[{"data":1,"prerenderedAt":535},["ShallowReactive",2],{"document-forbearance-agreement-D12966":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":37,"customDescModule":181,"customdescription":6,"mdFm":182,"mdProseHtml":534},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"FORBEARANCE AGREEMENT This Forbearance Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [NAME OF THE LENDER] (the \"Lender\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF THE BORROWER] (the \"Borrower \"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Lender has made a loan to the Borrower in the original principal amount of [LOAN AMOUNT] (the \"Loan\") pursuant to that certain Loan Agreement, by and between the Lender and the Borrower, dated as of [MONTH] [DAY], [YEAR] (the \"Loan Agreement\") and certain related agreements, as the same may have been or may be further amended, modified, supplemented, extended, renewed, restated, or replaced (collectively, the \"Loan Documents\"). All capitalized terms not defined herein shall have the meanings ascribed to them in the Loan Documents. WHEREAS, the Loan is secured by that certain [NAME OF MORTGAGE/DEED OF TRUST OR OTHER SECURITY INSTRUMENT] covering certain real property owned by the Borrower as more specifically set forth in the Loan Documents. WHEREAS, Events of Default under the Loan Documents have occurred, specifically [DEFAULTS] (\"Existing Defaults\"). Pursuant to the terms of the Loan Documents, all obligations of the Borrower to the Lender under the Loan Documents can now be declared by the Lender to be immediately due and payable. The Borrower has requested that the Lender forbear from exercising its rights and remedies under the Existing Defaults, and the Lender has agreed to do so, subject to the terms and conditions set forth herein. NOW THEREFORE, for good and valuable consideration, set forth herein, the Lender, the Borrower, and each Guarantor agree as follows: RECITALS AND PERIOD OF FORBEARANCE The recitals to this Agreement are incorporated into this Agreement as if fully set forth herein. Upon satisfaction of the conditions set forth in this Agreement, the Lender shall forbear (the \"Forbearance\") from exercising its rights and remedies under the Loan Documents arising from the Existing Default for the Forbearance Period (as defined in Section 3.2). ACKNOWLEDGEMENTS The Borrower hereby agrees that as of [DATE], the Borrower is indebted to the Lender under the Loan Documents in the amount of [AMOUNT OWED]. All such amounts and all hereafter accruing principal, fees, and interest are unconditionally owed by the Borrower to the Lender without offset, defence, or counterclaim of any nature. The Borrower hereby agrees that (i) each of the Loan Documents has been duly executed and shall remain in full force and effect as of the Effective Date of this Agreement, except as expressly modified herein; (ii) the agreements and obligations of the Borrower contained in the Loan Documents and this Agreement are valid and binding, enforceable against the Borrower in accordance with the terms of the Loan Documents and Agreement; (iii) the Borrower has no valid defence to the enforcement of the Borrower's obligations under the Loan Documents and this Agreement; and (iv) the Lender is and shall be entitled to the rights and remedies provided for under the Loan Documents, this Agreement and applicable law. [Each Guarantor hereby agrees that (i) each of the Guaranty Documents has been duly executed and shall remain in full force and effect as of the Effective Date of this Agreement, except as expressly modified herein; (ii) the agreements and obligations of the Guarantor contained in the Guaranty Documents and this Agreement are valid and binding, enforceable against the Guarantor in accordance with the terms of the Guaranty Documents and this Agreement; (iii) the Guarantor has no valid defence to the enforcement of the Guarantor's obligations under the Guaranty Documents and this Agreement; and (iv) the Lender is and shall be entitled to the rights and remedies provided for under the Guaranty Documents, this Agreement and applicable law.] FORBEARANCE IN RESPECT OF EXISTING DEFAULTS The Borrower hereby acknowledges and agrees that the Existing Defaults have occurred and are continuing, each of which constitutes an Event of Default and entitles the Lender to exercise its rights and remedies under the Loan Documents and applicable law. The Borrower represents and warrants that, as of the Effective Date, no other Events of Default exist other than the Existing Defaults. The Borrower hereby acknowledges and agrees that the Lender is entitled under the terms of the Loan Documents to, among other remedies, declare the Borrower's obligations under the Loan Documents to be immediately due and payable. Forbearance: In reliance upon the representations, recitals, warranties, and covenants of the Borrower made in this Agreement, and subject to the terms and conditions of this Agreement and any documents or instruments executed in connection with this Agreement, the Lender agrees to forbear from exercising its rights and remedies under the Loan Documents or applicable law arising out of the Existing Defaults, for the period (the \"Forbearance Period\") commencing on the Effective Date and ending on the date which is the earlier of (a) [MONTH] [DAY], [YEAR], or (b) the occurrence or existence of any Event of Default, other than any Existing Default. Upon the termination of the Forbearance Period, the agreement of the Lender to forbear shall automatically and without further action terminate and be of no force and effect, it being expressly agreed that the effect of such termination will be to permit the Lender to exercise immediately all rights and remedies under the Loan Documents and applicable law, including, but not limited to, (a) ceasing to make any further Loans, and (b) accelerating all of the obligations of the Borrower under the Loan Documents; in each case without any further notice to the Borrower or forbearance of any kind. The Parties to this Agreement acknowledge and agree that any misrepresentation by the Borrower or the Guarantor (hereinafter referred to as \"the Borrowing Parties\" for this section 3.2.3) or any failure of the Borrowing Parties to comply with the covenants, conditions and agreements contained in this Agreement, the Loan Documents [the Guaranty Documents] or any other agreement, document or instrument at any time executed and/or delivered by the Borrowing Parties with, to or in favour of the Lender shall constitute an Event of Default under this Agreement and the Loan Documents. No Other Waivers; Reservation of Rights: The Lender has not waived, and is not by this Agreement waiving, any Existing Defaults or any Events of Default which may occur after the Effective Date, and the Lender has not agreed to forbear with respect to any of its rights and remedies concerning any Event of Default, except for Existing Defaults as set forth in this Agreement. Subject to Section 3 herein, the Lender reserves the right, in its discretion, to exercise any or all of its rights and remedies under the Loan Documents as a result of any other Events of Default occurring at any time. The Lender has not waived any such rights and remedies, and nothing in this Agreement, and no delay on its part in exercising such rights or remedies, shall be construed as a waiver of such rights and remedies. REPRESENTATIONS AND WARRANTIES OF BORROWER The Borrower hereby represents, warrants, and covenants as follows:",null,"Forbearance Agreement","7",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/forbearance-agreement-D12966.png","https://templates.business-in-a-box.com/imgs/250px/12966.