Loan Agreement for Virginia


THIS LOAN AGREEMENT (the "Agreement"), entered into as of _____________, is hereby made by and between the Parties stated below (each a "Party").


WHEREAS, Lender intends to provide, and Borrower intends to receive, a loan upon the terms and conditions hereinafter set forth;

WHEREAS, each Party has full authorization to enter into this Agreement in the capacity in which it is signing; and

NOW THEREFORE, in consideration of the mutual promises made below, the Parties agree as follows:

  1. Parties. The Parties to this Agreement are as follows (each a "Borrower" and "Lender," respectively):
  2. Promise to Pay. FOR VALUE RECEIVED, Borrower promises to pay Lender a total principal amount of USD in return for receiving the following from Lender: _____________.
  3. Interest. No interest will be due or payable under the terms of this Agreement.
  4. Method of Payment. Acceptable methods of payment are as follows: .
  5. Payment and Notice Addresses. All payments must be delivered to Lender's address stated above or any place or in any other manner as may be designated from time to time in writing by Lender. Notices will be in writing and delivered in person, sent by facsimile, or sent by reputable overnight delivery service to each Party's respective address stated above or to any place or in any other manner as may be designated from time to time in writing by the Parties.
  6. Prepayment. Borrower does not have the right to prepay any portion of the principal balance of the loan, whether in full or in part, unless Lender provides prior written consent.
  7. Collateral. This is an unsecured agreement.
  8. Recourse. THIS AGREEMENT ALLOWS LENDER TO SEEK RECOURSE AGAINST ANY PERSONAL ASSETS OF BORROWER. The personal assets are therefore subject to the payment of this debt.
  9. Events of Default. In addition to any other events of default specified herein, the following events, without limitation, will constitute a default:
    1. Borrower's failure to pay all monies owed in full on or before the Due Date;
    2. Borrower's failure to cure a breach of this Agreement on or before _____________ days after Lender gives Borrower written notice thereof;
    3. Any material misrepresentation by Borrower of a fact or promise made in this Agreement or any statement, document, or certification delivered to Lender in accordance herewith;
    4. Any withdrawal, revocation, expiration, or termination of a necessary authorization required by any government or other organization in order to execute, perform, and enforce this Agreement;
    5. Borrower's filing any voluntary or involuntary petition for relief under the United States Bankruptcy Code; and
    6. The death or dissolution of either Party.
  10. Acceleration. Should Borrower default under or otherwise breach this Agreement and not cure said default or breach on or before _____________ days after Lender gives Borrower written notice thereof, by personal delivery or certified mailing, all principal remaining unpaid and interest accruing thereon will, at the option of Lender, become immediately due and payable to Lender. The date of notice will be the date of delivery or the date of mailing.
  11. No Waiver. No delay or failure in giving notice of a default or breach will constitute a waiver of the right of Lender to exercise its right of acceleration or any other right Lender may have hereunder in the event of a subsequent or continuing default or breach.
  12. Attorney Fees and Court Costs. In the event of a default or breach under this Agreement, Borrower covenants to pay Lender all collection and/or litigation costs incurred, including reasonable attorney fees and court costs, whether or not a judgment is received and whether or not a lawsuit is filed.
  13. Taxes. Borrower covenants to make all payments due hereunder to Lender without setoff or counterclaim and without deducting for taxes or withholdings of any nature whatsoever that may be imposed by any tax or governmental authority. In the event that law or regulation requires Borrower to make such a deduction or withholding from a payment due hereunder, Borrower covenants to increase the amount of such payment to the extent necessary to ensure that Lender receives an amount equal to that which it would receive if no such law or regulation were in effect and to provide Lender with official documentation, to Lender's satisfaction, evidencing Borrower's payment of the deduction or withholding.
  14. Borrower Representations and Warranties
    1. Borrower represents and warrants that it has the full power and authority to enter into and perform this Agreement according to the terms hereof and has taken, and will take, any and all actions necessary to authorize the execution and performance of this Agreement according to the terms hereof; and
    2. Borrower represents and warrants that it has obtained all necessary approvals, licenses, permits, and/or other authorizations required by any government or other organization in order to execute, perform, and enforce this Agreement, that all such authorizations are in effect, and that it will continue to obtain any such authorizations that may become required hereafter.
  15. Borrower Covenants
    1. Costs and Expenses. Borrower covenants to reimburse Lender for all reasonable out-of-pocket expenses Lender incurs in enforcing this agreement, including reasonable attorney fees and court costs. Additionally, Borrower will pay any stamp or other similar duties and taxes to which this Agreement is subject.
  16. General Provisions
    1. Governing Law. The Parties agree that the laws of the State of _____________ will govern this Agreement without regard to its conflict-of-law provisions. Any claims or disputes concerning this Agreement will, at the sole election of Lender, be adjudicated in _____________ County.
    2. Successors and Assigns. Lender may transfer this Agreement to another holder without notice to Borrower; however, Borrower will not be liable to any assignee for any amounts greater than it would otherwise be liable for under this Agreement. Borrower agrees to remain bound under the terms of this Agreement to any subsequent holder of this Agreement. Borrower covenants and warrants not to assign its rights or obligations under this Agreement without Lender's prior written consent. Each Borrower identified in this Agreement will be jointly and severally liable for the repayment of the debt described herein, and the terms of this Agreement will be equally binding upon and will inure to the benefit of the Parties and their heirs, executors, administrators, successors, and permitted assigns.
    3. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes any and all other prior and contemporaneous agreements and understandings, both written and oral, between the Parties.
    4. Amendment. No amendment, modification, termination, or waiver of any provision of this Agreement will be effective unless it is in writing and signed by both Borrower and Lender.
    5. Time of Essence. Time is of the essence concerning all provisions contained in this Agreement.
    6. Waivers. Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and protest, and all other demands and notices, in connection with the delivery, acceptance, performance, or other enforcement of this Agreement.
    7. No Implied Waiver; Cumulative Remedies. Lender's failure to exercise any right or remedy provided in this Agreement will not be construed as a waiver of any future exercise of that right or exercise of any other right or remedy to which Lender may be entitled. No delay or omission on the part of Lender in exercising any right hereunder will operate as a waiver of any other right under this Agreement. No right conferred upon Lender by this Agreement will be exclusive of any other right referred to herein or now or hereafter available at law, in equity, by statute or otherwise, and all remedies will be cumulative and not in the alternative.
    8. Severability. If any provision of this Agreement is held by a court of law to be illegal, invalid, or unenforceable, then that provision will be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and the legality, validity, and enforceability of the remaining provisions of this Agreement will not be affected or impaired thereby.
    9. Headings. The headings used in this Agreement are provided for convenience only and will not be used in construing the meaning or intent of the corresponding provisions.
    10. Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile transmission or by e-mail delivery, each of which when executed and delivered shall constitute an original of this Agreement, but all the counterparts shall together constitute the same agreement. No counterpart shall be effective until each Party has executed at least one counterpart.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date affixed to each signature.

