# Nonrecourse Agreement
**This Nonrecourse Agreement (the "Agreement") is made and entered into as of [Date], by and between:**
**(1) [Lender's Name]**
Address: [Lender's Address]
City, State, Zip: [City, State, Zip]
Email: [Lender's Email]
Phone: [Lender's Phone Number]
**AND**
**(2) [Borrower's Name]**
Address: [Borrower's Address]
City, State, Zip: [City, State, Zip]
Email: [Borrower's Email]
Phone: [Borrower's Phone Number]
**WHEREAS:**
1. Lender has agreed to lend a certain amount of money to the Borrower as specified below.
2. The Borrower agrees to repay the loan as set forth in this Agreement, subject to the nonrecourse provision of this Agreement.
## 1. LOAN AMOUNT
The principal amount of the loan is:
**$[Loan Amount]**
## 2. LOAN TERM
The term of the loan shall be:
**[Loan Term]**
## 3. INTEREST RATE
The interest rate applicable to the loan shall be:
**[Interest Rate]% per annum**
## 4. REPAYMENT
4.1 The Borrower agrees to repay the loan amount, plus any accrued interest, according to the following repayment schedule:
**[Repayment Schedule]**
4.2 Payments shall be made to the Lender at the address specified above or such other address as the Lender may designate in writing.
## 5. NONRECOURSE PROVISION
5.1 This loan shall be nonrecourse to the Borrower. In the event of default, the Lender's sole remedy shall be the collateral that secures this loan and the Lender shall not seek any further recourse from the Borrower personally.
5.2 The Lender agrees that no legal action, collection efforts, or other remedies will be sought against the Borrower beyond the collateral pledged to secure this loan.
## 6. COLLATERAL
As security for the repayment of this loan, the Borrower shall provide the following collateral:
**[Describe Collateral]**
## 7. DEFAULT
7.1 The Borrower shall be considered in default if any of the following occurs:
- Failure to make a payment when due.
- Insolvency or bankruptcy of the Borrower.
- Any misrepresentation or breach of this Agreement.
7.2 Upon default, the Lender may take possession of the collateral in accordance with applicable law but may not pursue the Borrower personally for any outstanding amounts.
## 8. MISCELLANEOUS
8.1 **Governing Law:** This Agreement shall be governed by and construed in accordance with the laws of the State of [Your State].
8.2 **Entire Agreement:** This Agreement constitutes the entire agreement between the parties and supersedes any prior agreement, whether written or oral.
8.3 **Amendments:** This Agreement may only be amended in writing, signed by both parties.
8.4 **Severability:** If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
8.5 **Notices:** All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, or sent by registered mail, or by electronic mail to the addresses indicated above.
## IN WITNESS WHEREOF
The parties hereto have executed this Nonrecourse Agreement as of the day and year first above written.
**[Lender's Name]**
Signature: _______________________
Date: ____________________________
**[Borrower's Name]**
Signature: _______________________
Date: ____________________________
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This template is for informational purposes only and does not constitute legal advice. It is advisable to consult with an attorney or legal professional to ensure that any agreement aligns with state laws and the specifics of the transaction at hand.