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12966.xml",{"title":15,"description":6},"forbearance agreement",[17,20],{"label":18,"url":19},"Business Plan Kit","/templates/business-plan-kit/",{"label":21,"url":22},"Administration","/templates/business-administration/","Forbearance Agreement Template","https://templates.business-in-a-box.com/imgs/400px/12966.png",[26,17,20],{"label":27,"url":28},"Templates","/templates/",[30,31,34],{"label":27,"url":28},{"label":32,"url":33},"Legal Agreements","/templates/business-legal-agreements/",{"label":35,"url":36},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[38,42,46,50,54,58,62,66,70,74,78,82,86,102,116,137,151,167],{"label":39,"url":40,"thumb":41,"extension":10},"Forbearance Agreement With Release Provision","/template/forbearance-agreement-with-release-provision-D878","https://templates.business-in-a-box.com/imgs/250px/878.png",{"label":43,"url":44,"thumb":45,"extension":10},"Non-Profit Partnership Agreement","/template/non-profit-partnership-agreement-D14023","https://templates.business-in-a-box.com/imgs/250px/14023.png",{"label":47,"url":48,"thumb":49,"extension":10},"Acquisition Agreement","/template/acquisition-agreement-D847","https://templates.business-in-a-box.com/imgs/250px/847.png",{"label":51,"url":52,"thumb":53,"extension":10},"Amalgamation Agreement","/template/amalgamation-agreement-D855","https://templates.business-in-a-box.com/imgs/250px/855.png",{"label":55,"url":56,"thumb":57,"extension":10},"Arbitration Agreement","/template/arbitration-agreement-D856","https://templates.business-in-a-box.com/imgs/250px/856.png",{"label":59,"url":60,"thumb":61,"extension":10},"Attorney Agreement","/template/attorney-agreement-D862","https://templates.business-in-a-box.com/imgs/250px/862.png",{"label":63,"url":64,"thumb":65,"extension":10},"Bonus Agreement","/template/bonus-agreement-D13815","https://templates.business-in-a-box.com/imgs/250px/13815.png",{"label":67,"url":68,"thumb":69,"extension":10},"Caregiver Agreement","/template/caregiver-agreement-D13510","https://templates.business-in-a-box.com/imgs/250px/13510.png",{"label":71,"url":72,"thumb":73,"extension":10},"Charter Agreement","/template/charter-agreement-D13440","https://templates.business-in-a-box.com/imgs/250px/13440.png",{"label":75,"url":76,"thumb":77,"extension":10},"Coaching Agreement","/template/coaching-agreement-D13221","https://templates.business-in-a-box.com/imgs/250px/13221.png",{"label":79,"url":80,"thumb":81,"extension":10},"Collaboration Agreement","/template/collaboration-agreement-D13222","https://templates.business-in-a-box.com/imgs/250px/13222.png",{"label":83,"url":84,"thumb":85,"extension":10},"Compliance Agreement","/template/compliance-agreement-D13823","https://templates.business-in-a-box.com/imgs/250px/13823.png",{"description":87,"descriptionCustom":6,"label":88,"pages":89,"size":9,"extension":10,"preview":90,"thumb":91,"svgFrame":92,"seoMetadata":93,"parents":95,"keywords":94,"url":101},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":94,"description":6},"secured lumpsum promissory note agreement",[96,98],{"label":18,"url":97},"business-plan-kit",{"label":99,"url":100},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",{"description":103,"descriptionCustom":6,"label":104,"pages":105,"size":9,"extension":10,"preview":106,"thumb":107,"svgFrame":108,"seoMetadata":109,"parents":111,"keywords":110,"url":115},"Payment Plan Agreement By this contract, [BORROWER'S NAME] agrees to pay for the services rendered by [NAME OF THE LENDER], hereafter known as \"Lender,\" by the following schedule in exchange for [SPECIFY]. By this agreement, it is agreed that a payment of [SPECIFY AMOUNT] will be surrendered to the Lender every [WEEK/MONTH], for the next [SPECIFY THE NUMBER OF WEEKS/MONTHS] until the total of the payment required, which is [SPECIFY] has been delivered. The first payment will start [SPECIFY DATE] and will end [SPECIFY DATE]. The payment schedule will take the following form:","Payment Plan Agreement","1","https://templates.business-in-a-box.com/imgs/1000px/payment-plan-agreement-D12663.png","https://templates.business-in-a-box.com/imgs/250px/12663.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12663.xml",{"title":110,"description":6},"payment plan agreement",[112,114],{"label":32,"url":113},"business-legal-agreements",{"label":32,"url":113},"/template/payment-plan-agreement-D12663",{"description":117,"descriptionCustom":6,"label":118,"pages":119,"size":120,"extension":10,"preview":121,"thumb":122,"svgFrame":123,"seoMetadata":124,"parents":125,"keywords":135,"url":136},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[126,129,132],{"label":127,"url":128},"Finance & Accounting","finance-accounting",{"label":130,"url":131},"Business Loans","business-loan",{"label":133,"url":134},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":138,"descriptionCustom":6,"label":139,"pages":140,"size":9,"extension":10,"preview":141,"thumb":142,"svgFrame":143,"seoMetadata":144,"parents":146,"keywords":149,"url":150},"SERVICE AGREEMENT This SERVICE AGREEMENT (\"Agreement\") is effective [DATE], BETWEEN: [COMPANY NAME] (the \"Contractor\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Customer\"), a company organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] (The Contractor and the Customer shall be individually referred to as a \"Party\" and collectively referred to as the \"Parties\", as the context may require). WHEREAS A. Contractor has experience and expertise in [DESCRIBE EXPERIENCE AND SERVICE]. B. Customer desires to have Contractor provide services for them. C. Contractor desires to provide services to Customer on the terms and conditions set forth herein (the \"Services\"). NOW THEREFORE, in consideration of the above recitals, the representations, warranties, and agreements contained in this Agreement and for other good and valuable consideration, the receipt and adequacy of which are now acknowledged, the Parties agree as follows: SERVICES PROVIDED Beginning on upon agreement to this contract, [CONTRACTOR] will provide to [CUSTOMER] the following service (collectively, the /Services\"): Description of the project: [DESCRIBE THE SERVICE REQUIRED]. SCOPE