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    Loan Payment Default

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    Nahid Hossain
    The document discusses loan payment default and provides a sample demand letter. It notes that one of the most important loan terms is payment due date. If a borrower defaults, the lender should first make a formal demand for payment while threatening legal action, rather than using threats or violence. The sample letter demands full payment within 14 days, or the lender will take legal action to recover costs and the loan amount. It states any partial payment will be accepted without prejudice to the lender's full claim.

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    Loan Payment Default

    Uploaded by

    Nahid Hossain
    1K views2 pages
    The document discusses loan payment default and provides a sample demand letter. It notes that one of the most important loan terms is payment due date. If a borrower defaults, the lender should first make a formal demand for payment while threatening legal action, rather than using threats or violence. The sample letter demands full payment within 14 days, or the lender will take legal action to recover costs and the loan amount. It states any partial payment will be accepted without prejudice to the lender's full claim.

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    The document discusses loan payment default and provides a sample demand letter. It notes that one of the most important loan terms is payment due date. If a borrower defaults, the lender should first make a formal demand for payment while threatening legal action, rather than using threats or violence. The sample letter demands full payment within 14 days, or the lender will take legal action to recover costs and the loan amount. It states any partial payment will be accepted without prejudice to the lender's full claim.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    1K views2 pages

    Loan Payment Default

    Uploaded by

    Nahid Hossain
    The document discusses loan payment default and provides a sample demand letter. It notes that one of the most important loan terms is payment due date. If a borrower defaults, the lender should first make a formal demand for payment while threatening legal action, rather than using threats or violence. The sample letter demands full payment within 14 days, or the lender will take legal action to recover costs and the loan amount. It states any partial payment will be accepted without prejudice to the lender's full claim.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Loan Payment Default

    One of the most important terms of a loan agreement or a loan letter is the payment term which would provide for the loan to be paid on or before the due date. However, some ungrateful people would just intentionally default in making payment until some form of pressure is applied on them. Instead of sending thugs to collect the loan from the recalcitrant borrower, a better way is to enforce the legal rights in the loan agreement or the loan letter by making a formal demand for payment and simultaneously threatening the borrower with legal action unless the demand is complied with. If the demand is still not complied with, then get a lawyer to sue the borrower. Never, never, never break the borrower's head or any other part of his body.

    Letter of Demand
    A sample of a letter of demand for loan payment is set-out below. It is provided as a guide only and shall not in any way whatsoever be taken to constitute, or be relied upon as, legal advice. -- START of sample loan payment demand letter ----Name of borrower Address Dear Mr. Borrower, Loan of [state amount of loan] Loan Agreement dated [date of agreement] We refer to the above matter. As you are aware, we had granted to you a loan in the sum of [amount of loan] at your request subject to and upon the terms and conditions of the Loan Agreement dated [date of agreement] made between you and ourselves. It was a term of the Loan Agreement that you are to pay the full amount of the loan on or before [date of repayment]. Despite our repeated requests for payment, you have failed and/or neglected to pay the said loan and/or any part thereof to us. Since you have breached the terms and conditions of the Loan Agreement, please be informed that the Loan Agreement has been terminated and we hereby demand from you the full amount of the loan in the sum of [amount of loan].

    TAKE NOTICE that in the event the full amount of the loan is not received within FOURTEEN (14) DAYS from the date hereof, we will not hesitate to instruct our [lawyer/attorney/solicitor] to commence legal proceedings against you for recovery of the same. In such instance, you will be further liable for costs and expenses incurred thereon. TAKE FURTHER NOTICE that in the event only partial repayment is tendered by you, such partial payment will be accepted strictly on a without prejudice basis to our full right of claim against you. Yours sincerely,

    Name : Date : -- END of sample loan payment demand letter -----

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