Instructions for Your Loan Agreement

This loan agreement specifies all of the important terms and conditions for repayment of a loan. The loan that the Lender provides to the Borrower may be in the form of money or property, and you can choose to include multiple Borrowers, Lenders, and Guarantors depending on the requirements of the transaction. The information below will guide you through some of the important issues and considerations you will encounter when creating your loan agreement.

Party Information

You will begin by entering the name and address of each Borrower and Lender. If a party is a business, be sure to include the full legal name of that entity, such as "eDemand, Inc." If you include multiple Borrowers, each Borrower will be "jointly and severally liable" under the agreement. This is legal speak that means each Borrower will be required to repay the full amount of the loan should another Borrower default on its obligation. However, if a Borrower is ever forced to pay back part of another Borrower's portion of the loan, often that Borrower will be able to then obtain a judgment in court against the defaulting Borrower for the money it is owed. Joint and several liability will also apply if you choose to include one or more Guarantors, discussed below.

Transaction Details

Next you will enter the details of the transaction. Be as specific as possible in describing what the Borrower is receiving from the Lender, whether it is a mortgage loan, goods, services, etc. You will then describe how the Lender expects to be repaid. You will also have the option to include miscellaneous terms and conditions later in the form builder should you need to further customize your agreement.


Answer whether or not the Lender requires any collateral to ensure repayment. For example, in a mortgage agreement the collateral is the house itself. However, collateral is often other types of property, such as the Borrower's inventory, real estate, or accounts payable. If the Borrower defaults on repayment, the Lender gets to keep or sell the collateral.


Prepayment refers to the Borrower's ability to repay the loan ahead of schedule. Often, Borrowers are prohibited from, or receiving a fee for, making prepayments because it prevents the Lender from receiving steady payments and from collecting a predictable amount of interest on the loan. If you choose to allow prepayment, you can then choose to require a fee for a percentage of the amount of the principal prepaid.

Notary and Witness

Lastly, you will be asked whether or not you want to include spaces for a notary and/or witness to sign. It is always recommended to include a notary to help prove the validity of the document should there ever be a question. For the same reason, including a witness is helpful. If possible, it is a good idea to include both.


Here you have the option to include one or more Guarantors to guarantee the repayment of the loan should a Borrower be unable to pay part or all of the outstanding debt. A separate guarantee agreement will automatically be included for each Guarantor to sign along with the Lender(s) and any notary or witness included.

As discussed above, each Guarantor will be jointly and severally liable with each Borrower and with each other Guarantor for the full repayment of the loan. This helps assure that the Lender will be repaid first and in full, and then the other parties can sort out how much they owe each other after the fact, should the need arise.

Executing Your Loan Agreement

After you are done filling out the form, simply have the Borrower, Lender, and any notary and witness available sign the document. Again, although a notary and witness are not required in most jurisdictions, it is always a good idea to include them. When the document has been signed and witnessed you are done! Make sure each Borrower, Lender, and Guarantor (if any) each get a copy.

Please note that the language you see here changes depending on your answers to the document questionnaire.

Loan Agreement

Use our loan agreement to specify all the important terms and conditions for repayment of a loan. LegalNature's step-by-step guidance will make it easy for you to customize your loan agreement exactly as needed by the parties.

Quickly include multiple borrowers, lenders, and cosigners. Indicate whether the borrower will make payments monthly, in one lump sum payment, or at any time upon demand by the lender.

LegalNature's intuitive form builder will help you create and download your loan agreement in minutes.

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user guide icon Help Guide

This guide provides an explanation of the key terms and considerations when creating a loan agreement. Here we elaborate on the step-by-step guidance we provide you when answering our document questionnaire.

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checklist icon Checklist

Review the basic steps you will need to follow before and after completing a loan agreement. This includes tips on gathering information, transaction details, prepayment preferences, and signing and witnessing your agreement.

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