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Repayment Agreement for the United States

Repayment Agreement Template for United States

A Repayment Agreement is a legally binding document used in the United States that formalizes the terms and conditions under which a debt will be repaid. This document outlines the specific payment schedule, interest rates, and consequences of default, while ensuring compliance with federal and state lending laws. It provides protection for both the lender and borrower by clearly documenting the agreed-upon terms, including the total amount owed, payment frequency, and duration of the repayment period.

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What is a Repayment Agreement?

A Repayment Agreement becomes necessary when there is a need to formalize debt repayment terms between parties. This document is commonly used in the United States when restructuring existing debt, establishing payment plans for defaulted loans, or documenting informal lending arrangements. The agreement must comply with federal regulations such as the Truth in Lending Act and state-specific usury laws. A well-drafted Repayment Agreement includes essential details such as payment amounts, schedule, interest rates, and default provisions, while providing clear legal recourse for all parties involved. This type of agreement is particularly valuable in situations where the original payment terms need to be modified or when documenting previously informal lending arrangements.

What sections should be included in a Repayment Agreement?

1. Parties: Identifies and defines all parties involved in the repayment agreement

2. Background/Recitals: Explains the context of the debt and circumstances leading to the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Repayment Terms: Details the amount owed, payment schedule, and method of payment

5. Interest: Specifies any applicable interest rates and calculation methods

6. Default Provisions: Outlines what constitutes default and consequences

7. Governing Law: Specifies the jurisdiction governing the agreement

What sections are optional to include in a Repayment Agreement?

1. Collateral: Details any security/collateral for the debt - include when the debt is secured by assets

2. Early Repayment: Terms for early repayment or prepayment penalties - include when early repayment options are offered

3. Late Payment Penalties: Specifies penalties for late payments - include when late payment penalties will be imposed

4. Insurance Requirements: Specifies required insurance coverage - include when collateral must be insured

What schedules should be included in a Repayment Agreement?

1. Payment Schedule: Detailed breakdown of payment dates and amounts

2. Collateral Description: Detailed description of any secured assets

3. Amortization Schedule: Schedule showing principal and interest breakdown for each payment

4. Original Loan Documentation: Copies of original loan agreements or promissory notes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Clauses






















Industries

Truth in Lending Act (TILA): Federal law that requires lenders to provide standardized disclosures about loan terms and costs, protecting consumers in credit transactions

Fair Debt Collection Practices Act (FDCPA): Federal law governing debt collection practices, including restrictions on collection methods and requirements for debt collector communications

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, age, or public assistance status

Uniform Commercial Code (UCC) Article 9: Governs secured transactions and provides rules for creation and enforcement of security interests in personal property when collateral is involved

State Usury Laws: State-specific regulations that set maximum interest rates that can be charged on loans and define what constitutes usurious practices

State Contract Laws: State-specific regulations governing contract formation, enforcement, and remedies for breach of contract

State Debt Collection Regulations: State-specific rules governing debt collection practices, often providing additional protections beyond federal FDCPA requirements

State Statute of Limitations: State-specific time limits for bringing legal action to collect on a debt or enforce a repayment agreement

Statute of Frauds: Legal requirement that certain contracts must be in writing and signed to be enforceable, particularly relevant for agreements that cannot be performed within one year

Internal Revenue Code - Debt Forgiveness: Federal tax provisions governing the treatment of forgiven debt as taxable income and related reporting requirements

IRS Interest Income Reporting: Federal regulations requiring reporting of interest income received from repayment agreements to the Internal Revenue Service

Bankruptcy Code Provisions: Federal laws determining how debts are treated in bankruptcy, including which debts are dischargeable and the priority of repayment

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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