Forbearance Contract (Commercial Property Loan) (Pre-Workout) (Texas)

The "Forbearance Contract (Commercial Property Loan) (Pre-Workout) (Texas)" is a legal template that outlines an agreement between a lender and a borrower in the context of a commercial property loan. Under the jurisdiction of Texas law, this template sets forth the terms and conditions that would apply in situations where the borrower is experiencing financial difficulties that may jeopardize their ability to fulfill their loan obligations.

The purpose of this contract is to establish a temporary arrangement called forbearance, wherein the lender agrees to delay or temporarily suspend certain rights to take legal action or enforce remedies that they may have due to the borrower's default or breach of loan terms. This pre-workout forbearance agreement is entered into prior to pursuing other available remedies, allowing the parties involved to explore alternative solutions and improve the borrower's financial situation.

This template covers various aspects such as the borrower's acknowledgement of their default or breach, the specific loan details, including outstanding amounts and interest rates, and the specific actions the lender will refrain from taking during the forbearance period. It may also outline the conditions and obligations the borrower must meet to maintain the forbearance arrangement, such as providing regular financial updates or adhering to a specific payment plan.

Given the complex nature of commercial property loans, this legal template ensures that both parties can formalize their agreements while complying with the laws and regulations applicable in Texas and the broader United States. It serves to protect the rights and interests of both the lender, who seeks to preserve the value of their collateral, and the borrower, who aims to avoid the negative consequences of enforcement actions and work towards resolving their financial difficulties.