OF WORK Contractor agrees to provide Services pursuant to the Scope of Work set forth in Exhibit A attached hereto (the \"Scope of Work\"). TERM Unless both parties mutually agree on an extension, this contract will automatically terminate on [SPECIFY]. PERFORMANCE The parties agree to do everything possible to ensure that the terms of this Agreement take effect. PAYMENT FOR SERVICES In exchange for the Services rendered, a payment of [SPECIFY] will be made to the Contractor upon completion of the scheduled Services described in this Contract. If an invoice is not paid on the due date, interest will be added to the current balance. These amounts shall be payable, and the Customer shall pay all overdue amounts at the lesser of [SPECIFY] per cent per annum or the maximum percentage permitted by applicable law. Or Customer will pay Contractor as follows: [SPECIFY]. DELIVERY OF SERVICES The Contractor will exercise due diligence in the provision of services. However, the Customer acknowledges that the indicated delivery times and other payment milestones listed in Scope of Work are estimates and do not constitute final delivery dates. SECURITY The Contractor must make reasonable security arrangement to protect Material from unauthorized access, collection, use, alteration or disposal. OWNERSHIP RIGHT The Customer shall hold the copyright for the agreed version of the Services as delivered, and the Customer's copyright notice may be displayed in the final version. All works, ideas, discoveries, inventions, patents, products or other information that may be protected by copyright (collectively, the \"Work Product\" developed in whole or in part by the Contractor in connection with the Services, shall be the exclusive property of the Customer. Upon request, the Contractor shall execute all documents necessary to confirm or perfect the exclusive ownership of the Customer's \"Work Product\". The Contractor retains exclusive rights to pre-existing materials used in the Customer's projects. The Customer shall not have the right to reuse, resell or otherwise transfer material belonging to the contractor or third parties. The Contractor reserves the right to use the finished public product as an example of a product. RETURN OF PROPERTY Upon the expiry or termination of this Agreement, the Contractor will return to the Customer any property, documentation, records or Confidential Information which is the property of the Customer. COMPENSATION For all services rendered by the Contractor under this Agreement, the Customer shall indemnify the Contractor. In the event that the Customer fails to make any of the payments mentioned, the Contractor shall have the right, but shall not be obliged, to exercise any of the following remedies: ","Service Agreement","6","https://templates.business-in-a-box.com/imgs/1000px/service-agreement-D12711.png","https://templates.business-in-a-box.com/imgs/250px/12711.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12711.xml",{"title":145,"description":6},"service agreement",[147,148],{"label":32,"url":113},{"label":32,"url":113},"loan agreement","/template/loan-agreement-D12711",{"description":152,"descriptionCustom":6,"label":153,"pages":154,"size":9,"extension":10,"preview":155,"thumb":156,"svgFrame":157,"seoMetadata":158,"parents":160,"keywords":159,"url":166},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","2","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":159,"description":6},"personal guarantee",[161,162,163],{"label":127,"url":128},{"label":130,"url":131},{"label":164,"url":165},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":168,"descriptionCustom":6,"label":169,"pages":170,"size":171,"extension":10,"preview":172,"thumb":173,"svgFrame":174,"seoMetadata":175,"parents":176,"keywords":179,"url":180},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[177,178],{"label":32,"url":113},{"label":32,"url":113},"security agreement","/template/security-agreement-D915",false,{"seo":183,"reviewer":195,"quick_facts":199,"at_a_glance":202,"personas":206,"variants":231,"glossary":256,"clauses":293,"how_to_fill":344,"common_mistakes":385,"faqs":410,"industries":438,"comparisons":463,"diy_vs_lawyer":477,"jurisdictions":490,"related_template_ids_curated":511,"schema":521,"classification":522},{"meta_title":184,"meta_description":185,"primary_keyword":186,"secondary_keywords":187},"Forbearance Agreement Template | BIB","Free forbearance agreement template for lenders and borrowers. Covers payment deferrals, waiver of default, conditions, and cure periods.","forbearance agreement template",[15,188,189,190,191,192,193,194],"loan forbearance agreement template","forbearance agreement word","forbearance agreement free download","creditor forbearance agreement","mortgage forbearance agreement template","debt forbearance agreement","forbearance agreement sample",{"name":196,"credential":197,"reviewed_date":198},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":200,"legal_review_recommended":201,"signature_required":201},"advanced",true,{"what_it_is":203,"when_you_need_it":204,"whats_inside":205},"A Forbearance Agreement is a binding legal contract between a lender and a borrower in which the lender agrees to temporarily refrain from enforcing its remedies — such as calling the loan, initiating foreclosure, or filing suit — while the borrower works to cure a default or restructure repayment. This free Word download gives you a professionally structured starting point you can edit online and export as PDF for execution by both parties.\n","Use it when a borrower has missed payments or breached a loan covenant and both parties prefer a structured workout over immediate enforcement. It is also used proactively when a known cash-flow shortfall is approaching and the lender is willing to grant temporary relief in exchange for documented commitments from the borrower.\n","Identification of parties and the underlying loan, acknowledgment of existing defaults, the lender's forbearance commitment and duration, borrower's cure obligations and milestones, representations and conditions, waiver limitations, and governing law with default-reinstatement triggers.