Model Form of Forbearance Agreement

In my last post I provided a report that discussed the issues that arise when negotiating and finalizing a forbearance agreement.  This week I’ve attached a model form of forbearance agreement  that can be used as a reference for these types of arrangements.  The summary to the form highlights the key issues that need to be considered in the drafting process including the length of the forbearance, modifications to the underlying credit arrangements and covenants from the borrower as to actions it will take during the forbearance period to keep the lender informed and cure the causes of the default that led to the agreement in the first place.

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