A finance contract agreement is a document created whenever finance is procured from a source to invest in a project. The document is prepared to make the process of obtaining finance legal. It also acts evidence between the parties involved.
Sample Finance Contract Agreement:
Premium Finance Company
Address: Relay Street, Aspen. MI 89765.
has agreed to finance the film project of:
Magic Works Studio
Address: Brooks Road, Aspen. MI 89456.
Contract no.: B3456.
The Premium Finance Company has paid Magic Works Studio an amount of $500000 on the contract beginning date of 23rd October 2010 which ends after five years on 22nd October 2015.
Considering the amount financed, Magic Works Studio has to consider the following terms and conditions:
1. They have to promise to pay back the amount as per the payment schedule, following the Federal law.
2. Appoint Premium Finance Company as the attorney who can cancel the contract and also rewrite the contract if there is any default in payment. Premium Finance Company can take such steps prior to which they need to give ten days notice period.
3. Assign a security to Premium Finance Company in terms of the dividend of the company.
4. In case if there is a default payment or Magic Works Studio does not comply with the terms and conditions, they have to pay up the full amount immediately.
5. Magic Works Studio needs to pay an interest rate of 7.5% per annum on the total amount and the installment payment due date will be on 30th of every month.
Thus both the parties have agreed to the terms and conditions and have signed below:
John Cassel Brian Singer
On behalf of Magic Works Studio On behalf of Premium Finance Company
Date: 23rd October, 2010 Date: 23rd October 2010