Turn your law firm AI-native
ApplyThis Forbearance Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:
Lender/Creditor: [Lender Name], with an address at [Address] (“Lender”).
Borrower/Debtor: [Borrower Name], with an address at [Address] (“Borrower”).
Lender and Borrower may be referred to individually as a “Party” and collectively as the “Parties.”
1.1 Underlying Documents. This Agreement relates to:
[Loan/Note/Agreement name] dated [Date] (the “Loan Documents”).
1.2 Obligation. Borrower owes Lender amounts under the Loan Documents, including principal, interest, and fees (the “Obligation”).
1.3 Defaults. Events of default include: [Missed payment(s), covenant breach, etc.].
1.4 Acknowledgment. Borrower acknowledges the Obligation is valid and enforceable, subject to applicable law.
2.1 Forbearance Period. Lender agrees to forbear from enforcing rights arising from the Defaults from [Start Date] through [End Date] (the “Forbearance Period”), provided Borrower meets the conditions of this Agreement.
2.2 No Waiver. Forbearance is temporary and is not a waiver of Lender’s rights, except as expressly stated.
2.3 Reservation of Rights. Lender reserves all rights and remedies under the Loan Documents and law.
3.1 Payments During Forbearance. Borrower will make the following payments during the Forbearance Period:
Payment schedule: [Dates and amounts]
Method: [ACH/wire/check]
3.2 Cure Requirements. Borrower will cure the Defaults by: [Paying arrears, providing documents, meeting covenants] by [Date].
3.3 Application of Payments. Payments will be applied to: ☐ Fees/costs first ☐ Interest ☐ Principal ☐ As stated in Loan Documents.
3.4 Additional Fees (Optional). Borrower will pay a forbearance fee of $[__] by [Date].
Payment schedule: [Dates and amounts]
Method: [ACH/wire/check]
3.2 Cure Requirements. Borrower will cure the Defaults by: [Paying arrears, providing documents, meeting covenants] by [Date].
3.3 Application of Payments. Payments will be applied to: ☐ Fees/costs first ☐ Interest ☐ Principal ☐ As stated in Loan Documents.
3.4 Additional Fees (Optional). Borrower will pay a forbearance fee of $[__] by [Date].
4.1 Financial Reporting. Borrower will provide: [Weekly cash report/monthly statements] by [Deadlines].
4.2 Operational Covenants. Borrower agrees to: [Maintain insurance, preserve collateral, limit additional debt].
4.3 Negative Covenants. Borrower will not: [Sell assets, make distributions] without Lender’s written consent.
5.1 Conditions. Lender’s forbearance is conditioned on:
No additional defaults during the Forbearance Period
Borrower’s timely payments under Section 3
Borrower maintaining required insurance (if applicable)
Accuracy of Borrower representations
5.2 Failure of Conditions. If conditions fail, Lender may end forbearance and enforce rights immediately, subject to law.
No additional defaults during the Forbearance Period
Borrower’s timely payments under Section 3
Borrower maintaining required insurance (if applicable)
Accuracy of Borrower representations
5.2 Failure of Conditions. If conditions fail, Lender may end forbearance and enforce rights immediately, subject to law.
6.1 Borrower Release. To the extent permitted by law, Borrower releases Lender from claims arising on or before the Effective Date relating to the Loan Documents, except claims that cannot be waived by law.
6.2 No Admission. This Agreement is a compromise and is not an admission of wrongdoing by Lender.
7.1 Authority. Borrower represents it has authority to enter into this Agreement.
7.2 No Reliance (Optional). Borrower is not relying on statements not in this Agreement.
7.3 Accuracy. Borrower’s information provided to Lender is accurate to the best of Borrower’s knowledge.
8.1 Default Events. Default under this Agreement includes: missed payments, new default under Loan Documents, or breach of this Agreement.
8.2 Remedies. Upon default, Lender may exercise all rights under Loan Documents and law, including acceleration, foreclosure (if applicable), or collections.
9.1 Governing Law. This Agreement is governed by the laws of [State/Country].
9.2 Entire Agreement. This Agreement and the Loan Documents are the entire agreement about forbearance.
9.3 Amendments. Amendments must be in writing and signed by both Parties.
9.4 Severability. If any provision is unenforceable, the remainder remains effective.
9.5 Electronic Signatures. Electronic signatures are effective.
By signing below, the Parties agree to this Forbearance Agreement as of the Effective Date.
Lender/Creditor: [Lender Name]
Authorized Signatory: [Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________
Borrower/Debtor: [Borrower Name]
Authorized Signatory: [Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________
Each template already follows legal structure and best practices.
The agreement is automatically filled and adapted to your inputs.
Check the generated document, make edits if needed, and download a ready-to-use agreement.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Frequently asked
A Forbearance Agreement is a contract where a lender (or creditor) agrees not to enforce certain rights after a borrower’s default for a limited period of time. In exchange, the borrower typically agrees to a cure plan, ongoing reporting, and reaffirmation of the debt.
Use it when a borrower has missed payments or breached loan terms, but both sides want to avoid immediate enforcement actions (like acceleration, foreclosure, or collections). It is common in commercial lending, vendor financing, and large past-due balances.
No. It usually does not forgive debt. It temporarily delays enforcement while the borrower follows the cure plan. The agreement often confirms the debt amount and states that rights are only paused, not waived.
It should include: the underlying loan/obligation, the default events, forbearance period, required payments during forbearance, cure requirements, reporting and financial covenants (optional), conditions to forbear, what happens if there is another default, and releases (if used).