\n",[207,211,215,219,223,227],{"title":208,"use_case":209,"icon_asset_id":210},"Commercial lenders and banks","Formalizing temporary payment relief for a distressed business borrower","persona-lender",{"title":212,"use_case":213,"icon_asset_id":214},"Small business owners","Negotiating a structured cure period after missing loan payments","persona-small-business-owner",{"title":216,"use_case":217,"icon_asset_id":218},"Real estate investors","Deferring mortgage enforcement while refinancing or selling an asset","persona-real-estate-investor",{"title":220,"use_case":221,"icon_asset_id":222},"CFOs and finance directors","Managing a covenant breach with a lender before formal default proceedings","persona-cfo",{"title":224,"use_case":225,"icon_asset_id":226},"Private equity and credit funds","Granting short-term forbearance to portfolio companies with liquidity issues","persona-private-equity",{"title":228,"use_case":229,"icon_asset_id":230},"Workout and restructuring attorneys","Documenting agreed standstill terms during out-of-court debt restructuring","persona-attorney",[232,236,240,244,247,250,253],{"situation":233,"recommended_template":234,"slug":235},"Lender deferring enforcement on a commercial real estate mortgage","Real Estate Forbearance Agreement","real-estate-operating-agreement-D14043",{"situation":237,"recommended_template":238,"slug":239},"Bank granting payment relief on a business term loan","Commercial Loan Forbearance Agreement","forbearance-agreement-D12966",{"situation":241,"recommended_template":242,"slug":243},"Modifying ongoing loan terms permanently rather than temporarily deferring","Loan Modification Agreement","secured-lumpsum-promissory-note-agreement-D13041",{"situation":245,"recommended_template":246,"slug":243},"Settling an existing debt for less than the full amount owed","Debt Settlement Agreement",{"situation":248,"recommended_template":104,"slug":249},"Creditor agreeing to accept partial or delayed payments on a trade debt","payment-plan-agreement-D12663",{"situation":251,"recommended_template":252,"slug":243},"Restructuring multiple debts with several creditors simultaneously","Debt Restructuring Agreement",{"situation":254,"recommended_template":255,"slug":249},"Pausing enforcement of a judgment while the debtor pays in installments","Stipulation for Settlement and Payment Plan",[257,260,263,266,269,272,275,278,281,284,287,290],{"term":258,"definition":259},"Forbearance","A lender's voluntary decision to refrain from exercising legal remedies it is otherwise entitled to pursue when a borrower is in default.",{"term":261,"definition":262},"Default","A borrower's failure to meet a contractual obligation under a loan agreement — including missing a payment, breaching a covenant, or failing to maintain required insurance.",{"term":264,"definition":265},"Forbearance Period","The defined window of time during which the lender agrees to hold off on enforcement actions, typically expressed as a specific number of days or a calendar date range.",{"term":267,"definition":268},"Cure Period","The time granted to a borrower to remedy a specific default before the lender can exercise remedies — distinct from the forbearance period, which covers the broader standstill.",{"term":270,"definition":271},"Acknowledgment of Default","A provision in which the borrower confirms that a default has occurred, preventing later disputes about whether the default existed at all.",{"term":273,"definition":274},"Waiver","A lender's relinquishment of a specific right — such as the right to charge a late fee for a missed payment — which the forbearance agreement may grant or explicitly disclaim.",{"term":276,"definition":277},"Reinstatement Trigger","A defined event — such as missing a milestone payment or breaching a forbearance condition — that immediately terminates the standstill and restores all lender remedies.",{"term":279,"definition":280},"Workout","An informal out-of-court process in which a lender and borrower negotiate revised terms to resolve a distressed debt situation without litigation or bankruptcy.",{"term":282,"definition":283},"Covenant","A contractual obligation in a loan agreement — financial covenants require the borrower to maintain certain ratios; affirmative covenants require specific actions; negative covenants prohibit certain actions.",{"term":285,"definition":286},"Acceleration","A lender's right to demand the full outstanding loan balance become immediately due and payable upon a borrower's default, rather than on the original repayment schedule.",{"term":288,"definition":289},"Standstill","An agreement by a creditor to take no enforcement action for a defined period, used interchangeably with forbearance in some jurisdictions.",{"term":291,"definition":292},"Deficiency","The remaining amount owed by a borrower after collateral is liquidated, if the collateral's value does not cover the full outstanding debt.",[294,299,304,309,314,319,324,329,334,339],{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Recitals and Background","Sets out the factual context — the original loan, existing default, and why both parties are entering into the forbearance arrangement.","WHEREAS, on [DATE], Lender made a loan to Borrower in the principal amount of $[AMOUNT] pursuant to that certain Loan Agreement dated [DATE] (the 'Loan Agreement'); WHEREAS, Borrower has failed to make the payment due on [DATE], constituting an Event of Default under Section [X] of the Loan Agreement; WHEREAS, Borrower has requested that Lender forbear from exercising its remedies, and Lender is willing to do so on the terms set forth herein.","Omitting the specific default being addressed. A vague recital that references 'various defaults' can cause disputes later about whether the agreement covered a particular breach.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Acknowledgment of Default and Indebtedness","The borrower formally admits that the default occurred and confirms the outstanding balance, accrued interest, and fees — waiving any defense to the existence of the debt.","Borrower hereby acknowledges and agrees that: (a) an Event of Default has occurred and is continuing under the Loan Agreement as a result of [SPECIFIC DEFAULT]; (b) the outstanding principal balance as of [DATE] is $[AMOUNT]; (c) accrued and unpaid interest as of [DATE] is $[AMOUNT]; and (d) Borrower has no defenses, offsets, or counterclaims against Lender with respect to the Loan.","Including a broad waiver of all defenses without legal review. A borrower should confirm the accuracy of the debt figures before acknowledging them in a binding document, as errors in the balance are difficult to unwind afterward.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Lender's Forbearance Commitment","The operative clause where the lender agrees to refrain from specific enforcement actions — foreclosure, acceleration, litigation, or exercising rights against collateral — for the duration of the forbearance period.","Subject to the terms and conditions of this Agreement, Lender agrees to forbear from exercising any of its rights and remedies under the Loan Documents with respect to the Existing Default during the period commencing on [START DATE] and ending on [END DATE] (the 'Forbearance Period'), unless earlier terminated pursuant to Section [X].","Failing to enumerate exactly which remedies are being suspended. A generic 'Lender will forbear' clause invites disputes about whether a specific action — such as sending a demand letter or refusing to advance further funds — was prohibited.