Verbal Loan IOU

Recital

The words each party hears or reads before consenting. Bracketed names are the fields below.

The date is filled when consent is recorded; [date] is not one of the fields.

Fields

Clauses

1. Repayment

   [party_b] (the borrower) acknowledges receiving [amount_minor] in minor units of [currency] from [party_a] (the lender) and will repay it in full, in [currency], directly to [party_a], no later than [maturity_date]. In this clause, minor units means cents for USD and millionths of one USDC for USDC. Simple interest accrues on the unpaid principal at [rate_bps] basis points per year, calculated on the actual number of days elapsed over a 365-day year, from the date the borrower received the funds until the date the principal is repaid; a rate of 0 means the loan is interest-free. Accrued interest is due with the principal. The borrower may prepay all or part at any time without premium or penalty, and interest then accrues only on the principal still outstanding. Each payment is applied first to accrued interest and then to principal. Amounts are calculated and paid in whole minor units, with interest rounded down. If the stated rate would exceed the highest rate the governing law permits, the rate is reduced to that highest permitted rate, and any excess already paid is applied to principal or returned. Any amount unpaid after [maturity_date] remains due, and interest continues at the same rate until it is paid. This is an obligation between the borrower and the lender only. UnyKorn LLC is not a party to it, does not hold, send or receive any funds under it, and takes no share of it.

2. Governing law

   This agreement is governed by the law of the jurisdiction selected for it when the parties consent, chosen from the jurisdictions listed for this template, without regard to that jurisdiction's conflict-of-laws rules. Where the selected jurisdiction is the United Arab Emirates, the governing law is the law of the Dubai International Financial Centre (DIFC). If no jurisdiction is selected, the law of the State of Wyoming applies.

3. Arbitration

   Any dispute arising out of or relating to this agreement, including its formation, is finally resolved by confidential arbitration before a single arbitrator, seated in the jurisdiction whose law governs this agreement; where the selected jurisdiction is the United Arab Emirates, the seat is the Dubai International Financial Centre (DIFC). The arbitration follows rules the parties agree in writing or, failing agreement within 30 days of a written notice of dispute, the UNCITRAL Arbitration Rules. The language of the arbitration is English. Judgment on the award may be entered in any court with jurisdiction. Either party may ask a court for urgent interim relief to protect confidential information or preserve the status quo pending the arbitration.

Jurisdiction notes

The regime notes from the Legal-X jurisdiction dossiers, for each jurisdiction this template is written for.

Legal footing

ESIGN (15 U.S.C. §7006(5)) and UETA define an electronic signature as an electronic sound, symbol or process attached to or logically associated with a record and executed with intent to sign; a recorded recital with intent qualifies. eIDAS (EU) Art. 3(10) defines a simple electronic signature as data in electronic form attached to or logically associated with other data and used by the signatory to sign. Singapore and Hong Kong ETAs are similar. Enforceability depends on the facts and the forum.

Orientation, not legal advice; counsel to confirm.