Legal English Challenge 2023 – Day 12

Read the short text about loan agreements, then select the correct option from the list to complete (1) ….. to (10) ….. .

Under a loan agreeement, the  ___1____agrees to provide a sum of money to a___2____, who promises to return the money to the creditor either in one ___3___ or in parts over a fixed period of time.

Prior to entering into a loan agreement, the future debtor first makes representations about his/her ___4___ (the opinion of a creditor regarding the ability of a person or business to settle its obligations when due), cashflow, and any ___5___ that s/he may have available to ___6____ as security for a loan.

Forms of loan agreements vary tremendously from industry to industry, country to country, but characteristically a commercial loan agreement will incorporate the following terms: repayment provisions; cancellation provisions; the ___7___ (the original amount of money borrowed without interest); interest rate and interest periods; events of default; ___8___  (the debt recovery process of unpaid and pending loans from the debtor) and remedies in the event of default; ___9___ damages; formulae for calculations; fees of the creditors; expenses; and ___10____  (the right of a debtor to balance mutual debts with a creditor).

Now, press the START button to select the correct option from the list to complete (1) ….. to (10) ….. .