Legal Contracts Software Generator - Legal Contract Agreement Template for Forbearance

# Forbearance Agreement **This Forbearance Agreement (“Agreement”) is made and entered into as of [Date], by and between:** **Borrower:** [Borrower’s Full Name] [Borrower’s Address] [City, State, Zip Code] [Email Address] [Phone Number] **Lender:** [Lender’s Full Name] [Lender’s Address] [City, State, Zip Code] [Email Address] [Phone Number] **RECITALS** WHEREAS, Borrower has executed a loan agreement (the “Loan Agreement”) dated [Original Loan Date], with the Lender; WHEREAS, Borrower has requested a forbearance of the repayment obligations under the Loan Agreement; WHEREAS, the Lender has agreed to forbear from exercising its rights under the Loan Agreement according to the terms specified herein; **NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:** ### 1. **Forbearance Period** The Lender agrees to forbear from exercising its rights and remedies under the Loan Agreement from [Start Date] to [End Date] (the “Forbearance Period”). ### 2. **Payment Terms** During the Forbearance Period, the Borrower shall make payments as follows: - Payment Amount: $[Amount] - Payment Due Date: [Monthly/Quarterly] - Payment Method: [Specify method of payment] ### 3. **Interest Rate** The interest rate during the Forbearance Period shall remain at [Interest Rate]% per annum. ### 4. **Acknowledgement of Debt** The Borrower acknowledges that the total outstanding balance on the Loan is [$Total Amount] as of the date of this Agreement. ### 5. **Condition for Forbearance** The Borrower agrees to adhere to the following conditions for the forbearance to be valid: 1. Timely payments as outlined in Section 2 above. 2. Notifying the Lender immediately of any financial changes that may affect the Borrower's ability to fulfill the obligations. 3. Compliance with all other terms and conditions of the Loan Agreement that are not expressly suspended by this Agreement. ### 6. **Default** If the Borrower fails to make any payment on time or breaches any other term of this Agreement, the Lender may terminate this Agreement, and the entire unpaid balance of the loan shall become immediately due and payable at the Lender's option. ### 7. **No Waiver** The failure of the Lender to exercise any right or remedy under this Agreement or the Loan Agreement shall not be construed as a waiver of such right or remedy. ### 8. **Governing Law** This Agreement shall be governed by and construed in accordance with the laws of the State of [State]. ### 9. **Entire Agreement** This Agreement constitutes the entire understanding between the parties and supersedes all prior negotiations or agreements, whether written or oral, relating to its subject matter. ### 10. **Amendments** No amendment or modification of this Agreement shall be valid unless made in writing and signed by both parties. ### IN WITNESS WHEREOF, the parties have executed this Forbearance Agreement as of the date first above written. --- **Borrower:** _________________________ Signature: Date: --- **Lender:** _________________________ Signature: Date: --- **Witness:** _________________________ Signature: Date: --- **Note:** It is advisable to consult with a legal professional before signing any legal agreement to ensure compliance with applicable laws and regulations.