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Simple Loan Note Agreement for the United States

Simple Loan Note Agreement Template for United States

A Simple Loan Note Agreement is a legally binding document used in the United States that establishes the terms and conditions of a loan between a lender and borrower. It outlines the principal amount, interest rate, repayment schedule, and consequences of default. This document complies with federal and state lending regulations, including the Truth in Lending Act and applicable usury laws.

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Simple Loan Note Agreement

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What is a Simple Loan Note Agreement?

The Simple Loan Note Agreement serves as a fundamental legal instrument in U.S. lending practices, documenting the terms of monetary loans between parties. This document is commonly used when structuring straightforward lending arrangements, whether for personal, business, or investment purposes. It includes essential elements such as loan amount, interest rate, payment terms, and default provisions, while ensuring compliance with federal and state lending regulations. The agreement provides legal protection for both lender and borrower by clearly defining their rights and obligations throughout the loan term.

What sections should be included in a Simple Loan Note Agreement?

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

2. Background: Brief context of the loan arrangement

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Terms: Principal amount, interest rate, and payment schedule

5. Repayment Terms: Details of how and when payments must be made

6. Events of Default: Circumstances constituting default and consequences

7. Governing Law: Jurisdiction governing the agreement

What sections are optional to include in a Simple Loan Note Agreement?

1. Security: Details of any collateral securing the loan - include when loan is secured by assets

2. Guarantees: Terms of any third-party guarantees - include when loan includes guarantors

3. Prepayment Terms: Conditions for early repayment - include when early repayment is allowed

What schedules should be included in a Simple Loan Note Agreement?

1. Payment Schedule: Detailed breakdown of payment dates and amounts

2. Security Details: Description of collateral (if applicable)

3. Guarantor Information: Details of guarantors (if applicable)

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

Financing Agreement

Cost

Free to use
Clauses
























Industries

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardizing how costs associated with borrowing are calculated and disclosed

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

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

Dodd-Frank Act: Comprehensive financial reform legislation that includes provisions affecting lending practices and consumer protection in financial transactions

Regulation Z: Federal Reserve Board regulation implementing the Truth in Lending Act, providing specific guidelines for credit terms disclosure

State Usury Laws: State-specific laws that set maximum legal interest rates and regulate other lending terms within the state's jurisdiction

State Lending License Requirements: State-specific regulations governing who can engage in lending activities and under what conditions

State Consumer Protection Laws: State-specific laws designed to protect consumers in financial transactions, including lending

State Securities Laws: State-specific regulations that may apply if the loan note could be considered a security instrument

UCC Article 3: Uniform Commercial Code article governing negotiable instruments, including promissory notes

UCC Article 9: Uniform Commercial Code article governing secured transactions, applicable if the loan is secured by collateral

Internal Revenue Code: Federal tax regulations regarding the treatment of interest income and deductions related to loans

Bankruptcy Laws: Federal laws affecting the treatment of loans in bankruptcy proceedings and creditor rights

SBA Regulations: Small Business Administration regulations that may apply if the loan involves a small business

CFPB Regulations: Consumer Financial Protection Bureau regulations governing consumer lending practices and protection

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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