Collateral Surrender Agreement

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					A Collateral Surrender Agreement is an agreement between a secured lender (Secured
Party) and a debtor. This agreement is used to enforce a security agreement when the
debtor is in default of their obligations to the Secured Party. Using this agreement, a
loan secured against property is cancelled and the property is surrendered to the lender.
This form should be used by secured lenders for defaulted loans. This document can
be customized to fit the needs of the drafting parties.
              COLLATERAL SURRENDER AGREEMENT
       THIS COLLATERAL SURRENDER AGREEMENT (the “Collateral Agreement”),
entered into this _____ day of _____________ [MONTH], _____ [YEAR] (the “Effective
Date”), by and between _________________ (the “Secured Party”) and _______________ (the
“Debtor”).

      WHEREAS the Secured Party and the Debtor entered into a ____________________
agreement (the “Agreement”) dated the _____ day of _____________ [MONTH], _____
[YEAR];

        AND WHEREAS as of the Effective Date, the Debtor is indebted to the Secured Party in
the principal amount of ____________ [AMOUNT IN WORDS] dollars ($_______) [AMOUNT
IN NUMERALS] (the “Indebtedness”) Dollars, plus any and all accrued interest up to and
including the Effective Date;

       AND WHEREAS the Indebtedness owing to the Secured Party by the Debtor is now due
and delinquent by the Debtor, and the Secured Party has provided notice to the Debtor that
foreclosure on the Indebtedness is imminent;

       AND WHEREAS the Indebtedness owing by the Debtor to the Secured Party is secured
by way of a security agreement (the “Security Agreement”) dated the _____ day of
_____________ [MONTH], _____ [YEAR], which secures and encumbers all of the personal
property and assets of the Debtor (the “Collateral”);

       AND WHEREAS the Debtor has given notice to the Secured Party that it is desirous to
have the Secured Party foreclose on the Collateral of the Debtor and the Secured Party has
agreed to exercise all of its right to do so as payment of the Indebtedness owing to the Secured
Party by the Debtor.

       NOW THEREFORE, in consideration of the mutual covenants and agreement set forth in
this Collateral Agreement, and the forbearance by the Secured Party to exercise its rights to
foreclose on the Collateral of the Debtor for the payment of the Indebtedness due and owing to
the Secured Party, the Secured Party and the Debtor hereby acknowledge and agree as follows:

1.00   DEBTOR ACKNOWLEDGMENT OF DEFAULT

1.01 The Debtor hereby acknowledges that it is in default of payments to the Secured Party for
the Indebtedness in the principal amount of ____________ [AMOUNT IN WORDS] dollars
($_______) [AMOUNT IN NUMERALS] together with all accrued interest up to and including
the Effective Date, pursuant to the terms and the conditions of the Agreement between the
Secured Party and the Debtor.
1.02 The Debtor hereby acknowledges and agrees with the Secured Party that the Debtor
granted to the Secured Party a security interest in the Collateral of the Debtor and that the
Secured Party has all right to enforce and foreclose upon the Collateral of the Debtor pursuant to
the terms and conditions of the Agreement entered into between the Secured Party and the
Debtor.

2.00     FORECLOSURE BY SECURED PARTY

2.01 Pursuant to the terms and conditions of this Collateral Agreement and the terms and
conditions of the Agreement entered into between the Secured Party and the Debtor, the Secured
Party hereby acknowledges and agrees that it will exercise its rights to enforce its security
against the Collateral of the Debtor for payment of the Indebtedness owing to it by the Debtor.

3.00     REPRESENTATIONS AND WARRANTIES OF DEBTOR

3.01     The Debtor hereby represents and warrants to the Secured Party as follows:

         (i)      that at the Effective Date all documents or instruments which secure the
                  Indebtedness due and owing to the Secured Party has been executed by the Debtor
                  and delivered to the Secured Party or its attorneys;

         (ii)     that the amount of the Indebtedness due and owing to the Secured Party at the
                  Effective Date is ____________ [AMOUNT IN WORDS] dollars ($_______)
                  [AMOUNT IN NUMERALS] together with all accrued interest up to and
                  including the Effective Date;

         (iii)    that at the Effective Date, the Debtor will surrender the Collateral to the Secured
                  Party as payment of the Indebtedness due and owing to the Secured Party;

         (iv)     that at the Effective Date there are no liens, charges or claims which would
                  otherwise encumber the Collateral of the Debtor;

         (v)      that at the Effective Date the Collateral of the Debtor is in a good state of repair
                  and condition; and

         (vi)     that the Debtor shall not remove any of the Collateral from its principal premises
                  or from such other location where the Collateral may reside.

