Documents a lender's agreement to temporarily refrain from exercising default remedies while the borrower cures or restructures, in exchange for acknowledgment of the default and specific borrower obligations.
The Forbearance Agreement is a ready-to-use finance & investment template you can send for signature in minutes. It is written for 2 signers (borrower and lender) and, by default, expires 30 days after it is sent if left unsigned. It covers forbearance, default, workout, loan modification, commercial finance, lender rights. Like every Abundera Sign template it is a convenience draft structured for ESIGN Act and UETA compliance, not a substitute for legal advice. Each signed copy is sealed with PAdES-LTA digital signatures, dual RFC 3161 timestamps, and a tamper-evident evidence package in WORM storage.
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# Forbearance Agreement This Forbearance Agreement (this "Agreement") is entered into as of ___________ by and between: **Borrower:** ___________, a ___________ ("Borrower"); and **Lender:** ___________, a ___________ ("Lender"). --- ## Recitals A. Pursuant to that certain ___________ dated ___________ (together with all amendments, modifications, and related documents, the "Loan Documents"), Lender made a loan to Borrower in the original principal amount of ___________ (the "Loan"). B. As of the date of this Agreement, the outstanding principal balance of the Loan is ___________, accrued and unpaid interest is ___________, and other fees and charges outstanding total ___________ (collectively, the "Outstanding Balance"). C. The following Events of Default have occurred and are continuing under the Loan Documents (collectively, the "Existing Defaults"): ___________ D. Borrower has acknowledged the Existing Defaults and has requested that Lender temporarily refrain from exercising its rights and remedies arising from the Existing Defaults while Borrower pursues a cure or restructuring. E. Lender is willing to forbear from exercising certain remedies during the Forbearance Period (as defined below), subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows. --- ## 1. Acknowledgment of Default and Indebtedness ### 1.1 Acknowledgment of Existing Defaults Borrower unconditionally and irrevocably acknowledges and agrees that: (a) the Existing Defaults have occurred and are continuing; (b) as a result of the Existing Defaults, Lender has the right to exercise all rights and remedies available under the Loan Documents and applicable law, including the right to accelerate all amounts due under the Loan, to foreclose on or otherwise realize upon any collateral, and to pursue any judgment against Borrower; and (c) Lender has not waived the Existing Defaults and is not waiving any rights or remedies as a result of entering into this Agreement.