Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to immediately repay the loan (both the principal and all accrued interest) if certain conditions occur. Credit guarantee (personal) – If someone does not have enough credit to lend money, this form also allows someone else to answer if the debt is not paid. A parent plus loan, also known as a “Direct PLUS Loan,” is a federal student loan obtained by the parents of a child who needs financial assistance for school. The parent must have a healthy creditworthiness to obtain this loan. It offers a fixed interest rate and flexible credit terms, but this type of loan has a higher interest rate than a direct loan. Parents would usually only get this credit to minimize the amount of their child`s student debt. A person or business can use a credit agreement to set terms such as an amortization table with interest (if any) or the monthly payment of a loan. The most important aspect of a loan is that it can be adjusted to its liking by being very detailed or just a simple note. In any case, each credit agreement must be signed in writing by both parties. Credit agreements usually contain information about: If the borrower dies before the loan is repaid, the authorities will use their assets to pay the rest of the debt. If there is a co-signer, he is responsible for the debt. Late – If the borrower is in arrears due to non-payment, the interest rate is due to the balance of the loan until the loan is paid in full, in accordance with the agreement established by the lender. If the lender dies before receiving full repayment, the borrower owes the lender`s estate.
In this case, the beneficiaries of the lender`s estate will recover the rest of the debt. Borrower – The person or company that receives money from the lender, who then has to repay the money under the terms of the loan agreement. Depending on the amount of money borrowed, the lender may decide to leave the authorized agreement in the presence of a notary. This is recommended if the total amount, plus interest, is higher than the maximum rate allowed for the small claims court in the parties` jurisdiction (normally $5,000 or $10,000). . . .