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Loan Forbearance

Draft Loan Forbearance Agreements in Minutes, Not Hours

12 minutes with Para

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Get started with Para

Para is an AI colleague for legal teams. Send it this work by email, Teams or Slack, and it hands back the finished document.

12 minutes with Para

What you'll need

  • Loan Documents
  • Default Information
  • Forbearance Term Sheet

Plans from $20 a month, with usage included.

Workflow

Overview

CaseMark's Loan Forbearance Agreement skill uses AI to draft comprehensive, lender-protective forbearance agreements for U.S. commercial loan defaults. The tool captures existing defaults, structures payment deferrals, establishes conditions precedent, and generates borrower releases and guarantor reaffirmations — all in a fraction of the time required for manual drafting.

Drafting commercial loan forbearance agreements is a time-intensive process that requires careful coordination of loan documents, default histories, payment calculations, and protective provisions. Missing a single default, omitting a release clause, or failing to properly preserve lender remedies can expose the institution to significant legal and financial risk.

CaseMark's AI analyzes your loan documents and default information to generate a complete, lender-protective forbearance agreement with all critical provisions. The tool systematically captures every default, structures payment terms, drafts borrower acknowledgments and releases, and preserves all existing lender rights — ensuring nothing falls through the cracks while dramatically reducing turnaround time.

How to hand this to Para

  1. 1. Send Para the files

    Email them, drop them in a Teams or Slack message, or upload them.

  2. 2. Para runs the Loan Forbearance skill

    It works from your files and checks its citations against the record.

  3. 3. The finished document comes back

    Para returns it where you asked, usually as a DOCX, and offers the next step.

Example request · email, Teams or Slack
Para, run the Loan Forbearance skill for the Garcia matter. I've attached the Loan Documents, Default Information and Forbearance Term Sheet. Send the finished draft back here as a DOCX.

What Para does

  1. 1. Upload your loan documents, default information, and proposed forbearance terms
  2. 2. AI analyzes the loan structure, identifies defaults, and drafts a comprehensive forbearance agreement
  3. 3. Review and customize party details, payment schedules, conditions, and release language
  4. 4. Export the finalized forbearance agreement in your preferred format (DOCX, PDF)

What you get

  • Title and Parties Table

  • Contractual Recitals

  • Defined Terms

  • Forbearance Terms and Payment Schedule

  • Conditions Precedent

  • Borrower Acknowledgments and Releases

  • Guarantor Reaffirmation

  • Reporting Requirements

  • Termination Events and Remedies

  • Miscellaneous Provisions and Signature Blocks

What it handles

  • Comprehensive recitals capturing all existing defaults and outstanding balances

  • Structured forbearance terms with payment schedules and deferral treatment

  • Conditions precedent and termination event provisions

  • Borrower acknowledgments, waivers, and release language

  • Guarantor reaffirmation and collateral preservation clauses

  • Reporting requirements and compliance monitoring framework

Required documents

  • Loan Documents

    Promissory note, loan agreement, security agreement, mortgages, guaranties, and any prior amendments or modifications

    .pdf, .docx

  • Default Information

    Details of specific defaults including dates, amounts, covenant breaches, and notices given, along with current payoff data

    .pdf, .docx, .xlsx

  • Forbearance Term Sheet

    Proposed forbearance terms including dates, payment schedule, fee structure, and any special conditions

    .pdf, .docx

Supporting documents

  • Collateral Documentation

    Collateral descriptions, appraisals, insurance certificates, and perfection documentation

    .pdf, .docx

  • Borrower Financial Statements

    Recent financial statements, tax returns, or other financial data relevant to the forbearance terms

    .pdf, .xlsx

  • Prior Correspondence

    Default notices, demand letters, or prior workout correspondence between lender and borrower

    .pdf, .docx

Why teams use it

Reduce forbearance agreement drafting time from hours to minutes while maintaining lender-protective standards

Ensure no defaults are overlooked with systematic identification and documentation of all existing breaches

Generate consistent, comprehensive agreements with all critical provisions including releases, waivers, and termination events

Streamline loan workout processes with structured templates that adapt to your specific deal terms and collateral

Questions

What types of commercial loans does this cover?

CaseMark's forbearance skill handles all standard U.S. commercial loan structures including term loans, revolving credit facilities, and real estate-secured loans. The AI adapts the agreement to match your specific loan documentation and collateral structure.

Does the agreement protect all existing lender rights?

Yes. CaseMark drafts the agreement to expressly preserve all lender rights and remedies, including acceleration, foreclosure, and collection. The forbearance is structured as a temporary, discretionary accommodation that does not waive any existing defaults or create new obligations for the lender.

Can I customize the forbearance period and payment terms?

Absolutely. You provide the proposed forbearance dates, payment schedule, interest rate treatment, fee structure, and deferral terms. CaseMark incorporates these into a structured agreement with clear termination triggers and default provisions.

Does it include borrower releases and acknowledgments?

Yes. CaseMark generates comprehensive borrower acknowledgments of the debt, lien validity, and absence of defenses, along with release language covering claims against the lender. Guarantor reaffirmation provisions are also included when applicable.

How does CaseMark handle multiple defaults and guarantors?

The AI captures and itemizes each specific default with dates, amounts, and covenant breaches. It also generates individual guarantor reaffirmation provisions and ensures all guaranty obligations remain in full force throughout and after the forbearance period.

Can I use this for loan workouts beyond forbearance?

CaseMark's skill is optimized for forbearance agreements, standstill arrangements, payment deferrals, and cure-period extensions. For more complex restructurings involving principal modifications or new money, the generated agreement provides a strong foundation that can be expanded by counsel.

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