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The first section contains the terms that are to be used in the document and their definitions. The second section is concerned with the operational terms relevant to the agreement, which means that it points out the amount to be borrowed, the schedule of its repayment, and the interest on the repayment. The second section of the loan agreement is of special interest for the financial agents of the borrower.
To put it simply, a construction loan agreement is made to any individual, business or group who needs to raise funds for a major building project. It could be something as simple as a single family home or something as complex as a shopping mall. The agreement itself is fairly simple in terms of how complex it is.
Prior to entering into a loan agreement, the "borrower" first makes representations about his affairs surrounding his character, creditworthiness, cashflow, and any collateral that he may have available to pledge as security for a loan. These representations are taken into consideration and the lender then determines under what conditions (terms), if any, they are prepared to advance money.
When you have a financial crisis, it is quite common that we search for various sources of funding. Though we might have helped our friends, they cannot do much when we are in need due to several reasons. If we maintain good credit score, then the best source for funding your needs is taking a loan that you can get through loan agreement process.