ABC Forbearance Agreement This Forbearance Agreement (Agreement) is made and entered into this 17th day of June, Two Thousand and Two, by and between Company Name, a Company Description , with its address at Company Address, and Borrowing Company/Individual Name, a Hawaii Corporation (Borrower) whose address is _____________________ .
Loan No. ________________: Borrower borrowed $ ____________ from Company Name as set forth in the Loan Documents. The loan is evidenced by a Note dated ________________ . Acknowledgments: Borrower acknowledges his default under the Loan Documents. Company Name agrees to forbear from further collection efforts, including the initiation of legal action, as long as borrower fully and timely observes all terms, covenants and conditions of the Loan Documents, as modified by this Agreement on the terms, covenants and conditions set forth below. Agreement on Unpaid Balance: In consideration of the foregoing, and the terms, conditions and covenants set forth below, Company and Borrower agree that the following recitals are agreed to and are true and correct, and further agree as follows: As of ____________, Borrower owes Company Name pursuant to the Loan Documents, the total of the following: Principal $ ________________ Interest $ ________________ Late Charges $ ________________ Other $ ________________ Total $ ________________
Payment Provisions: Borrower shall pay Company Name monthly commencing _____________ and continuing on the _______ of each month thereafter the sum of $ __________ until ____________ , when all amounts owed to Company Name will be due and payable in full. Payments may be applied first to advances, costs and expenses incurred by Company Name, then to interest, and the balance, if any, to principal. Review at the End of the Forbearance Period: If borrower timely makes all monthly payments during the forbearance period, and is otherwise in full compliance with all of the
terms, covenants and conditions of the Loan Documents and this Agreement, Company Name, in its sole discretion, will review Borrower’s financial condition to determine if it will grant an additional extension. If Company Name does grant an extension, Company Name will in its sole discretion determine the terms, covenants and conditions on which such extension will be granted. Financial Information to be Provided to Company Name: Borrower shall provide to Company Name an annual personal financial statement on or before January 20th of each calendar year, and shall also provide Company Name with a copy of his Federal Income Tax Returns within ten days of filing the same. Borrower also agrees to provide Company Name, upon request, all other financial information reasonably requested by Company Name. Interest: Interest shall accrue at the default rate of 24% as described in the Loan Documents. Loan Documents: Except as modified by this Agreement, Borrower shall fully and timely pay all amounts when due, and observe and comply with all terms, covenants and conditions set forth in the Loan Documents required of Borrower. Confirmation of Loan Documents: Except as modified by this Agreement, Borrower hereby ratifies and confirms, that with respect to Borrower, all of the Loan Documents continue in full force and effect and are hereby republished. Borrower also ratifies and confirms that security interests in favor of Company Name, if any, continue in full force and effect. Company Name expressly reserves all of its rights and privileges under the law and Loan Documents. Additional Documents: At the request of Company Name, Borrower shall promptly execute and deliver all documents reasonably requested to implement the intent of this Agreement. Additional Collateral: In consideration for this forbearance, Borrower agrees to pledge additional security in the form of: ______________________________________________________________ . Default: In the event Borrower breaches any provision of this Agreement, Company Name may immediately exercise any and all remedies provided by law and by this Agreement and the Loan Documents. A default will result in the Company’s exercising any of its available remedies without further notice or demand, including the filing of legal action and any other post-judgment collection remedies. Release and Waiver of Borrower: Borrower releases and discharges Company Name, and its successors and assigns, agents, employees, officers, directors and stockholders,
and waives all claims, actions, causes of action, suits in law or equity, liabilities, damages, losses and expenses which borrower had, have, or claims to have, whether known or unknown, and of any kind or nature, in law or in equity, growing out of, connected with or in any manner involving, concerning or related to subject loan and/or the Loan Documents. Section Headings/Rules of Construction: Section headings are inserted only as a matter of convenience and in no way define, limit or prescribe the scope or intent of this Agreement. Singular words shall connote the plural number as well, and vice-a-versa, and the masculine shall include the feminine and neuter. Each of the parties acknowledge that it has or has had the opportunity to be represented by legal counsel in connection with this transaction. IN WITNESS WHEREOF, the parties to this Agreement have set their hands as of the day and year first above written. Company Name By:_____________________________________ Its: Company Name _____________________________________ "Borrower" _____________________________________ "Borrower"
STATE OF HAWAII ) COUNTY OF HONOLULU ) ) On this
) ) SS.
day of , 2002, before me personally appeared _________________________ to me known to be the person(s) described in and who executed the foregoing document and acknowledged to me that he executed the same as his free act and deed.
__________________________________________________ Notary Public, State of Hawaii My Commission Expires on:________________