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Forbearance Period and Milestones","Defines the start and end date of the standstill and sets any interim milestone payments or actions the borrower must complete to keep the agreement in effect.","The Forbearance Period shall commence on [DATE] and expire on [DATE] unless earlier terminated. During the Forbearance Period, Borrower shall: (a) make a good-faith payment of $[AMOUNT] on or before [DATE]; (b) deliver monthly financial statements within [15] days of each month end; and (c) not incur any additional indebtedness without Lender's prior written consent.","Setting milestone dates without any grace period. A borrower who misses a milestone by one day will trigger reinstatement of all lender remedies — often a disproportionate outcome that could have been avoided with a 5-business-day cure window.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Conditions to Forbearance","Lists what the borrower must deliver or represent to activate and maintain the lender's forbearance — such as execution of the agreement, payment of fees, or delivery of additional collateral.","Lender's obligation to forbear is conditioned upon: (a) Borrower's execution and delivery of this Agreement; (b) payment of a forbearance fee of $[AMOUNT] on or before [DATE]; (c) delivery of updated personal financial statements from each guarantor; and (d) no additional Event of Default occurring after the date hereof.","Omitting the forbearance fee or structuring it as waivable at the lender's discretion without documenting the agreement. Lenders frequently include a fee to compensate for the risk of delay; leaving it out weakens the lender's position.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Representations and Warranties of Borrower","The borrower confirms key facts as of the signing date — that it has the authority to enter the agreement, that no additional undisclosed defaults exist, and that information provided to the lender is accurate.","Borrower represents and warrants that: (a) it has full legal authority to execute and perform this Agreement; (b) except for the Existing Default, no other Event of Default has occurred or is continuing; (c) all financial information provided to Lender is true, complete, and not misleading; and (d) no bankruptcy or insolvency proceeding is pending or contemplated by Borrower.","Borrowers agreeing to represent 'no other defaults exist' without first conducting an internal audit. If an undisclosed default later surfaces, the misrepresentation voids the forbearance and may constitute fraud.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"No Waiver of Other Rights","Clarifies that the lender's decision to forbear on the specific identified default does not waive any other rights, including the right to enforce defaults not listed, or to enforce the same default once the forbearance period expires.","Nothing in this Agreement shall constitute a waiver of any Event of Default other than the Existing Default, nor shall it constitute a waiver of any right or remedy of Lender that is not expressly stated herein. Lender expressly reserves all rights and remedies under the Loan Documents and applicable law.","Drafting the no-waiver clause so broadly that it contradicts the forbearance commitment itself. Courts have struck down forbearance provisions where the no-waiver language rendered the lender's promise illusory.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Termination and Reinstatement of Remedies","Specifies the events that immediately end the forbearance and restore the lender's full rights — including failure to meet a milestone, a new default, or the borrower filing for bankruptcy.","The Forbearance Period shall terminate immediately and all Lender remedies shall be reinstated, without notice or cure period, upon the occurrence of any of the following: (a) Borrower fails to make any payment required hereunder when due; (b) any additional Event of Default occurs under the Loan Documents; (c) any representation made herein proves to have been false or misleading; or (d) Borrower commences or is subject to any bankruptcy, insolvency, or receivership proceeding.","Not including an automatic termination on bankruptcy filing. An automatic-stay in bankruptcy halts most lender actions, but a well-drafted termination clause preserves the lender's position as of the filing date and avoids ambiguity about pre-petition remedies.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Fees, Costs, and Expenses","Allocates responsibility for legal fees, forbearance fees, and out-of-pocket expenses incurred by the lender in connection with negotiating and documenting the agreement.","Borrower agrees to reimburse Lender for all reasonable attorneys' fees, costs, and expenses incurred in connection with the preparation, negotiation, and execution of this Agreement, not to exceed $[AMOUNT], payable on or before [DATE].","Capping fees without including a carve-out for enforcement costs if the borrower defaults under the forbearance itself. A borrower who triggers reinstatement should bear full enforcement costs, not just the capped negotiation fees.",{"name":340,"plain_english":341,"sample_language":342,"common_mistake":343},"Governing Law and Entire Agreement","Designates which jurisdiction's law governs the agreement, confirms this document supersedes any prior oral or written understandings about the forbearance, and includes standard boilerplate integration language.","This Agreement shall be governed by and construed in accordance with the laws of [STATE/JURISDICTION], without regard to its conflicts-of-law principles. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, and understandings relating thereto.","Choosing a governing law that differs from the original loan agreement without explicitly noting the change. Conflicting governing-law provisions between the loan agreement and the forbearance create unnecessary litigation risk.",[345,350,355,360,365,370,375,380],{"step":346,"title":347,"description":348,"tip":349},1,"Identify both parties and the underlying loan","Enter the lender's and borrower's full legal entity names, states of formation, and the exact title and date of the original loan agreement being addressed. Include any guarantors who will be bound.","Cross-check the entity names against the original loan documents — a mismatch between the forbearance and the loan agreement can create an enforceability gap.",{"step":351,"title":352,"description":353,"tip":354},2,"Document the specific default being addressed","Identify each Event of Default by the exact contract section it triggers, the date it occurred, and the amount or obligation involved. Do not use catch-all language like 'all existing defaults.'","Listing defaults specifically protects both parties: the lender retains rights against any unlisted default; the borrower knows exactly what relief covers.",{"step":356,"title":357,"description":358,"tip":359},3,"Confirm the outstanding balance figures","State the principal balance, accrued interest, and any fees or charges as of a specific date. Have the lender prepare a payoff or balance statement