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An individual or organization that practices predatory credit by calculating high-yield interest rates (known as a „credit hedge“). Each state has its own limits on interest rates (called „usury rate“) and credit hedges to be illegally calculated higher than the maximum allowed rate, although not all credit sharks practice illegally, but misceptively calculate the highest statutory interest rate. CONSIDERING that the lender lends to the borrower [inserting loans] and the borrower to the lender [insert the loan amount] (the „loan“) with interest on the unpaid loan up to [insert an interest rate] per year, the [commitment day at which the loan is signed]; and depending on the amount of money borrowed, the lender may decide to have the agreement approved in the presence of a notary. This is recommended if the total amount, the capital plus interest, is more than the maximum acceptable rate for the small claims court in the jurisdiction of the parties (usually 5,000 usd or 10,000 USD). determines all the terms and conditions of the loan, including the names and addresses of the borrower and lender, the amount of money borrowed, the number of payments, the amount of payments and the signatures of the parties. LIBOR: The London Interbank Offered Rate (LIBOR) is a daily benchmark rate based on rates at which banks can borrow unsecured funds from other banks. It is generally defined for the purposes of a facility agreement by reference to a screen interest rate (usually the British Bankers Association interest rate for the currency and the period in question) or at the base rate of the reference bank, which represents the average interest rate at which the Bank can borrow funds on the London interbank market. Private loan contract – For most loans from one individual to another. Loan contracts generally contain information on: the forms of loan contracts vary from industry to industry, from country to country, but, characteristically, a professionally developed commercial loan contract will contain the following conditions: Acceleration – A clause within a loan agreement that protects the lender by requiring the borrower to immediately repay the loan (both principal and accrued interest) if certain conditions occur. Interest is due at the end of each interest period, interest periods may be fixed periods (usually one, three or six months) or the borrower can choose the interest period for each loan (the options are usually one, three or six months). A loan agreement is a document between a borrower and a lender that explains a credit repayment plan.