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Forbearance Agreement

Draft Loan Forbearance Agreements in Minutes

12 minutes with CaseMark

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Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

12 minutes with CaseMark

What you'll need

  • Loan Agreement & Promissory Note
  • Default Documentation
  • Proposed Forbearance Terms

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Forbearance Agreement skill drafts comprehensive loan forbearance agreements that temporarily suspend lender enforcement rights while preserving all remedies during borrower default situations. The AI produces structured, lender-protective documents covering forbearance terms, payment modifications, conditions precedent, reservation of rights, and termination provisions. Each agreement is tailored to the specific loan structure, default circumstances, and proposed workout terms.

Drafting loan forbearance agreements is a time-sensitive, high-stakes process that requires careful documentation of defaults, precise payment modification terms, and robust lender protections. Attorneys must balance urgency—borrowers in default need immediate relief—with the complexity of preserving lender remedies, documenting multiple defaults, and structuring compliant workout arrangements. Manual drafting often takes hours and risks omitting critical protective provisions.

CaseMark automates the drafting of comprehensive forbearance agreements by analyzing your existing loan documents, default details, and proposed terms. The AI generates a complete, structured agreement with proper recitals, forbearance terms, lender reservations of rights, borrower acknowledgments, and termination provisions—all in minutes. Attorneys can focus on negotiation strategy and client counseling rather than document assembly.

How it works

  1. 1. Upload your existing loan documents, default details, and proposed forbearance terms

  2. 2. AI analyzes loan structure, identifies defaults, and drafts a comprehensive forbearance agreement

  3. 3. Review and customize forbearance period, payment modifications, and lender protections

  4. 4. Export the finalized agreement in your preferred format (DOCX, PDF)

What you get

  • Title, Parties & Recitals

  • Forbearance Period & Payment Modifications

  • Conditions Precedent & Ongoing Covenants

  • Lender Reservation of Rights

  • Representations & Warranties

  • Default & Termination Provisions

  • Release, Waiver & Reaffirmation

  • General Provisions & Exhibits

What it handles

  • Comprehensive recitals with default identification and debt acknowledgment

  • Structured forbearance period with customized payment modification terms

  • Lender reservation of rights with narrow commitments and broad protections

  • Borrower representations, warranties, and release provisions

  • Default triggers and termination consequences with automatic remedy restoration

  • Integrated exhibits including payment schedules and payoff statements

Required documents

  • Loan Agreement & Promissory Note

    The original loan agreement, promissory note, and any prior amendments or modifications

    .pdf, .docx

  • Default Documentation

    Records of defaults including missed payment dates, amounts, covenant violations, and default notices

    .pdf, .docx, .xlsx

  • Proposed Forbearance Terms

    Outline of desired forbearance period, payment modifications, and lender conditions

    .pdf, .docx

Supporting documents

  • Security Agreements & Guaranties

    Collateral security agreements, UCC filings, mortgages, and personal or corporate guaranties

    .pdf, .docx

  • Collateral Valuation

    Current appraisals, valuations, or assessments of collateral securing the loan

    .pdf, .docx, .xlsx

  • Borrower Financial Statements

    Recent borrower financial statements, cash flow projections, or business plans supporting the workout

    .pdf, .xlsx

Why teams use it

Reduce forbearance agreement drafting time from hours to minutes while maintaining comprehensive lender protections

Ensure consistent inclusion of critical provisions including reservation of rights, borrower releases, and reaffirmation clauses

Accurately document complex default histories and payment modification structures with professional precision

Generate complete agreement packages with integrated exhibits, payment schedules, and payoff statements

Questions

What types of loan forbearance agreements can CaseMark draft?

CaseMark drafts forbearance agreements for commercial loans, including payment deferrals, temporary rate modifications, covenant waivers, and structured workout arrangements. The AI adapts to various loan structures including term loans, revolving credit facilities, and secured lending transactions.

How does the AI handle lender reservation of rights?

CaseMark drafts narrow lender commitments paired with broad reservations of rights, ensuring the forbearance does not constitute a waiver of existing defaults or future remedies. The AI preserves all lender enforcement options upon termination of the forbearance period.

Can the agreement include borrower release and reaffirmation provisions?

Yes. CaseMark automatically includes borrower release provisions covering claims against the lender, along with reaffirmation of the underlying debt obligations, guaranties, and security interests. These provisions are critical for protecting lender interests during workout situations.

Does CaseMark account for multiple defaults and guarantors?

Absolutely. CaseMark identifies and documents multiple defaults including missed payments, covenant violations, and cross-defaults. The AI also incorporates guarantor acknowledgments and ensures all parties to the original loan transaction are properly addressed in the forbearance agreement.

How does CaseMark handle termination triggers?

CaseMark drafts detailed termination provisions specifying events that end the forbearance period, including new defaults, breach of forbearance covenants, material adverse changes, and failure to meet milestone conditions. The consequences of termination, including automatic remedy restoration, are clearly defined.

Can I customize the payment modification schedule?

Yes. CaseMark generates flexible payment modification structures based on your proposed terms, including reduced payments, interest-only periods, payment deferrals, and catch-up schedules. You can review and adjust the payment schedule before finalizing the agreement.

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