# Payable on Demand Agreement
**This Payable on Demand Agreement ("Agreement") is made and entered into as of [Date], by and between:**
**[Lender's Name]**
[Address]
[City, State, Zip Code]
("Lender")
and
**[Borrower's Name]**
[Address]
[City, State, Zip Code]
("Borrower")
## 1. Loan Amount
The Lender agrees to loan the Borrower the sum of **$[Amount]** (the "Loan Amount").
## 2. Terms of Repayment
The Borrower agrees to repay the Loan Amount to the Lender on demand. The Borrower acknowledges and accepts that the Lender may demand repayment at any time.
## 3. Interest Rate
The Borrower agrees to pay interest on the Loan Amount at the rate of **[Interest Rate]% per annum**, calculated from the date the Loan Amount is disbursed until the Loan Amount is fully repaid.
## 4. Payment Method
Payments shall be made by the Borrower to the Lender in lawful money of the United States of America, and shall be delivered to the Lender's address specified above, or to such other address as the Lender may designate in writing.
## 5. Late Payment
In the event that the Borrower fails to repay the Loan Amount in full upon demand, the Borrower agrees to pay a late fee of **$[Late Fee Amount]** for each month that the payment remains outstanding.
## 6. Prepayment
The Borrower shall have the right to prepay the Loan Amount in full or in part at any time without any penalty.
## 7. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
## 8. Entire Agreement
This Agreement constitutes the entire agreement between the parties hereto concerning the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.
## 9. Amendment
No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties.
## 10. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
## 11. Binding Effect
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, and assigns.
**IN WITNESS WHEREOF**, the parties hereto have executed this Payable on Demand Agreement as of the date first above written.
**LENDER:**
______________________________
[Lender's Name]
Date: _________________________
**BORROWER:**
______________________________
[Borrower's Name]
Date: _________________________
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*Note: This is a template and should be customized to meet the specific needs of the parties involved. It is recommended to consult with a qualified attorney before entering into any legal agreement.*