Release of Debt for Less

Terminate your promissory note and settle a debt for less than is owed.  To avoid future disputes over payment, use this simple release. All the instructions you need to fill out the form are included, so that you can:

  • identify the promissory note that will be terminated
  • release each party from any claims relating to the note
  • terminate the note

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See below for a full product description.

This Release of Debt Agreement (the "Agreement") is intended as a settlement and release effective as of the date of signature below (the "Effective Date") between  ("Borrower") and  ("Lender") (collectively referred to as the "parties").

The Note

 A dispute has arisen between the parties regarding a promissory note dated  for the principal sum of $ (the "Note").

Release

Contingent upon fulfillment of the settlement requirements set forth in this Agreement, each party, for itself and for its heirs, successors, and assigns, voluntarily releases the other party and its heirs, successors, and assigns from any and all actions, causes of action, debts, bills, demands, damages, costs, expenses (including attorneys' fees), liabilities, or other losses known or unknown, which may presently exist or later arise, regarding the Note. This Agreement applies solely to the Note.

Termination of the Note

The parties agree that the Note, and all obligations and conditions contained in the Note, are unconditionally terminated.

No Admission of Liability

This Agreement constitutes a compromise. It is not an admission of liability by either party. Each party agrees to the foregoing release with full knowledge of any and all rights it may have. Each of the parties acknowledges they have full authority to execute this agreement in the capacities for which they have signed, below.

Payment

As full consideration for this Agreement, Borrower shall pay to Lender the amount of $ upon execution of this Agreement.

General Provisions

(a) Severability: If a court finds any provision of this Agreement invalid or unenforceable, the remainder of this Agreement shall be interpreted so as best to effect the intent of the parties.

(b) Integration: This Agreement expresses the complete understanding of the parties with respect to the subject matter and supersedes all prior proposals, agreements, representations, and understandings. This Agreement may not be amended except in a writing signed by both parties.

(c) Waiver: The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.

(d) Attorney Fees and Expenses: In a dispute arising out of or related to this Agreement, the prevailing party shall have the right to collect from the other party its reasonable attorney fees and costs and necessary expenditures.

(e) Governing Law: This Agreement shall be governed in accordance with the laws of the State of .

SIGNATURES

Borrower:
Signature:________________________________________________________
Printed Name:_____________________________________________________
Title: _____________________________________________________

Lender:
Signature:________________________________________________________
Printed Name:_____________________________________________________
Title: _____________________________________________________________
Date:_______________________________________________________

 

Certificate of Acknowledgment of Notary Public

 

State of    ________________________________    )
                                                                                     )           ss
County of  ________________________________    )

On _____________________, before me, ______________________________, a notary public in and for said state, personally appeared ______________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he or she executed the same in his or her authorized capacity and that by his or her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of ___________ that the foregoing paragraph is true and correct.

                                                                        WITNESS my hand and official seal.
                                                                        _____________________________________
                                                                        Notary Public for the State of ______________
                                                                        My commission expires __________________

[NOTARY SEAL]

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