Internal Loan Agreement - Terms and Conditions

Sep 16, 2026

Terms and conditions for an internal credit facility between a borrower (a faculty or department) and an internal lender under an internal financing program. Defines the effective date, credit facility amount and mortgage amortization period, the fixed term and fixed interest rate (subject to lender discretion), and the purpose to finance a specified project. Establishes repayment via blended monthly principal and interest payments, allows penalty-free additional principal on the anniversary, and includes borrower covenants, amendment requirements, and whole-agreement language, plus signature and acknowledgement sections.

LanguageEnglish

CategoryLetters

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Terms and Conditions

Credit Facility and Term

Interest Rate, Purpose, and Repayment

Covenants, Amendments, and Whole Agreement

Signature and Acknowledgement

Appendix II Date Head of Faculty or Department Faculty or Department Address Dear : The following are the terms and conditions with respect to the $ credit facility. BORROWER Faculty or Department (the “borrower”) c/o Head of Faculty or Department Title Address LENDER Internal Financing Program (the “lender”) c/o Trevor Rodgers Chief Financial Officer 150 College Street, 3rd Floor Toronto, ON, M5S 3E2 EFFECTIVE DATE: The effective date of this agreement is . CREDIT FACILITY $ mortgage amortized over years. TERM: The term is fixed for years. INTEREST RATE: The fixed interest rate is % . This rate can be altered at the discretion of the Lender. PURPOSE: To finance the project. REPAYMENT: Borrowings under this facility shall be repayable by consecutive, blended equal monthly payments of principal and interest of $ based on an amortization period of years, commencing one month from the effective date of this agreement until the balance of this facility shall be repayable in full. An amortization table is provided in Appendix 1. The borrower shall have the option to make additional principal payments, without penalty, on the anniversary date of this agreement. The borrower shall provide from time to time to the lender accounts that will be used to process the monthly repayments of principal and interest. COVENANTS: The borrower hereby covenants: (a) to pay all sums of money when due under this agreement. (b) this agreement shall be binding upon the borrower’s successors. AMENDMENTS: No amendment of any provisions of this agreement will be effective unless it is in writing signed by the Borrower and the Lender. WHOLE AGREEMENT: This agreement constitutes the whole and entire agreement between the parties in respect of the credit facility. There are no verbal agreements, undertakings, or representations in connection with the credit facility. TIME: Time shall be of the essence in all provisions of this agreement. Please confirm your acceptance of this agreement by signing the attached copy of this letter in the space provided below and returning it to the undersigned. Sincerely, Anthony Tia Executive Director, Treasury & Investment Services We acknowledge and accept the foregoing terms and conditions. Faculty or Department By: Name: Title: The Internal Financing Program By: Name: Trevor Rodgers Title: Chief Financial Officer Sample agreement.doc

FAQs

What are the key terms defined in this internal loan agreement?

The agreement sets the effective date, credit facility amount, amortization period, fixed term, and fixed interest rate, plus the purpose for financing the project.

How are repayments made under the credit facility?

Borrowings are repaid through consecutive, blended equal monthly payments of principal and interest, starting one month after the effective date until the balance is fully repaid.

Can the borrower make extra payments before maturity?

Yes. The borrower may make additional principal payments without penalty on the anniversary date of the agreement.

Sep 16, 2026

Upload by Emma Mercer