Yes. Lenders often require the borrower to acknowledge the debt and defaults and may request a release of claims against the lender. This template includes optional release language that can be adjusted.
AI Lawyer is an AI-powered assistant that helps you create and customize legal and business document templates online. It guides you through key sections, suggests wording, and explains complex concepts in simple language. AI Lawyer does not replace a licensed attorney or provide legal advice, but helps you prepare better documents faster and more confidently.
Loan Modification Agreement Template: Terms and Payments
Amend the terms of an existing loan with a clear and legally valid Loan Modification Agreement, detailing changes to repayment, interest rates, and other key conditions.
Financial Agreements
Credit Application Form Template – Illinois
An Illinois-focused credit application form that leads with compliance disclosures and uses a document intake tracker to keep underwriting packets complete and organized.
Financial Agreements
Home Loan Application Checklist Template
Use our free Home Loan Application Checklist template to gather the documents you need for a mortgage application. Customize borrower types and required items — then download and print instantly.
Financial Agreements
Promissory Note Template: Loan, Interest and Default Terms
Use our free Promissory Note template to formalize loans quickly and clearly. Customize, print, and use instantly.
Financial Agreements
Balloon Note Template: Promissory Note and Final Payment
Use our free Balloon Note template to set smaller periodic payments with a final lump-sum balloon payment for personal, business, or real estate loans.
Financial Agreements
ACH Authorization Form Template – Illinois
An Illinois-ready ACH authorization form built for issue prevention and response, with a return and resolution tracker for failed debits and follow-up actions.
Financial Agreements
Billing Agreement Template: Rates, Fees & Invoice Terms
Use our free Billing Agreement template to set billing cycles, payment methods, authorizations, and dispute terms for services or subscriptions.
Financial Agreements
Power Purchase Agreement Template: Pricing, Term & Delivery
Use our free Power Purchase Agreement template to secure energy supply. Customize, download, and protect your business with clear energy terms.
Financial Agreements
Loan Forgiveness Agreement Template: Debt Release & Tax Rules
Use our free Loan Forgiveness Agreement template to formally document when a lender forgives all or part of a loan, including the forgiven amount, remaining balance, and mutual releases. Customize, download, and print in minutes.
Financial Agreements
Payment Agreement Template: Installments, Due Dates & Late Fees
Use our free Payment Agreement template to clearly outline loan repayment terms. Customize, download, and print your document in minutes.
Financial Agreements
Credit Card Authorization Template – Washington
A Washington-ready credit card authorization template focused on communication, documenting who can request changes and how confirmations are delivered. Built for recurring billing with multiple authorized contacts, clear routing for cancellations, and an evidence index for audit-ready records.
Financial Agreements
Guaranty Agreement Template: Personal Guarantee Document
Use our free Guaranty template to create a binding payment guarantee that protects lenders and secures loans or other financial transactions. Download fast.
Financial Agreements
Intercreditor Agreement Template: Priority and Payments
Use our free Intercreditor Agreement template to clarify lender rights. Customize, download, and protect financial arrangements instantly.
Financial Agreements
Grant Agreement Template: Funding, Deliverables & Reporting
Use our free Grant Agreement template to clearly define funding terms and compliance obligations. Customize and sign to support successful partnerships.
Financial Agreements
ACH Authorization Form Template – Texas
A Texas-ready ACH authorization form built for operational follow-through, with a corrective action log for returns, updates, retries, and issue tracking.
Financial Agreements
Profit Split Agreement Template
Use our free Profit Split Agreement template to define how partners will calculate and distribute profits from a project or business. Customize profit definitions, payout schedules, and dispute rules — then download and print instantly.
Financial Agreements
Vendor ACH Authorization / Vendor Direct Deposit Form Template
Use our free Vendor ACH Authorization / Vendor Direct Deposit Form template to collect vendor payout details and authorize ACH payments. Customize payment frequency, account verification, and change procedures — then download and print instantly.
Financial Agreements
Demand Note Template: Promissory Note Payable on Demand
Use our free Demand Note template to create a flexible loan agreement with repayment on demand—customize, download, and protect lender and borrower.
Financial Agreements
Credit Card Authorization Template – New York
A New York-ready credit card authorization template built for traceable documentation, pairing cardholder consent with invoice allocation and internal routing. Capture charge limits, approval method, references, and attachments for clean reconciliation.
Financial Agreements
Promissory Note Template – Texas
A Texas-oriented promissory note template that starts with security and uses a collateral register for clearer secured lending.
Financial Agreements
Escrow Holdback Agreement Template
Use our free Escrow Holdback Agreement template to hold part of a transaction payment in escrow until agreed conditions are met. Customize the holdback amount, release triggers, and dispute steps—then download and print instantly.
Financial Agreements
Installment Sale and Security Agreement Template: Terms
Use our free Installment Sale and Security Agreement template to set payment terms, secure seller rights, and support compliance with secured transaction laws.
Financial Agreements
Debt Acknowledgement Agreement Template
Use our free Debt Acknowledgement Agreement template to confirm an outstanding debt in writing and set repayment terms. Customize amount, payment plan, and default terms — then download and print instantly.
Financial Agreements
Escrow Agreement Template: Deposit Terms and Release Conditions
Use our free Escrow Agreement template to safeguard transactions. Customize, download, and ensure secure exchanges with confidence.
Financial Agreements