If the document is confused, the borrower must question the document and see more clearly before signing. When the borrower signs the document, the person indicates that the document is clear, understood and correct. The contract may also contain these additional provisions: the interest calculated for a loan is paid by the State of origin and it is governed by the laws of the State on rates of usury. The rate of usury of each state varies, so it is important to know the interest rate before calculating an interest rate to the borrower. In this example, our loan comes from New York State, which has a maximum wear rate of 16% that we will use. Subsidized loans are loans that the federal government pays for their interest when the student is in CEGEP or if the loan is deferred, while the loan begins to collect interest as soon as it is contracted. Use LawDepot`s credit agreement template for business transactions, tuition, real estate purchases, down payments, or personal loans with friends and family….