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Forbearance Agreement

Draft Loan Forbearance Agreements in Minutes

12 minutes with CaseMark

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12 minutes with CaseMark

What you'll need

  • Loan Agreement and Note
  • Default Documentation
  • Forbearance Term Sheet

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. The AI generates structured agreements covering forbearance terms, payment modifications, conditions precedent, reservation of rights, and termination provisions tailored to your specific commercial lending scenario.

Drafting loan forbearance agreements is a time-sensitive, high-stakes process that requires careful balancing of temporary borrower relief with comprehensive lender protections. Attorneys must meticulously document defaults, preserve enforcement rights, structure modified payment terms, and ensure no inadvertent waivers — all while working under pressure to resolve an active default situation before it escalates.

CaseMark automates the drafting of forbearance agreements by analyzing your loan documents, default information, and proposed terms to generate a comprehensive agreement in minutes. The AI ensures all critical sections — from detailed recitals and reservation of rights to termination triggers and borrower releases — are properly drafted and internally consistent, letting attorneys focus on negotiation strategy rather than document assembly.

How it works

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

  2. 2. AI analyzes loan details, defaults, and collateral to draft a comprehensive forbearance agreement

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

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

What you get

  • Title, Parties, and Recitals

  • Forbearance Terms and Payment Modifications

  • Conditions Precedent and Ongoing Covenants

  • Lender Reservation of Rights

  • Representations and Warranties

  • Default and Termination Provisions

  • Release, Waiver, and Reaffirmation

  • General Provisions and Exhibits

What it handles

  • Comprehensive recitals with default history and loan references

  • Structured forbearance period with payment modification schedules

  • Lender reservation of rights with narrow commitments and broad protections

  • Borrower representations, warranties, and debt acknowledgments

  • Default and termination triggers with automatic consequence provisions

  • Release, waiver, and reaffirmation clauses

Required documents

  • Loan Agreement and 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

  • Forbearance Term Sheet

    Proposed forbearance terms including duration, modified payment structure, and lender conditions

    .pdf, .docx

Supporting documents

  • Security Agreements and Guaranties

    Collateral security agreements, guaranty agreements, and related pledge documents

    .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 forbearance request

    .pdf, .xlsx

Why teams use it

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

Ensure consistent inclusion of critical provisions like reservation of rights, borrower acknowledgments, and default triggers

Generate payment modification schedules and milestone requirements aligned with your proposed workout terms

Minimize risk of inadvertent waiver of lender rights through comprehensive preservation clauses

Questions

What types of loan forbearance agreements can CaseMark draft?

CaseMark drafts forbearance agreements for commercial lending scenarios including payment defaults, covenant violations, and maturity defaults. The AI handles both simple payment modifications and complex multi-default workout arrangements with structured remediation plans.

Does the agreement preserve the lender's enforcement rights?

Yes. CaseMark's AI drafts agreements with narrow lender commitments and broad reservations of rights, ensuring all existing remedies are preserved while temporarily suspending enforcement. The agreement explicitly maintains the lender's secured position and all underlying loan document protections.

Can I customize the forbearance period and payment terms?

Absolutely. CaseMark generates the agreement based on your proposed forbearance duration and payment structure, then allows you to review and adjust all terms. You can modify payment schedules, milestone requirements, and termination triggers before finalizing.

Does the agreement include borrower acknowledgment of the debt?

Yes. CaseMark automatically includes borrower acknowledgments of debt validity, outstanding balances, and default status. The agreement also incorporates borrower releases and reaffirmation clauses to protect the lender's position throughout the forbearance period.

How does CaseMark handle guarantor provisions?

CaseMark identifies guarantors from your uploaded loan documents and incorporates appropriate guarantor acknowledgments, reaffirmations, and consent provisions into the forbearance agreement. This ensures guaranty obligations remain fully enforceable during and after the forbearance period.

What happens if the borrower defaults during the forbearance period?

CaseMark drafts detailed default and termination provisions that specify triggers for early termination of the forbearance, including missed modified payments, new covenant violations, or failure to meet conditions. The agreement clearly outlines consequences and the lender's immediate right to exercise all preserved remedies.

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