by legal counsel to ensure that it is legally binding and enforceable. It is also important to note that the extension clause should only be used in certain situations, such as unforeseen circumstances that prevent the borrower from making timely payments.
Overall, including an extension clause in a loan agreement can provide flexibility and peace of mind for both parties involved in the transaction. By using an extension of loan agreement sample as a guide, the clause can be written accurately and comprehensively, ensuring that all parties are on the same page.