4.00     MUTUAL RELEASES

4.01 The Secured Party hereby acknowledges and agrees that the timely performance of this
Agreement by the Debtor shall constitute full and final satisfaction of all of the obligations of the
Debtor to the Secured Party.




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4.02 Upon completion of the terms and conditions of this Collateral Agreement, the Secured
Party shall deliver a release to the Debtor releasing the Debtor, its heirs, successors, and assigns
from any and all claims, debts, liabilities, agreements and causes of action with the Secured Party
may have for, upon or by reason of any debts or obligations of the Debtor to the Secured Party.

4.03 Upon completion of the terms and conditions of this Collateral Agreement, the Debtor
shall deliver a release to the Secured Party, releasing the Secured Party, its subsidiaries,
affiliates, officers, directors, shareholders, employees, successors, and assigns from any and all
claims, actions, causes of action, liabilities and demands whatsoever, in law or in equity, the
Debtor may have or will have against the Secured Party, whether known or unknown.

5.00     GENERAL PROVISIONS

5.01 The division of this Collateral Agreement into sections, subsections, paragraphs, and
subparagraphs and the insertion of headings are for the convenience of reference only and shall
not affect the construction or interpretation hereof.

5.02 If the Debtor is constituted by more than one person, their obligations hereunder as the
Debtor are joint and several.

5.03 Each of the parties hereto shall from time to time at the other’s request and expense and
without further consideration, execute and deliver such other instruments of transfer,
conveyance, and assignments and take such further action as to the other may require to more
effectively complete any matter provided for herein.

5.04 This Collateral Agreement constitutes the entire Collateral Agreement between the
Secured Party and the Debtor, except as herein stated and in the instruments and documents to
be executed and delivered pursuant hereto, contains all of the representations and warranties of
the respective parties. There are no oral representations or warranties between the parties of any
kind. This Agreement may not be amended or modified in any respect except by written
instrument signed by both parties.

5.05 The Secured Party and the Debtor agree that all provisions of this Collateral Agreement,
the warranties and representations contained herein, and any and all documents delivered in
connection herewith shall survive the execution and delivery of this Collateral Agreement in
accordance with the terms of this Collateral Agreement or the document delivered, as the case
may be.

5.06 This Agreement shall be interpreted in accordance with the laws of the Province/State of
____________________ and shall be treated in all respects as a _______[???]________
contract.




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5.07 Any notice required or permitted to be given hereunder shall be in writing and shall be
effectively given if (i) delivered personally, (ii) sent by prepaid courier service or mail, or (iii)
sent prepaid by telecopier, telex, or other similar means of electronic communications and
confirmed on the same or following day by prepaid mail, addressed, in the case of notice to the
Secured Party, if addressed to it as follows:

                                                         [SECURED PARTY’S MAILING ADDRESS


                  Fax: (___)

and in the case of notice to the Debtor, if addressed to it as follows:

                                                        [DEBTOR’S            MAILING
ADDRESS
                  Fax: (___)

and in all cases so delivered personally or by courier or so sent by means of electronic
communication, so confirmed. Any notice so given is deemed conclusively to have been given
and received when so personally delivered or sent by telex, telecopier, or other electronic
communication or on the second day following the sending thereof by private courier or mail.
Any party hereto or others mentioned above may change any particulars of its address for notice
by notice to the others in the manner aforesaid.

5.08 This Agreement enures to the benefit of and is binding upon the Secured Party and the
Debtor and their respective successors and assigns.

       IN WITNESS WHEREOF this Collateral Agreement has been executed by the
Secured Party and the Debtor as of the day and year first written above.

(SECURED PARTY)                                                           (DEBTOR)
Per:                                                                      Per:




Name:                                                                     Name:
Title:                                                                    Title:
I have authority to bind the Company.                                     I have authority to bind the Company.




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DOCUMENT INFO
Description: A Collateral Surrender Agreement is an agreement between a secured lender (Secured Party) and a debtor. This agreement is used to enforce a security agreement when the debtor is in default of their obligations to the Secured Party. Using this agreement, a loan secured against property is cancelled and the property is surrendered to the lender. This form should be used by secured lenders for defaulted loans. This document can be customized to fit the needs of the drafting parties.
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