Example of a Commercial Loan Agreement

A commercial loan agreementIt is a contract that formalizes a money loan for commercial purposes; It can be of a private nature or a business nature.

Generally there are two parties, "The Creditor" and "The Debtor", although there may be more parties such as two or more creditors, or two or more debtors and in some cases guarantors. Both the creditor or the guarantor can be companies.

Example of a commercial loan agreement:

COMMERCIAL LOAN AGREEMENT

Commercial loan contract entered into by one party by “Ultramarinos Lozano S.A. de C.V., ”as the lender and“ Casa Montes Distribuidores S.A. de C.V., ”as debtor.

Mr. Martín Espinosa Arismendi introduces himself as a representative of “Ultramarinos Lozano S.A. de C.V. " and is identified with identification number 45789887

As a representative, he identifies himself with a notarial deed dated May 12, 2012, certified by the notary public number 32 of the federal district.

STATEMENTS:

I. "The Creditor" declares to represent "Ultramarinos Lozano S.A. de C.V., ”which has its address at Calle Oaxaca number 325, Col Roma, Mexico DF. and accredited with a notarial act number 563 made by the notary public 689 of the Federal District, Mexico and that attests to the previous.

II. "The Debtor" declares to be a representative of the company "Casa montes Distribuidores S.A de C.V." as well as being duly accredited as stated in the notarial deed number 25 made before the notary public in the district federal. As well as that said company has its physical and fiscal address at Av. Tepozanes number 563, Col Benito Juárez, Nezahualcoyotl Mexico and be duly manifested before the public and commercial registry of the Federal District with public deed No. 68743.

III. Both parties agree and accept their personalities mutually, and agree to enter into this contract in accordance with the following Clauses.

CLAUSES:

First.- With this contract, the objective is to lend the amount of ($ 25,300,000.00 M / N) (Twenty-five million three hundred thousand pesos National Currency), and that in this act is delivered by means of three cashier's checks duly endorsed. In the name of “Casa montes Distribuidores S.A. de C.V. " and with authorization of collection by Mr. Martín Espinosa Arismendi. Which will be paid within a period of three years from the formalization of this document.

Second.- The amount granted with a value of 25,300,000.00 M / N) (Twenty-five million three hundred thousand pesos National Currency) corresponding to this loan, will be used for acts of commerce according to the activity carried out by the company “Casa montes Distribuidores S.A. de C.V. ”, handled in a duly responsible manner and with a duly public accountant accredited.

Third.- The debtor provides as a guarantee a mortgage bond corresponding to the property located in Av. Tepozanes number 563, Col Benito Juárez, Nezahualcoyotl Mexico, which will be duly returned once the corresponding payments, terms and interests have been completed.

Bedroom.- "The Debtor" is obliged to pay "The Creditor" the amount of 25,300,000.00 M / N, (Twenty-five million three hundred thousand pesos National Currency) plus 6.3% monthly interest, at the end of the contract, which will have a duration of 3 years from the formalization correspondent.

Fifth.- In the event that "The Debtor" does not pay ordinary interest on the date indicated or does not repay said debt to "The Creditor", the company that contracted the debt will be obliged to pay the amount of 25,300,000.00 M / N) (Twenty-five million three hundred thousand pesos National Currency) plus 12% monthly interest from the first business day from the expiration date of the obligation that is concerned.

Sixth.- "The Debtor" is obliged to repay the amount subject to said loan on the day following the end of this contract, together with the ordinary or moratorium interests that have been generated. Similarly, "The creditor" will issue the corresponding receipt for the payments made as well as a receipt for the payment of interest, if the situation requires it.

Seventh.- "The Debtor" accepts and agrees to comply with the obligation mentioned in the previous clause at the aforementioned address corresponding to "The Creditor".

Eighth.- The expenses corresponding to the processing of this contract will be paid equitably by both parties.

Ninth.- Causes for termination of the contract are those attributable to "The Debtor" such as:

a) That the object of the loan is available for purposes other than what is stipulated in this contract and that they have not been renegotiated with the lender.
b) Failure to return the property or the amount that is the object of the loan in the manner and conditions agreed upon, and
c) Failure to pay ordinary interest on the date indicated.

The cause of termination of this contract is attributable to "The Creditor", consisting of:

a) That it makes use or executes for itself the guarantee granted by "The Debtor" without any reason or act of default incurred by any of the parties.

In the event that this contract is terminated, "The Debtor" undertakes to pay or return the amount or object given in loan at the time it is required by "The Creditor", as well as to pay the amount of $ 50,000.00 pesos, in respect of penalty or compensation except in the case of subsection b) that obliges you to pay default interest, in accordance with what was previously agreed in the seventh clause.

Tenth.- This contract may be terminated by either party with a 60-day prior notice. working in advance and prior settlement of the payment and the corresponding ordinary interest and delays in its case. And being obliged "The Creditor" to restore the corresponding guarantee in a full and satisfactory manner.

Eleventh.- The parties declare that they renounce all jurisdiction and avail themselves of the corresponding to the Federal District to clarify any difference or controversy resulting from this contract. This agreement remains in force in the event of a change of residence of either party.

For the conclusion of this contract, the Messrs.  Lic. Felipe Salinas Perea by "The Creditor" and the Ms. Josephine Montiel Lopez by the Debtor to attest to the existence and conformity of the parties.

After having read this contract in its entirety, both parties are satisfied and aware of its content, value and obligation contracted herewith.

The validity of this contract begins as of their signatures and corresponding to the date June 10, 2012, in Mexico City Federal District.

Name of "The Creditor" Name of "The Debtor"
Signature Signature

Name of Witness Name of Witness

Signature Signature

Notary
Firm