TO: __________________
_____________________
_____________________

Re:  Your account with __________________________

Your account with __________________________ has been transferred to ___________________________. Effective immediately, all payments in regard to this account must be made to ___________ ________________ at the following address:
__________________________________
__________________________________

You will not receive credit for payments made to ______________________. ALL PAYMENTS MUST BE MADE TO ___________________________.

Dated: ___________________

__________________________________
for ____________________________

cc Party to Whom the Payments are to be Sent

Assignment of Debtor Account, Notice
Review list

This review list is provided to inform you about this document in question and assist you in its preparation.  This Assignment notice can be used in a variety of circumstances ranging from outright selling a debt or Accounts Receivable, to a host of other circumstances.  We recommend you copy the party to whom the payments are sent to fulfill your obligations to them as well as to inform the debtor that this has been done.

1. Mail and fax notices to the debtor.  Send a copy to the new party and keep a copy in the file of your transaction with them.

Date:

Dear Sir or Madam:

You are authorized and directed to debit our Account, named ____________, with our Account number: ______________, for $ ___________ for a one time payment, payable payable to: _________________ (Name), at _____________ (Bank), with account number ________________ and ABA Routing Number _________________.  Please charge our account any fees to accomplish this transaction.

This shall be your good and sufficient authority for doing so.

Best regards,

_____________
Authorized Signer of Account
cc Recipient of debit

Debit Your Account, One Time Authorization
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  Debiting accounts has become a quick way to transfer funds to pay obligations and can bring advantages to both parties.  Be sure the signer is an authorized signer of the account being debited.  You are advised to use the same form, signed by the same person, to expedite this at your Bank.  After they get to know you, the Bank will often accept a faxed notice versus a hand delivered one.  You do not need a witness since you do not need one for a normal bank check.

$___________________(1)_________ ______________(2)_____________
______________(3)_____________

FOR VALUE RECEIVED, the undersigned, (jointly and severally, if more than one)
promises to pay to _____________(4)________________, of __________(5)_____________, or
order, in the manner hereinafter specified, the principal sum of _______(6)__________ Dollars
($________________) with interest from date at the rate of __________(7)_________ percent
(_____%) per annum on the balance from time to time remaining unpaid. The said principal and
interest shall be payable in lawful money of the United States of America at the address stated
above, or at such place as may hereafter be designated by written notice from the holder to the
maker hereof, on the date and in the manner following:

Principal and interest payments of $_____________(8)___________ each, due on or
before the ________(9)___________ day of each month, beginning _____________(10)
________, ____________(11)________, and continuing each month thereafter for a period of
_____________(12)____________ years.

Then on ______________(13)____________, simultaneously with the payment of the
____________(14)___________ monthly payment, the full amount of unpaid principal, plus
accumulated interest and any advances made, shall balloon and become immediately and fully
due and payable, without demand.

This note with interest is secured by a mortgage on real estate, of even date herewith,
made by the maker hereof in favor of the said payee, and shall be construed and enforced
according to the laws of the State of _____________(15)_______. The terms of said mortgage
are by this reference made a part hereof.

If default be made in the payment of any of the sums or interest mentioned herein or in
said mortgage, or in the performance of any of the agreements contained herein or in said
mortgage, then the entire principal sum and accrued interest shall at the option of the holder
hereof become at once due and collectible without notice, time being of the essence; and said
principal sum and accrued interest shall both bear interest from such time until paid at the highest
rate allowable under the laws of the State of _____________(16)________.

Failure to exercise this option shall not constitute a waiver of the right to exercise the
same in the event of any subsequent default.

Each person liable hereon whether maker or endorser, hereby waives presentment,
protest, notice, notice of protest and notice of dishonor and agrees to pay all costs, including a
reasonable attorney’s fee, whether suit be brought or not, if, after maturity of this note or default
hereunder, or under said mortgage, counsel shall be employed to collect this note or to protect
the security of said mortgage.

Whenever used herein the terms “holder”, “maker” and “payee” shall be construed in the
singular or plural as the context may require or admit.