and attach it as an exhibit.","Both parties should reconcile their internal records before signing — an acknowledged balance that later proves incorrect is costly to correct and may void the acknowledgment.",{"step":361,"title":362,"description":363,"tip":364},4,"Set the forbearance period with a firm end date","Enter specific calendar start and end dates rather than relative references like '90 days from execution.' Confirm the duration is realistic for the borrower's cure timeline while limiting lender exposure.","A 60–90 day initial forbearance period is typical for commercial loans. Build in a written-extension option rather than an automatic rollover.",{"step":366,"title":367,"description":368,"tip":369},5,"Define borrower milestones and interim obligations","List every payment, report, or action the borrower must complete during the forbearance period, with specific dates and dollar amounts for each.","Attach milestones as a schedule rather than embedding them in the body — this makes amendments cleaner if the timeline needs to be adjusted.",{"step":371,"title":372,"description":373,"tip":374},6,"Draft the termination triggers carefully","List every event that immediately ends the forbearance and restores lender remedies, including new defaults, misrepresentation, and any bankruptcy filing.","Include a 'material adverse change' trigger for commercial loans — a sudden deterioration in the borrower's financial condition should end forbearance even if scheduled milestones have been met.",{"step":376,"title":377,"description":378,"tip":379},7,"Address fees and cost reimbursement","State the forbearance fee amount and due date, and include a provision requiring the borrower to reimburse the lender's legal fees up to a specified cap for the negotiation and drafting.","A forbearance fee of 0.5–1.0% of the outstanding principal is a common market range for commercial real estate and business loans.",{"step":381,"title":382,"description":383,"tip":384},8,"Execute before the lender takes any enforcement action","Both parties — and any guarantors — must sign the agreement before the lender issues a formal notice of acceleration, files a foreclosure, or commences litigation. Post-action forbearance agreements face higher litigation scrutiny.","Use a contemporaneous resolutions or authorizations from each entity confirming the signatories are authorized — this is particularly important for LLC and corporate borrowers.",[386,390,394,398,402,406],{"mistake":387,"why_it_matters":388,"fix":389},"Using vague default descriptions","A forbearance that references 'existing defaults' without listing them specifically leaves open whether the agreement covers every breach the lender knows about — any unlisted default can be used to terminate forbearance immediately.","List each default by the contract section it triggers, the date it occurred, and the specific obligation breached. Attach a default notice or balance statement as an exhibit for reference.",{"mistake":391,"why_it_matters":392,"fix":393},"Omitting borrower acknowledgment of indebtedness","Without an explicit acknowledgment, a borrower may later challenge the amount owed or the existence of the default, forcing the lender to litigate facts that should have been admitted in the forbearance itself.","Include a stand-alone acknowledgment clause requiring the borrower to confirm the outstanding balance, accrued interest, and default status as of a specific date — and have the borrower's counsel sign off on the figures.",{"mistake":395,"why_it_matters":396,"fix":397},"No reinstatement trigger for new defaults","A forbearance agreement that does not automatically terminate upon a new default effectively grants the borrower a waiver for future breaches, stripping the lender of its leverage to keep the borrower on track.","Draft the termination section to include any new Event of Default under the original loan documents as an immediate, automatic termination event — not one subject to cure.",{"mistake":399,"why_it_matters":400,"fix":401},"Failing to bind guarantors separately","If guarantors are not parties to the forbearance agreement, they may argue the lender's agreement to forbear materially altered the underlying obligation and discharged their guarantee.","Have all guarantors execute the forbearance agreement as parties, with an explicit clause confirming their guarantees remain in full force and are not affected by the forbearance.",{"mistake":403,"why_it_matters":404,"fix":405},"Setting milestones without any cure window","A missed milestone by even one day triggers reinstatement of all remedies, which can force a borrower into bankruptcy over a trivial delay and expose the lender to preference or bad-faith claims in the resulting proceeding.","Include a 5-business-day written-notice cure period for milestone payment failures only — not for new defaults or misrepresentations, which should remain immediate termination events.",{"mistake":407,"why_it_matters":408,"fix":409},"Choosing a governing law inconsistent with the original loan","Conflicting governing-law provisions between the loan agreement and the forbearance create ambiguity courts must resolve, adding litigation cost and unpredictability to an already distressed situation.","Use the same governing law as the original loan agreement, or include an explicit clause noting the intentional change and confirming which document's choice-of-law controls in the event of conflict.",[411,414,417,420,423,426,429,432,435],{"question":412,"answer":413},"What is a forbearance agreement?","A forbearance agreement is a binding contract between a lender and a borrower in which the lender agrees to temporarily refrain from enforcing its legal remedies — such as accelerating the loan, initiating foreclosure, or filing suit — while the borrower works to cure a default or restructure the debt. It does not eliminate the debt or the default; it suspends enforcement for a defined period in exchange for specific borrower commitments. Both commercial and residential lenders use forbearance agreements to avoid costly litigation when a borrower has a credible path to cure.\n",{"question":415,"answer":416},"What is the difference between a forbearance agreement and a loan modification?","A forbearance agreement is temporary — it suspends enforcement for a defined period without permanently changing the loan terms. A loan modification permanently alters one or more terms of the original loan, such as reducing the interest rate, extending the maturity date, or capitalizing missed payments into the principal balance. Forbearance is typically used as a bridge while the parties negotiate a longer-term solution, which may ultimately be a formal modification.