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Debt Resolution Agreement
"I need a Debt Resolution Agreement for a PHP 5 million business loan between our manufacturing company and ABC Bank, with a structured payment plan starting March 2025 and including collateral provisions for our factory equipment."
1. Parties: Identifies and defines all parties to the agreement, including the creditor(s) and debtor(s), with their complete legal names and addresses
2. Background: Recitals explaining the context of the original debt, current situation, and the parties' intention to resolve the debt
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Acknowledgment of Debt: States the original debt amount, current outstanding balance, and acknowledgment by the debtor of the debt's validity
5. Terms of Resolution: Details the agreed resolution method, including payment amount, schedule, and any reduction or concessions
6. Payment Terms: Specifies payment mechanics, including method of payment, due dates, and processing details
7. Default Provisions: Defines what constitutes default and the consequences of defaulting on the agreement
8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement
9. General Provisions: Standard clauses including entire agreement, amendments, notices, and governing law
10. Execution: Signature blocks and execution requirements for all parties
1. Security Provisions: Include when the debt resolution is secured by collateral or guarantees
2. Release Provisions: Include when partial debt forgiveness is part of the resolution
3. Confidentiality: Include when parties wish to keep the terms of resolution private
4. Tax Considerations: Include when the resolution has significant tax implications for either party
5. Insurance Requirements: Include when insurance must be maintained on any collateral
6. Third-Party Rights: Include when other creditors or guarantors have interests in the debt
7. Alternative Dispute Resolution: Include when parties agree to specific dispute resolution mechanisms
8. Force Majeure: Include when parties want to address potential extraordinary circumstances affecting payment ability
1. Schedule A - Debt Calculation: Detailed breakdown of the original debt, accrued interest, fees, and current balance
2. Schedule B - Payment Schedule: Detailed payment schedule showing dates, amounts, and running balance
3. Schedule C - Collateral Details: Description and documentation of any security or collateral (if applicable)
4. Schedule D - Original Loan Documentation: Copies or references to the original loan agreements and related documents
5. Appendix 1 - Contact Information: Detailed contact information for all parties and their representatives
6. Appendix 2 - Payment Instructions: Detailed banking or payment processing instructions
Authors
Banking & Financial Services
Legal Services
Real Estate
Retail
Manufacturing
Construction
Healthcare
Education
Technology
Hospitality
Agriculture
Mining
Transportation
Telecommunications
Legal
Finance
Credit & Collections
Risk Management
Treasury
Compliance
Corporate Secretariat
Debt Recovery
Account Management
Business Development
Chief Financial Officer
Finance Manager
Credit Manager
Collections Manager
Legal Counsel
Corporate Lawyer
Debt Recovery Specialist
Risk Manager
Account Manager
Treasury Manager
Financial Controller
Compliance Officer
Business Development Manager
Recovery Officer
Credit Analyst
Financial Advisor
Corporate Secretary
Banking Officer
Restructuring Specialist
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