# Hypothecation Agreement
**This Hypothecation Agreement (the "Agreement") is made and entered into as of [Date], by and between:**
**1. [Borrower’s Name]**
Address: [Borrower’s Address]
(“Borrower”)
**2. [Lender’s Name]**
Address: [Lender’s Address]
(“Lender”)
**RECITALS**
WHEREAS, Borrower has requested a loan from Lender; and
WHEREAS, Lender has agreed to extend said loan to Borrower under certain conditions;
NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties agree as follows:
## 1. LOAN AMOUNT
Lender agrees to lend Borrower the sum of [Loan Amount] (the "Loan").
## 2. HYPOTHECATION
To secure the payment and performance of all obligations under this Agreement, Borrower hereby hypothecates, pledges, and grants Lender a security interest in the following property (the "Collateral"):
- [Description of the Collateral, e.g., specific assets, inventory, accounts receivable, etc.]
## 3. OBLIGATIONS
Borrower agrees to:
- Repay the Loan in accordance with the terms set forth in this Agreement.
- Maintain and preserve the Collateral in good condition.
- Not sell, transfer, or encumber the Collateral without Lender's prior written consent.
## 4. INTEREST RATE
The Loan shall bear interest at the rate of [Interest Rate]% per annum, calculated [Monthly/Annually] until paid in full.
## 5. PAYMENT TERMS
Borrower agrees to make payments to Lender as follows:
- Principal repayment schedule: [e.g., monthly installments, maturity date]
- Any late payment shall incur a fee of [Late Fee Amount].
## 6. DEFAULT
Borrower shall be in default if:
- Any payment is not made within [Number of Days] days after its due date.
- Borrower breaches any covenant or agreement contained in this Agreement.
In the event of default, Lender shall have the right to:
- Demand immediate payment of the entire outstanding balance.
- Foreclose on and sell the Collateral in accordance with applicable law.
## 7. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the state of [State].
## 8. AMENDMENT
This Agreement may only be amended or modified in writing, signed by both parties.
## 9. NOTICES
All notices or demands required under this Agreement shall be in writing and shall be deemed duly given when delivered in person, sent via certified mail, or via electronic mail to the addresses set forth above.
## 10. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements or understandings, whether written or oral, relating to the subject matter hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Hypothecation Agreement as of the day and year first above written.
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**BORROWER**
Signature: __________________________
Name: [Borrower’s Name]
Date: ______________________________
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**LENDER**
Signature: __________________________
Name: [Lender’s Name]
Date: ______________________________
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**Witness:**
Signature: __________________________
Name: [Witness Name]
Date: ______________________________
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**Note:** This document is a template and may need to be tailored to fit specific requirements or legal standards. Parties are encouraged to seek legal counsel before entering into any agreements.