A shareholder loan agreement is a legal contract that outlines the terms and conditions of a loan made by a shareholder to a corporation. This type of agreement is often used when a corporation needs additional funding to operate or expand its business, and the shareholders are willing to lend money to the corporation.

Like any legal contract, a shareholder loan agreement must be carefully drafted to ensure that all parties understand the terms and conditions of the loan. Here`s an example of what a typical shareholder loan agreement might look like:

1. Parties involved: The agreement should clearly identify the parties involved in the loan, including the shareholder(s) and the corporation.

2. Loan amount: The agreement should state the total amount of the loan, as well as the currency in which it will be paid.

3. Interest rate: The agreement should specify the interest rate that will be charged on the loan. This may be a fixed rate or a variable rate that is tied to a benchmark such as the prime rate.

4. Repayment terms: The agreement should outline the repayment terms for the loan, including the frequency of payments, the length of the repayment period, and any penalties for late payments.

5. Security: The agreement should specify any collateral or security that the shareholder is providing to guarantee the loan.

6. Prepayment: The agreement should state whether the shareholder is allowed to prepay the loan without penalty.

7. Default: The agreement should outline the consequences of defaulting on the loan, including any penalties or legal action that may be taken.

8. Governing law: The agreement should specify the jurisdiction and laws that will govern the loan agreement.

9. Signatures: The agreement should be signed by all parties involved, including the shareholder(s) and the corporation.

A well-written shareholder loan agreement can help ensure that all parties involved understand their rights and obligations, and can help prevent disputes and misunderstandings down the line. If you`re considering entering into a shareholder loan agreement, it`s important to consult with a legal professional who can help you draft a customized agreement that meets your specific needs.