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In this tutorial, the host explains how to write a payment agreement, a legally binding document between a lender and borrower detailing loan terms such as amount, payment schedule, and penalties. To begin, the opening statement should affirm that the signer understands and accepts financial responsibility, with a declaration of the agreed payment amount and timeline. The second key aspect involves detailing penalties for late payments, noting that each agreement can vary in percentage and amounts stipulated for non-compliance. The tutorial emphasizes using a template to structure these elements effectively.