“Maker”
____________(17)___________

_____________________________, referred to as BORROWER, and _____________________________, referred to as BANK, agree:

That the BANK shall lend sums of money to the BORROWER from time to time, including:
Principal amount: $____(_____________________________&___/100 dollars)
The initial rate for the loan shall be _____%
The interest rate shall be adjusted every _______ from the closing date of the loan
The first adjustment shall take place on _______________
The overall maximum rate for the loan shall be _____%
The rate on the loan shall not be less than ____%
The reference rate used for adjustment shall be ____

The advance made herein shall be evidenced by a promissory note.
The following will be the terms of repayment:

The note shall be due, in full, on ___________________.

BORROWER assigns to BANK any and all deposits with BANK as additional collateral to BANK. Upon default, BANK shall be entitled to set off the deposits in satisfaction of any sum due to BANK by the BORROWER.

The BORROWER shall not use the proceeds of this loan for household, personal or family obligations.

The BORROWER represents that the loan proceeds will be used for business purposes.

The BORROWER shall maintain a life insurance policy in the following amounts related to the following individuals:
Individuals: ________________________
Amounts: The principal and interest balance then outstanding on the loan.

The BORROWER shall not be required to obtain the same through BANK and may assign policies from insurers licensed to offer life insurance in the State of ___________.

The extension of credit made herein shall be secured by a lien on the following property:
_______________________________________________________________

and BORROWER shall execute such financing statements and security interests as BANK may reasonably require from time to time to perfect its security interest.

Dated: ____________________________

_________________________________________________
Borrower
________________________________________________
Bank

Bank Loan Agreement
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This is a straightforward bank loan agreement.

1.  Make multiple copies.  Give one copy to each related party.

I, ___________________, (“Debtor”) hereby agree for judgment against me for $_________ as of today, ____________, to ______________ (“Creditor”). I, Debtor, do further agree not to protest any collections efforts, in any Court of law or otherwise, against me for this amount of money, plus accrued interest, and any legal fees, by Creditor, its successors or assigns.

I further agree, not to protest any attachments to any property I own directly or indirectly, in any Court of law or otherwise, for $___________ (“Judgment Amount”) plus accrued interest and any legal fees incurred by Debtor, its successors or assigns.

This Agreement for Judgment arises out of my default on a Note or Notes for $________, plus accrued interest and legal fees, due on _____________.

I, Debtor, do agree to this Agreement for Judgment without any reservations and in consideration of immediate forbearance, for 10 days, on collection for my Note in Default to Creditor.  Creditor does hereby agree to accept this Agreement for Judgment in return for Debtor’s Agreement to permit entry of a Judgment for the above amount in a Court of competent jurisdiction immediately.

A copy of the original Note or Notes is (are) attached.

______________________
Debtor

______________________
Creditor

______________________
Date

Enc.  Copy or copies of the Note or Notes outstanding.

Agreement for Judgment, with Debtor
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This Agreement for Judgment should be used by a Creditor with a Debtor after the Default date under a note has passed.  The Creditor benefits by getting the Debtor to waive any contest of the note; the Debtor gains by getting an extention of the collection process; both parties win by cutting down on their legal expenses.

Creditors are advised to move more carefully in the collection process in order to increase the commitment of the Debtor to repayment.  This helps a well intentioned Debtor by providing more time; it assists the Creditor by eliminating legal hurdles to perfecting their interests in the assets of the Debtor.

If the Debtor will not sign the Agreement, then move instantly to formal foreclosure for judgment in the appropriate court of law.  You should seek legal counsel to execute these tasks and assist in collecting the outstanding judgment, interest, and legal costs due under the original note.

1. Both parties should sign the Agreement.   Creditor should maintain the file and keep the originals.

TO: ________________________
____________________________
____________________________
____________________________

Attention: __________________

FROM: ______________________
____________________________
____________________________
____________________________

Attention: __________________

Dated: ___________________________

Pursuant to Section 9-208 of the Uniform Security Code, ____________________, as debtor, requests that the Secured Party, __________________________, provide:

A statement of account, indicating the aggregate amount of unpaid indebtedness as of _______________________. Approval of the following statement of collateral as constituting a correct statement of the collateral claimed by Secured Party as of ______________________.