\n",{"question":418,"answer":419},"Does a forbearance agreement affect the borrower's credit?","It can, depending on how the lender reports the arrangement to credit bureaus. In many cases, the underlying missed payments have already been reported as delinquent before the forbearance is executed. The forbearance itself may be reported as a special accommodation or deferred-payment arrangement. Borrowers should request in writing that the lender not report additional derogatory information during the forbearance period and confirm whether existing delinquencies will be updated.\n",{"question":421,"answer":422},"Can a lender still sue during a forbearance period?","Generally no — if the forbearance agreement is properly drafted, the lender's commitment to refrain from enforcement actions includes refraining from filing suit. However, the specific remedies suspended depend entirely on the contract language. A lender may reserve the right to take certain protective actions — such as filing a lis pendens to preserve priority — while suspending foreclosure proceedings. Review the forbearance commitment clause carefully to confirm exactly which actions are restricted.\n",{"question":424,"answer":425},"What happens when the forbearance period ends?","If the borrower has cured the default and met all milestones during the forbearance period, the loan typically returns to its original terms and the lender's right to enforce the cured default is extinguished. If the borrower has not cured the default, all lender remedies are reinstated immediately — the lender can accelerate the loan, foreclose, or sue without providing any additional notice beyond what the original loan documents require. Some agreements include a pre-negotiated workout path if the cure is not completed.\n",{"question":427,"answer":428},"Is a forbearance agreement the same as a standstill agreement?","The terms are often used interchangeably in commercial lending, but there is a technical distinction in some contexts. A standstill agreement is broader — it can refer to any agreement by a creditor to take no action for a period, including in acquisition finance and competitive bid situations. A forbearance agreement is more specifically used when a default has already occurred. In practice, both documents serve the same function and contain substantially similar provisions.\n",{"question":430,"answer":431},"Do guarantors need to sign a forbearance agreement?","Yes — guarantors should always be parties to the forbearance agreement. Under the common-law principle of suretyship, a material change to the underlying obligation without the guarantor's consent can discharge the guarantee entirely. Since a forbearance alters the enforcement timeline of the loan, it constitutes a material change. Having guarantors co-execute the agreement and confirm their guarantees remain in full force eliminates this risk.\n",{"question":433,"answer":434},"How long does a forbearance period typically last?","Commercial forbearance periods most commonly run 60 to 180 days, with 60 to 90 days being the typical initial term for business loans and real estate mortgages. The period reflects the time realistically needed to cure the default, close a refinancing, or negotiate a permanent modification. Residential mortgage forbearance periods under government programs (such as CARES Act arrangements) ran up to 18 months, but private commercial forbearance is typically much shorter.\n",{"question":436,"answer":437},"Can a forbearance agreement be extended?","Yes, most commercial forbearance agreements include an extension provision allowing the parties to extend the forbearance period by written amendment, subject to continued compliance with milestones and payment of an additional fee. Extensions require fresh consideration and should be documented in a signed amendment rather than an email exchange. Automatic rollovers without a formal amendment create ambiguity about the new termination date and the conditions applicable to the extended period.\n",[439,443,447,451,455,459],{"industry":440,"icon_asset_id":441,"specifics":442},"Commercial Real Estate","industry-real-estate","Used when a property owner misses mortgage payments due to vacancy or rent shortfalls, with milestones tied to leasing activity, refinancing timelines, or asset sale proceeds.",{"industry":444,"icon_asset_id":445,"specifics":446},"Banking and Financial Services","industry-fintech","Banks use standardized forbearance agreements to manage classified loan portfolios, with specific covenant-relief provisions and reporting requirements that align with bank regulatory guidance.",{"industry":448,"icon_asset_id":449,"specifics":450},"Private Equity and Credit","industry-private-equity","Private credit funds grant forbearance to portfolio companies experiencing EBITDA covenant breaches, typically conditioning relief on management reporting, advisor engagement, and no-dividend restrictions.",{"industry":452,"icon_asset_id":453,"specifics":454},"Healthcare","industry-healthtech","Healthcare providers facing reimbursement delays use forbearance agreements with equipment lenders and real estate creditors, with milestones tied to Medicare/Medicaid payment cycles.",{"industry":456,"icon_asset_id":457,"specifics":458},"Retail and Hospitality","industry-retail","Operators with seasonal cash flows use forbearance to defer obligations during low-revenue periods, with cure milestones tied to peak-season revenue targets or lease renegotiation outcomes.",{"industry":460,"icon_asset_id":461,"specifics":462},"Manufacturing","industry-manufacturing","Manufacturers with supply-chain disruptions or inventory financing defaults use forbearance while restructuring working capital facilities, with lender oversight of receivables and inventory reporting.",[464,467,470,473],{"vs":242,"vs_template_id":465,"summary":466},"loan-modification-agreement-D13042","A loan modification permanently changes one or more terms of the original loan — interest rate, maturity, or principal balance — and the modified terms survive indefinitely. A forbearance agreement is temporary, suspending enforcement for a defined period without altering the underlying loan terms. Use forbearance when the borrower needs short-term relief while pursuing a longer-term solution; use a modification when the parties have agreed to permanent structural changes.",{"vs":246,"vs_template_id":468,"summary":469},"debt-settlement-agreement-D12967","A debt settlement agreement resolves a debt by having the lender accept less than the full amount owed in exchange for a lump-sum payment. A forbearance agreement does not reduce the debt — it preserves the full obligation while suspending enforcement temporarily. Settlement is used when the borrower cannot repay in full and the lender prefers a discounted recovery over litigation; forbearance is used when the borrower has a credible path to full repayment.",{"vs":104,"vs_template_id":471,"summary":472},"payment-plan-agreement-D13154","A payment plan agreement restructures how a debt is repaid — typically through installments over time — without addressing an existing default or suspending enforcement. A forbearance agreement specifically