forbearance-agreement

name	forbearance-agreement
title	Forbearance Agreement (Loan)
description	Drafts loan forbearance agreements that temporarily suspend lender enforcement rights during borrower default. Triggers when drafting forbearance agreements, loan workout documents, payment modification agreements, or temporary enforcement suspension arrangements in commercial lending.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/forbearance-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	finance
language	en
tags	["agreement","drafting","transactional"]

Forbearance Agreement (Loan)

Temporarily suspends lender enforcement rights while preserving all remedies, creating a structured roadmap for the forbearance period.

Prerequisites

Gather before drafting:

1. Loan documents — loan agreement, note, security agreements, guaranties, prior amendments
2. Loan details — principal balance, interest rate, payment history, maturity date
3. Default information — nature of defaults, missed payment dates/amounts, covenant violations
4. Collateral — type, location, current valuation
5. Parties — full legal names, entity types, states of formation, guarantors
6. Forbearance terms — desired duration, proposed payment structure, lender conditions
7. Amendment requirements — original loan doc provisions governing modifications

Document Architecture

Section	Purpose
Title & Date	"Forbearance Agreement and Temporary Modification of Loan Payment Terms"
Parties	Full legal ID, entity type, formation state, role
Recitals	Factual/legal foundation
Forbearance Terms	Period, payment modifications
Conditions & Covenants	Precedent conditions, ongoing borrower obligations
Lender Reservation of Rights	Narrow commitments, broad reservations
Representations & Warranties	Mutual reps, borrower acknowledgments
Default & Termination	Triggers, consequences
Release & Waiver	Borrower release, reaffirmation
General Provisions	Governing law, integration, notices, execution
Exhibits	Note copy, payment schedule, payoff statement

Core Drafting Workflow

1. Recitals

Include all of:

• Original loan reference (date, principal, balance, rate, maturity)
• Security/collateral description establishing lender's secured position
• Specific default description (dates, amounts, violations) — professional tone
• Borrower requested forbearance; lender agrees in sole discretion without obligation