See Exhibit “1″ to this form.

The statement above is (check one):

__ Accepted as correct

__ Incorrect, our corrections or response are attached hereto

Dated: ____________________________________

________________________, by:

___________________________________________________
An Authorized Officer

Title: ___________________________________________

_________________________, by:

__________________________________________________
An Authorized Officer

Title: _____________________________________

Debtor Request for Certified Statement from Secured Party
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This is request from a debtor to secured party to certify the exact amount then due from debtor.  This is useful for a variety of reasons, among them for the benefits of your financial statements and your auditors, should you have them.

1. Make multiple copies.  Put one in your financial file, another in the secured party’s file, and the other in a follow-up file.

_____________, referred to as OWNER, and _____________, referred to as CREDITOR, agree:

OWNER is indebted to CREDITOR in the sum of $______(________________&___/100 dollars); to secure repayment of the debt, OWNER pledges to CREDITOR ______ shares of ______ stock of __________________.

OWNER agrees to execute all necessary documents to perfect the pledge.

So long as OWNER is indebted to CREDITOR, the CREDITOR shall have the right to vote the shares.

CREDITOR shall be entitled to any dividends, and CREDITOR shall credit the debt with the amount of the dividends collected.  CREDITOR may optionally reinvest the dividends, and any shares so purchased shall be subject to the pledge.

If OWNER is current in the obligation underlying this pledge, CREDITOR will release portions of the pledged stock as follows:

$______(_______________&____/100 dollars) per share.

A copy or copies of the stock certificate or certificates are attached.

Dated: _________________________________________

______________________________________________________________
Creditor

______________________________________________________________
Owner

Pledge of Stock
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  Pledges of stock can be used by creditors to get more collateral from debtors behind in their obligations.  This is an interim step that creditors can use to protect their interests without unduly upsetting a debtor.  From the debtor’s point of view, they are usually better off liquidating part of their stock in order to pay the creditor rather than go through all of this.  Once the debtor gives up the stock, then the creditor assumes control over its liquidation should the debtor continue to be in default or go into default.

1. Make multiple copies.  Give one to each signatory.  As a creditor, be sure to get the actual stock certificate (s) and get the proper paperwork in order in case you need to liquidate them.

______________, referred to as DEBTOR, and __________, referred to as CREDITOR, agree:
______________ is indebted to CREDITOR in the amount of $______ (_____________________&___/100 dollars) by the terms of the agreement named  _________________, dated ____________. DEBTOR assigns to CREDITOR the following policy of life insurance:
Policy number: __________________________________________________

Face amount: $___________(_______________________&____/100 dollars)
Amount of loans/charges against policy: $___________(_____________ __________&____/100 dollars) as collateral for the debt.

Any and all proceeds from the policy are assigned to the CREDITOR, to the extent of principal and interest due upon the debt, and any renewals and extensions thereof. The DEBTOR shall prepare any further instruments required to effect this pledge.  Any proceeds that exceed the above obligations shall be immediately turned over to the Estate of Debtor.

Dated: _________________________

______________________________________________
Debtor

_____________________________________________
Creditor

Pledge of Life Insurance
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  The Pledge of Life Insurance proceeds is similar to that for the Pledge of Stock assets.  See the notes under the Pledge of Stock document for advice and counsel on this subject.  This suggestion is made to be sure you understand there are no material differences between the effect of these pledges other than you can not “sell” an insurance pledge as you can a stock asset.

1. Make multiple copies.  Be sure each relevant party has a copy.

Date:

Settlement Talks Only

Name of Creditor (Person to Whom Debt is Owed)
Address:

Dear Sir or Madam:

I refer to our recent discussion, pursuant to which we disputed the amount being claimed by you in relation to our alleged outstanding balance or bill with you.

You offered to settle the matter in full for $ ___________, of an originally claimed amount of $ ____________.   In addition, you also agreed to acknowledge that this settlement would extinguish any debt we owed you as of the date of your receipt of that sum.

We have not received your confirming offer to do this in writing.  Please forward it at your earliest convenience.

