Loan Agreement - Personal - Arizona

PERSONAL LOAN AGREEMENT — ARIZONA

Before you use this: This form is for one unsecured private loan to an individual for personal or household use, executed in Arizona, other than medical debt. The lender must not advertise loans or make three or more consumer loans to Arizona residents in a calendar year; if it does, obtain a licensed-lender review. There are no added fees, and the chosen fixed rate must be written before signing.

This agreement is made on [__/__/____] in [CITY], Arizona, between [LENDER FULL LEGAL NAME], of [LENDER ADDRESS] ("Lender"), and [BORROWER FULL LEGAL NAME], of [BORROWER ADDRESS] ("Borrower").

Loan and funding

Lender agrees to advance $[AMOUNT] to Borrower on [__/__/____] by [TRANSFER METHOD]. Borrower will use the funds for [PERSONAL OR HOUSEHOLD PURPOSE, OTHER THAN MEDICAL DEBT]. This loan is unsecured. Lender will give Borrower written confirmation of the amount and date actually advanced. Borrower's repayment obligation begins when funds are advanced.

Interest and repayment

Interest accrues only on unpaid principal at [____]% annual simple interest (enter 0 for an interest-free loan; this form uses no rate above 10%), without compounding. For each day, interest equals unpaid principal multiplied by the stated annual rate divided by 365 if that day is in a nonleap calendar year, or by 366 if that day is in a leap calendar year. Borrower will pay $[AMOUNT] first on [__/__/____] (choose a date after the advance from the 1st through the 28th), then on that same day of each following month until the final due date or earlier full payment. No installment exceeds the unpaid principal and accrued interest then due. All unpaid principal and accrued interest are due on [__/__/____] (on or after the first scheduled payment date). Payments apply first to accrued interest, then to principal. Borrower may prepay all or part at any time without a charge; a partial prepayment does not postpone the next scheduled due date unless the parties sign a change.

Neither party may add an origination fee, late fee, default interest, or prepayment penalty under this agreement. The rate and payments written here are the entire consideration for making the loan.

Missed payment and collection

If a payment is more than [____] days late, Lender may give Borrower written notice of the missed amount. If Borrower does not pay it within [____] days after receiving the notice, Lender may declare the unpaid principal and accrued interest immediately due. Lender may pursue payment through lawful remedies, subject to applicable limitation periods and collection law. A default does not increase the agreed interest rate.

Notices and changes

Notices may be delivered personally or mailed to the addresses above, or to a replacement address given in writing. Changes to this agreement must be written and signed by both parties. Arizona law governs this agreement. This is the parties' entire agreement for this advance.

Lender signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Borrower signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Arizona law reference

Ariz. Rev. Stat. § 44-1201(A)(2) sets a 10% annual default for nonmedical loans unless a different rate is contracted for in writing. This form selects a written fixed rate from 0% to 10% and charges no other lending fees. For debt evidenced by a written contract executed in Arizona, § 12-548(A) sets a six-year action period after accrual. Under § 44-1201(A)(2), a judgment based on a qualifying written interest agreement bears its agreed rate, stated in the judgment. Sections 6-601(16) and 6-602(A)(3) distinguish a person not regularly engaged in consumer lending from one who advertises or makes three or more consumer loans in a calendar year.