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Demand Loan Agreement for the United States

Demand Loan Agreement Template for United States

A Demand Loan Agreement is a legal contract under U.S. law that establishes the terms of a loan which can be called for repayment by the lender at any time. This document outlines the principal amount, interest rate, repayment terms, and the lender's right to demand full repayment without prior notice. It includes federal and state-specific compliance requirements, including Truth in Lending Act disclosures and usury law considerations.

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Demand Loan Agreement

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What is a Demand Loan Agreement?

The Demand Loan Agreement is a critical document used when parties wish to establish a flexible lending arrangement where the lender maintains maximum control over the timing of repayment. This type of agreement is commonly used in the United States for business financing, bridge loans, or family lending situations. The document must comply with federal regulations such as the Truth in Lending Act and state-specific usury laws. It typically includes detailed terms about interest calculation, default provisions, and any security arrangements, while maintaining the distinctive feature that the entire loan can be called due at the lender's discretion.

What sections should be included in a Demand Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including interest rate, business day, default, and other relevant definitions

4. Loan Amount and Terms: Principal amount, interest rate calculation method, and payment terms

5. Demand Nature: Lender's right to demand repayment at any time and notice requirements

6. Events of Default: Circumstances constituting default and consequences thereof

7. Representations and Warranties: Borrower's assertions about their legal and financial status

8. Governing Law: Jurisdiction governing the agreement and dispute resolution provisions

What sections are optional to include in a Demand Loan Agreement?

1. Security: Details of any collateral securing the loan, including description and maintenance requirements

2. Guarantees: Terms and conditions of third-party guarantees of the loan

3. Insurance Requirements: Required insurance coverage for collateral and proof of insurance obligations

4. Subordination: Priority of the loan relative to other debt and related arrangements

What schedules should be included in a Demand Loan Agreement?

1. Payment Schedule: Details of any scheduled payments and calculation methods

2. Collateral Description Schedule: Detailed description of security including serial numbers, locations, and values

3. Truth in Lending Disclosure: Federal required disclosures about loan terms, APR, and fees

4. UCC Filing Information: Details for UCC filings including filing locations and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses

























Industries

Truth in Lending Act (TILA): Federal law requiring lenders to provide standardized disclosures about loan terms and costs to promote informed borrowing decisions

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or public assistance status

Fair Credit Reporting Act (FCRA): Federal law regulating the collection, dissemination, and use of consumer credit information

Dodd-Frank Act: Comprehensive financial reform legislation that created the CFPB and established new financial regulations following the 2008 financial crisis

Federal Reserve Board Regulations: Set of rules governing banking practices, including lending operations and consumer protection requirements

Bank Secrecy Act: Federal law requiring financial institutions to assist government agencies in detecting and preventing money laundering

State Usury Laws: State-specific regulations that set maximum interest rates and define what constitutes usurious lending practices

State Banking Regulations: State-level rules governing banking operations, including lending practices and licensing requirements

Uniform Commercial Code: Standardized set of business laws regulating financial contracts, including Article 3 (Negotiable Instruments) and Article 9 (Secured Transactions)

CFPB Regulations: Rules set by the Consumer Financial Protection Bureau to ensure fair lending practices and protect consumer interests

E-SIGN Act: Federal law establishing legal framework for electronic signatures and electronic records in lending documentation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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