This document is a forbearance of debt agreement.
Forbearance of debt
Forbearance of debt agreements are entered into in circumstances where:
- a borrower has defaulted under a loan agreement; and
- the lender agrees not to exercise its rights of remedy against the borrower for a period of time known as a forbearance period.
A forbearance agreement should at the very least set out:
- the events of default the length of the forbearance period;
- any modifications to the original loan agreement during the forbearance period; and
- certain financial and operational obligations that the borrower needs to uphold during the forbearance period.
- Basic loan agreement
- Guarantee of payment of loan
- General security deed
- Amendment and restatement agreement
- Deed of priority
- Deed of assignment of debt
- Real property mortgage
- Loan agreement checklist
This document has been authored for LexisNexis by Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editors Geoff Geha, Partner, Clayton Utz and Karen Lee, Principal and Consultant, Legal Know-How.