responds to an existing default by halting enforcement while the borrower attempts to cure. For consumer or trade debts with no formal default, a payment plan is sufficient; for loan defaults with enforcement risk, a forbearance agreement is required.",{"vs":474,"vs_template_id":475,"summary":476},"Default Notice","D{DEFAULT_NOTICE_ID}","A default notice is a unilateral document sent by the lender notifying the borrower that a default has occurred and demanding cure or payment by a deadline. It is not bilateral and creates no obligation on the lender. A forbearance agreement is a negotiated bilateral contract that supersedes or supplements a default notice by establishing the parties' mutual commitments during the cure period. A default notice often precedes and triggers the forbearance negotiation.",{"use_template":478,"template_plus_review":482,"custom_drafted":486},{"best_for":479,"cost":480,"time":481},"Simple commercial loan forbearances between two sophisticated parties with a single identified default and no guarantors","Free","1–2 hours",{"best_for":483,"cost":484,"time":485},"Real estate mortgage forbearances, loans with multiple defaults, or any arrangement involving guarantors or cross-collateralized obligations","$500–$1,500","2–5 days",{"best_for":487,"cost":488,"time":489},"Large commercial credit facilities, multi-lender syndicated loans, distressed company workouts, or any forbearance preceding a restructuring or bankruptcy","$3,000–$15,000+","1–4 weeks",[491,496,501,506],{"code":492,"name":493,"flag_asset_id":494,"note":495},"us","United States","flag-us","Forbearance agreements are governed by state contract and UCC law, with no single federal standard for commercial loans. Real property forbearances must comply with state foreclosure timelines — non-judicial foreclosure states (e.g., California, Texas) allow faster enforcement reinstatement than judicial states (e.g., New York, Florida). The CARES Act created specific residential mortgage forbearance frameworks during COVID-19; commercial forbearance remains entirely contract-based. Borrowers should confirm whether state lender-liability statutes impose good-faith obligations on lenders entering forbearance negotiations.",{"code":497,"name":498,"flag_asset_id":499,"note":500},"ca","Canada","flag-ca","Commercial forbearance in Canada is governed by the common law of contract in all provinces except Quebec, where the Civil Code applies. Ontario and British Columbia lenders must comply with provincial Mortgages Acts and Real Property Acts for real estate-secured loans, which impose cure-period notice requirements before power-of-sale proceedings. The Bankruptcy and Insolvency Act and Companies' Creditors Arrangement Act provide borrower-protection frameworks that interact with forbearance terms if insolvency proceedings commence during the standstill period.",{"code":502,"name":503,"flag_asset_id":504,"note":505},"uk","United Kingdom","flag-uk","Forbearance agreements in the UK are enforceable as binding contracts provided consideration is present — typically the lender's agreement to delay enforcement in exchange for the borrower's acknowledgment of debt and payment commitment. FCA-regulated lenders must comply with treating-customers-fairly obligations, and forbearance of consumer mortgages is subject to FCA mortgage conduct rules. The Law of Property Act 1925 governs mortgage enforcement timelines for real property. Insolvency Act 1986 provisions on wrongful trading and preferences must be considered when granting forbearance to companies approaching insolvency.",{"code":507,"name":508,"flag_asset_id":509,"note":510},"eu","European Union","flag-eu","The EU Banking Recovery and Resolution Directive (BRRD) and EBA Guidelines on forbearance and non-performing exposures require regulated banks to classify and report forbearance exposures under standardized criteria — this creates documentation and reporting obligations that go beyond the bilateral contract. Member states have varying contractual law frameworks: French law requires cause and good faith in creditor conduct; German law imposes extensive pre-enforcement notification requirements. GDPR applies to any personal data processed in connection with the borrower's financial situation during the forbearance period.",[243,243,249,512,513,514,515,516,517,518,519,520],"promissory-note-D434","loan-agreement-D12711","personal-guarantee-D405","security-agreement-D915","demand-letter-D13262","settlement-agreement-D916","non-disclosure-agreement-nda-D12692","cease-and-desist-letter-D12916","business-credit-application-D247",{"emit_how_to":201,"emit_defined_term":201},{"primary_folder":113,"secondary_folder":523,"document_type":524,"industry":525,"business_stage":526,"tags":527,"confidence":533},"loans-and-promissory-notes","agreement","general","all-stages",[528,529,530,531,532],"legal","forbearance","loan-agreement","lender-borrower","default-management",0.95,"\u003Ch2>What is a Forbearance Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Forbearance Agreement\u003C/strong> is a binding legal contract between a lender and a borrower in which the lender voluntarily agrees to refrain from exercising its enforcement remedies — including loan acceleration, foreclosure, or litigation — for a defined period while the borrower works to cure an existing default or negotiate a longer-term restructuring. The agreement does not forgive the debt or eliminate the default; it creates a structured standstill with specific conditions the borrower must meet to keep the lender's enforcement rights suspended. Both parties receive something of value: the borrower gains time and protection from immediate legal action, while the lender secures a formal acknowledgment of the debt, documented milestones, and a contractual basis to reinstate full remedies if the borrower fails to perform.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating on an informal understanding with a lender during a default is one of the most common and costly mistakes a distressed borrower can make. Without a signed forbearance agreement, the lender retains the unrestricted right to accelerate the loan, file for foreclosure, or obtain a judgment at any time — regardless of any verbal assurances. For lenders, proceeding without a written standstill risks waiver arguments: a court may find that continued inaction on a known default constituted an implied waiver of enforcement rights, particularly if the borrower can show a course of dealing suggesting the lender accepted non-payment. A properly drafted forbearance agreement eliminates these ambiguities on both sides, creates enforceable milestones, binds guarantors, and preserves every legal right the lender needs if the workout fails — all while giving a genuinely distressed borrower the runway to execute a cure. This template gives you the structural framework to document that arrangement correctly from the first conversation.\u003C/p>\n",1778696278841]