This is an agreement that is entered into between a trustee and the debtor of a failing business for the transfer of business assets. The debtor agrees that they will grant, assign, or transfer to the trustee all business assets for the purpose of liquidation and repayment of creditors. This agreement can be used by small businesses or other entities that want to transfer their businesses assets to a trustee to satisfy creditors.
This is an agreement that is entered into between a trustee and the debtor of a failing business for the transfer of business assets. The debtor agrees that they will grant, assign, or transfer to the trustee all business assets for the purpose of liquidation and repayment of creditors. This agreement can be used by small businesses or other entities that want to transfer their businesses assets to a trustee to satisfy creditors. Trusteeship Agreement for Failing Business TRUSTEESHIP AGREEMENT FOR FAILING BUSINESS THIS TRUSTEESHIP AGREEMENT (the “Agreement”), is made this ____ day of ______________, 2_____, by and between ___________________, a company duly incorporated under the laws of the State of ________________ (the “Debtor”) and ___________________ (the “Trustee”). WHEREAS, the Debtor is indebted to numerous creditors and the Debtor is unable to pay such indebtedness due and owing to its creditors due to the financial condition of the Debtor; NOW THEREFORE, the in consideration of the premises and mutual covenants contained herein, the Debtor hereby grants, assigns, transfers and sets over unto the Trustee, all of the assets and undertaking of the Debtor to have and to hold in trust and to receive in trust and to carry on the business of the Debtor for such period of time as the Trustee in its/his/her sole discretion may deem for the best interests of the Debtor’s creditor, and to sell and liquidate the aforementioned assets and undertaking of the Debtor, and to convert the same into money, on such terms and at such prices as the Trustee sees fit and to collect all debts hereby assigned by the Creditor, as may be collectible, and out of the proceeds of such sales and collections. 1. The Trustee shall be entitled to receive any and all costs incurred in respect to the execution of this Agreement and carrying out the actions contemplated herein and to pay and discharge in full, all debts and liabilities of the Debtor and to pay any residue if any of the proceeds to the Debtor’s creditors with all interest which has accrued thereon. 2. In the event the residue is not in an amount which is sufficient to pay the debts and liabilities with interest that has accrued thereon of the Debtor in full, the Trustee shall apply the residue to the Debtor’s debts and liabilities rateably and in proportion. Any lesser amount which is paid by the Trustee to a creditor of the Debtor shall be accepted by such creditor as “payment received in full”. 3. In the event the Trustee pays all of the debts and liabilities of the Debtor including any interest accrued thereon and there remains a surplus in the residue, the Trustee shall pay to the Debtor such residue. 4. The Debtor hereby nominates, constitutes and appoints the Trustee as its lawful attorney and the Trustee shall have full power and authority to do all acts and things which may be necessary in the premises to the full execution of the trust hereby created, and to ask and demand, recover and receive of and from all and every person or persons, all property, debts, and demands due, owing and belonging to the Debtor. 5. The Trustee shall have the power and right to determine the validity of all claims made against the Debtor and shall have the power and right to arbitrate such matters. 6. In the event that the Trustee dies, resigns or becomes incapacitated, the Debtor shall appoint a succeeding Trustee and such succeeding Trustee shall have and shall exercise all the power and authority under this Agreement and trust as was previously possessed by the Trustee. 7. The Trustee shall keep books of account showing the receipts and disbursements, which shall be open for reasonable inspection during normal business hours. 8. Nothing herein contained, in so far as a specific delegation of power to the Trustee is concerned, shall in any wise limit his or her general power as Trustee. 9. The creditors executing this Agreement each agree that they shall not institute any proceeding at law or in equity or in bankruptcy against the Debtor, and that it will not become a party to any proceeding in bankruptcy against the Debtor. 10. The Trustee does hereby accept the trust created by this Agreement and covenants and agree to fully perform the terms and conditions and obligations contained herein without compensation from the Debtor. 11. The trust created herein shall continue and be in full force and effective until ____________________, at which time all property and assets remaining in the hands and possession of the Trustee shall be disposed of at public or private sale. 12. Any creditor of the Debtor may become a party to this Agreement by signing the same or a copy, and all copies hereof shall be deemed one and the same instrument. 13. The Debtor hereby acknowledges and agrees to execute and deliver any and all additional documents or instruments which may be necessary or desirable to carry out the intent of this Agreement. 14. This Agreement shall be governed under the laws of the State of _______________ applicable therein and as amended from time to time. IN WITHESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. Witness: Trustee (DEBTOR) Per: Name: Title: I have authority to bind the Company. Witness: Creditor Witness: Creditor
Pages to are hidden for
"Trusteeship Agreement for Failing Business"Please download to view full document