A lender can use a legal credit agreement to enforce the repayment if the borrower does not maintain the end of the agreement. In general, a credit agreement is more formal and less flexible than a debt instrument or IOU. This agreement is typically used for more complex payment agreements and often offers the lender greater protection, such as borrower guarantees and borrower guarantees and agreements. In addition, a lender can usually accelerate credit in the event of an event of default, that is, when the borrower misses a payment or goes bankrupt, the lender can immediately make the full amount of the loan, plus any interest due and payable. Renewal Contract (Loan) – Extends the maturity date of the loan. . . .