The Loan and Notes Clause Samples
The "Loan and Notes" clause defines the fundamental terms governing the loan transaction and the promissory notes that evidence the borrower's obligation to repay. It typically outlines the principal amount of the loan, the issuance of one or more notes as legal proof of the debt, and may specify the form, denomination, and transferability of these notes. By clearly establishing the existence and terms of the loan and the associated notes, this clause ensures both parties understand the financial commitment and the documentation that formalizes it, thereby reducing ambiguity and potential disputes over the loan's existence or enforceability.
The Loan and Notes. Subject to the terms and conditions of this Agreement, the Lender agrees to lend to the Company, and the Company agrees to borrow from the Lender, subject to the satisfaction of the conditions for the respective Closings as set forth herein, the aggregate principal amount of four million dollars ($4,000,000.00) evidenced by the Secured Promissory Notes to be issued at the respective Closings, each such Note in substantially the form attached hereto as Exhibit A (the "Notes"). The amounts of the foregoing aggregate principal amount will be advanced to the Company in tranches as provided herein .
The Loan and Notes