| name | loan-forbearance |
| title | Loan Forbearance Agreement |
| description | Drafts lender-protective U.S. commercial loan forbearance agreements that temporarily suspend remedies while preserving all lender rights, capturing existing defaults, payment deferrals, conditions precedent, and borrower releases. Use when drafting or reviewing a forbearance agreement, loan workout, payment deferral, temporary modification, default standstill, lender-borrower restructuring, or cure-period extension. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/loan-forbearance |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | finance |
| language | en |
| tags | ["agreement","drafting","transactional"] |
Loan Forbearance Agreement
Produce a lender-protective, temporary forbearance agreement for a commercial loan default.
Prerequisites
- Loan documents — note, loan agreement, security agreement, mortgages, guaranties, prior amendments
- Parties — legal names, entity types, state of formation, addresses, signing authority, guarantors
- Default facts — specific defaults, dates, amounts, covenant breaches, notices given
- Payoff data — principal, accrued interest, fees, default interest, protective advances
- Collateral — description, perfection status, valuations, insurance
- Forbearance terms — start/end dates, payment schedule, deferred amount treatment, fees
- Reporting — required financials, frequency, format, deadlines
- Governing law/venue — per existing loan documents unless business reason to change
- Approvals — lender credit approval, borrower board/consents if required
Output Structure / Process
1. Title and Parties
| Role | Legal Name | Entity Type/State | Address | Defined Term |
|---|
| Lender | | | | "Lender" |
| Borrower | | | | "Borrower" |
| Guarantor(s) | | | | "Guarantor" |
2. Recitals (Contractual)
- Original loan documents with dates and principal
- Current outstanding balance and maturity
- Collateral summary
- Specific defaults (list each)
- Borrower request; lender discretionary accommodation
- Acknowledgment of debt, lien validity, and no defenses
- State that recitals are contractual and incorporated
3. Defined Terms
Define at minimum: "Forbearance Period," "Forbearance Payments," "Existing Defaults," "Deferred Amounts," "Forbearance Termination Date," "Loan Documents."
4. Forbearance Terms
| Item | Term |
|---|
| Effective Date | |
| Forbearance Period Start/End | |
|
