Agreement to Extend Debt Payment Terms

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Agreement to Extend Debt Payment Terms

Agreement to Extend Debt Payment Terms

RECITALS

WHEREAS, {{debtor_company_name}} (hereinafter referred to as “the Debtor”), with its registered office at {{debtor_company_address}}, is indebted to {{creditor_company_name}} (hereinafter referred to as “the Creditor”), with its registered office at {{creditor_company_address}}, in the original principal amount of {{original_debt_amount}} {{currency}} ({{original_debt_amount_words}} {{currency}}) arising from {{original_agreement_description}} dated {{original_agreement_date}} (hereinafter referred to as “the Original Agreement”).

WHEREAS, the Debtor has encountered unforeseen financial challenges, making it difficult to adhere to the original repayment schedule.

WHEREAS, both parties desire to amend the terms of repayment of the outstanding debt to facilitate its full settlement and avoid further legal or financial complications.

AGREEMENT TO EXTEND PAYMENT TERMS

Subject to the terms and conditions set forth herein, the Creditor hereby agrees to extend the payment terms for the outstanding debt, which currently stands at {{outstanding_debt_amount}} {{currency}} ({{outstanding_debt_amount_words}} {{currency}}) as of {{new_agreement_effective_date}}.

NEW PAYMENT SCHEDULE

The Debtor agrees to repay the outstanding debt to the Creditor according to the following revised payment schedule:

— A down payment of {{down_payment_amount}} {{currency}} ({{down_payment_amount_words}} {{currency}}) shall be due on or before {{down_payment_date}}.

— The remaining balance of the debt shall be paid in {{number_of_installments}} ({{number_of_installments_words}}) equal monthly installments of {{installment_amount}} {{currency}} ({{installment_amount_words}} {{currency}}), commencing on {{first_installment_date}} and continuing on the {{payment_day_of_month}} day of each subsequent month until the entire outstanding debt, including any agreed-upon interest, is fully repaid.

— The final payment shall be due on or before {{final_payment_date}}.

INTEREST

Interest on the outstanding debt shall accrue at a revised rate of {{new_interest_rate}}% per annum, calculated on the reducing balance. This interest shall be payable along with the principal installments.

LATE PAYMENT PENALTY

Any installment not received by the Creditor within {{grace_period_days}} ({{grace_period_days_words}}) days of its due date shall incur a late payment penalty of {{late_payment_penalty_percentage}}% of the overdue amount, compounded monthly, or {{late_payment_flat_fee}} {{currency}} ({{late_payment_flat_fee_words}} {{currency}}), whichever is greater.

DEFAULT

In the event that the Debtor fails to make any payment as per the new payment schedule, and such default continues for a period of {{default_grace_period_days}} ({{default_grace_period_days_words}}) days after written notice thereof from the Creditor, the entire outstanding balance of the debt, together with accrued interest and penalties, shall become immediately due and payable without further demand or notice.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of {{country_name}}.

ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties.

FORCE MAJEURE

Neither party shall be held liable for any delay or failure in performance of any part of this Agreement to the extent that such delay or failure is caused by acts of God, war, revolution, riot, civil commotion, strikes, lockouts, or any other cause beyond the reasonable control of that party.

NOTICES

Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or sent by registered mail to the addresses first mentioned above, or to such other address as either party may designate in writing to the other from time to time.

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

FOR THE CREDITOR:

_____________________________

{{creditor_authorized_signatory_name}}

{{creditor_authorized_signatory_title}}

Date: {{creditor_signature_date}}

FOR THE DEBTOR:

_____________________________

{{debtor_authorized_signatory_name}}

{{debtor_authorized_signatory_title}}

Date: {{debtor_signature_date}}

WITNESS:

_____________________________

{{witness_name}}

{{witness_address}}

Date: {{witness_signature_date}}