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Loan Forbearance

Draft Loan Forbearance Agreements in Minutes, Not Hours

12 minutes with CaseMark

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12 minutes with CaseMark

What you'll need

  • Loan Documents
  • Default and Payoff Information
  • Proposed Forbearance Terms

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

Workflow

Overview

CaseMark's Loan Forbearance Agreement skill automates the drafting of lender-protective commercial forbearance agreements that temporarily suspend remedies while preserving all lender rights. The AI captures existing defaults, structures payment deferrals, defines conditions precedent, and incorporates borrower releases and guarantor reaffirmations into a comprehensive, practice-ready document.

Drafting commercial loan forbearance agreements is a high-stakes, time-sensitive process that requires meticulous attention to existing loan terms, default details, and lender protections. Attorneys must manually cross-reference multiple loan documents, calculate outstanding balances, and ensure that every protective provision—from borrower releases to guarantor reaffirmations—is properly captured, all while working under tight workout deadlines.

CaseMark automates the heavy lifting of forbearance agreement drafting by analyzing your uploaded loan documents and default details to produce a comprehensive, lender-protective agreement. The AI structures recitals, defined terms, payment schedules, conditions precedent, termination events, and release provisions into a cohesive document that preserves all lender rights while accurately reflecting the specific workout arrangement.

How it works

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

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

  3. 3. Review and customize party details, payment schedules, conditions, and protective provisions

  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 frameworks

  • Borrower acknowledgments, waivers, and release provisions

  • Guarantor reaffirmation and collateral preservation clauses

  • Reporting requirements and compliance monitoring provisions

Required documents

  • Loan Documents

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

    .pdf, .docx

  • Default and Payoff Information

    Details of specific defaults, dates, amounts, covenant breaches, outstanding principal, accrued interest, fees, and protective advances

    .pdf, .docx, .xlsx

  • Proposed Forbearance Terms

    Proposed forbearance period, payment schedule, deferral treatment, fees, reporting requirements, and conditions

    .pdf, .docx

Supporting documents

  • Collateral Valuations

    Appraisals, insurance certificates, UCC search results, and collateral descriptions with perfection status

    .pdf, .xlsx

  • Borrower Financial Statements

    Recent financial statements, tax returns, or other financial data relevant to the borrower's current condition

    .pdf, .xlsx

  • Prior Correspondence

    Default notices, demand letters, cure notices, 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 comprehensive capture of all existing defaults, outstanding balances, and collateral positions

Generate internally consistent provisions where payment schedules, termination events, and remedies align seamlessly

Standardize forbearance documentation across your lending portfolio for consistent risk management

Questions

What types of commercial loans does this cover?

CaseMark's forbearance skill handles a wide range of commercial loan types including term loans, revolving credit facilities, real estate loans, and asset-based lending. The AI adapts the agreement structure to match your specific loan documentation and collateral framework.

How does the AI ensure the agreement is lender-protective?

CaseMark drafts from a lender-protective posture by default, incorporating borrower acknowledgments of debt validity, waivers of defenses, releases of claims, reservation of all lender rights and remedies, and clearly defined termination events that restore full enforcement capabilities.

Can I customize the forbearance terms and payment schedule?

Absolutely. You provide the specific forbearance period, payment amounts, deferral treatment, interest rates, and fees. CaseMark structures these into a comprehensive agreement while ensuring all related provisions—such as default triggers and termination events—remain internally consistent.

Does the output include guarantor provisions?

Yes. CaseMark automatically includes guarantor reaffirmation provisions, ensuring that guarantors acknowledge the forbearance arrangement, reaffirm their obligations under existing guaranties, and waive any defenses that might arise from the forbearance accommodation.

How does CaseMark handle multiple existing defaults?

CaseMark captures each existing default individually with specific dates, amounts, and covenant references. The agreement clearly distinguishes between existing defaults subject to forbearance and any new defaults that would trigger immediate termination of the forbearance period.

Can I use this for loan modifications or restructurings beyond forbearance?

While this skill is optimized for temporary forbearance agreements and standstill arrangements, the output provides a strong foundation for broader workout discussions. CaseMark structures the agreement to preserve all lender rights, making it suitable for cure-period extensions and payment deferrals as well.

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