By accepting such payment, you are deemed to have accepted the same in full satisfaction of such obligation, and we will accordingly be able to rely on that representation and consider the debt to be satisfied in full.

Our discussion above does not prejudice any rights we may have against you for the various reasons outlined to you before and others not discussed yet.  In addition, this settlement discussion is done in good faith and therefore does not prejudice our rights.

Best regards,

_____________
Debtor (s)

Debt Settlement Letter, Debtor
Review List

This review list is provided to inform you about the document in question and assist you in its preparation.  Early efforts to settle a debt, especially with an offer of a 100% payout of the reduced sum, often result in big savings for the debtor as well as extinguishing a nasty dispute.  The challenge is to avoid being trapped by sending in money in settlement that the debtor then claims is only for balance reduction.  The way to avoid this is to require a clear settlement offer from the creditor prior to tendering the money.  Also, you are always on stronger ground if they draft the agreement because they then have more of the burden of proof on them, as the drafter, than you do, as well as they are more comfortable, as a rule, with their own documents.

Debt reduction negotiations depend largely, as in most negotiations, on how strong the other side’s hand is.  If they have good security, you cannot do much but you usually can do 10% to 20%.  If they have no security, and are concerned about you as a credit risk, they may be willing to take a discount of 25% to 50%, or more.  The other factor in the equation is “when” to make your pitch for a reduced offer.  Generally the company credit people themselves are unwilling to do this though they will turn it over, often, to contingency credit people who will take a third off whatever is collected plus offer you a reduced amount.

In our experience, you can try with the original holder but remember you will get another crack at it with the collection people they assign the case to.  As with all negotiations, it is a matter of how good you are at it and your ability to settle at a reasonable number for them as well as yourself.

1. The term “settlement talks only” has a specific meaning to most lawyers and collection people.  Courts like settlement talks.  If you say this is for Settlement Talks Only, most courts will not want to review the letter and, most importantly, not let the other side abuse you with it, if it comes down to trial.  This is as much a custom as a legal fact or theory; therefore, you cannot rely on it absolutely but it should be at least somewhat helpful.

2. The other language is constructed so you do not get trapped into paying the settlement amount and then be dunned for the balance.  The best way to achieve this is to get them to send you the offer themselves.

3. Many collection people try to whip up emotions to get you going and embarrass you into paying.  This is a business for them.  If they use this approach, it is only a tactic.  Do not be put off.  Don’t argue.  Just be firm about what you can and cannot do.  In this case, being weak is to come out better (that is, with a lower settlement percentage).  Remember, they get paid on commission, as a rule, unless you are dealing with in-house people (and even then many do), so time is money for them.  Interestingly, there is more pressure on them to go down to the final limit of their discount authority—than there is for you.  If you gauge this correctly, you can estimate pretty well when they get there.  Then you need to take the offer, if you can, and pay it.

Name on Account:
Account Number:

Dear Customer Services Representative:

This letter serves as notification of my refusal of the new terms offered by you in connection with my credit card.  Please cancel my credit card unless you will do the following:  _____________________________________________________________
___________________________________________________________.

I will assume that the account has been closed unless I hear that you have modified your terms as requested above.

Thank you for your good services to date, which have been much appreciated.

Please let me know of your decision at your earliest convenience but without disrupting your normal review process timetable.

Best regards,

___________
Writer

Credit Card, Negotiations for Better Terms
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This letter is an attempt to negotiate better terms with your Credit Card company.  As with most negotiations (see also our Negotiations Handbook disc), your most promising approach is to narrow your focus.  In this case, you should either ask for an elimination or reduction of the annual fee or a lower interest rate on unpaid balances.   To ask for both is to risk getting neither.  The best way to eat the elephant is one bite at a time. If you focus on one item, and get it this year, ask for the other one next year.  Credit card companies, as with most suppliers, are apt to accept small concessions, one at a time.  This one may be small enough to be discharged by the first level of order clerk.  If so, you will probably get it.  Then, take the same tactic next year and perhaps you can get that as well.  As Wall Street says, “Be a bear, be a bull, but don’t be a pig!”