Confession of Judgment (Cognovit Note)

CONFESSION OF JUDGMENT

(Cognovit Note - Commercial Transactions Only)

CRITICAL LEGAL WARNINGS

WARNING TO DEBTOR: BY SIGNING THIS DOCUMENT, YOU ARE AUTHORIZING ANY ATTORNEY TO APPEAR IN COURT AND CONFESS JUDGMENT AGAINST YOU WITHOUT PRIOR NOTICE OR OPPORTUNITY TO BE HEARD. A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A TRIAL. YOU SHOULD CONSULT AN ATTORNEY BEFORE SIGNING THIS DOCUMENT.

WARNING TO CREDITOR/ATTORNEY: This instrument is enforceable ONLY in jurisdictions that permit confessions of judgment for commercial transactions. Use in prohibited jurisdictions or consumer transactions may result in:

• Judgment being void and unenforceable
• Liability under consumer protection laws
• Professional discipline
• FDCPA violations (if debt collector)
• FTC Act violations

Execution Date: [DATE]
Principal Amount: $[PRINCIPAL AMOUNT]
Total Judgment Amount (including fees/costs): $[TOTAL AMOUNT]

PARTIES

CREDITOR/JUDGMENT PLAINTIFF:
[CREDITOR LEGAL NAME] ("Creditor")
[ADDRESS]
[CITY, STATE ZIP]

DEBTOR/CONFESSING DEFENDANT:
[DEBTOR LEGAL NAME] ("Debtor")
[ADDRESS]
[CITY, STATE ZIP]
☐ Individual ☐ Corporation ☐ LLC ☐ Partnership
[STATE OF ORGANIZATION, IF ENTITY]
[TAX ID/EIN: [NUMBER]]

COMMERCIAL TRANSACTION CERTIFICATION

The undersigned Debtor hereby certifies under penalty of perjury that:

☐ The debt that is the subject of this Confession of Judgment arose from a commercial or business transaction

☐ The debt was NOT incurred primarily for personal, family, or household purposes

☐ Debtor is:
☐ A business entity (corporation, LLC, partnership, etc.)
☐ An individual acting in a commercial/business capacity
☐ A guarantor of a commercial obligation

☐ This transaction involves:
☐ Commercial loan or line of credit
☐ Business equipment financing
☐ Commercial real estate
☐ Merchant cash advance
☐ Business-to-business accounts receivable
☐ Commercial lease
☐ Other commercial transaction: [DESCRIBE]

Nature of underlying commercial transaction: [DETAILED DESCRIPTION]

RECITALS

WHEREAS, Debtor is indebted to Creditor in connection with the commercial transaction described above;

WHEREAS, Debtor has defaulted on payment obligations or wishes to secure future payment obligations;

WHEREAS, the Parties desire to provide Creditor with an efficient remedy in the event of non-payment;

WHEREAS, Debtor voluntarily and with full knowledge of the legal consequences authorizes entry of judgment without trial;

NOW, THEREFORE, Debtor confesses judgment as follows:

ARTICLE 1: CONFESSION OF JUDGMENT

1.1 Authorization to Confess Judgment

Debtor hereby irrevocably authorizes and empowers any attorney admitted to practice in the State of [STATE] to appear for Debtor in any court of record in said state, or in any other state or jurisdiction where such confession is lawful, and to confess judgment against Debtor in favor of Creditor for the following amounts:

1.2 Waiver of Process and Defenses

Debtor hereby waives:

☐ Service of Process: Issuance and service of summons and complaint
☐ Notice: Prior notice of filing of confession of judgment
☐ Hearing: Right to a hearing before entry of judgment
☐ Trial: Right to trial by court or jury
☐ Appeal (of confession): Right to appeal entry of judgment by confession
☐ Stay of Execution: Right to stay of execution on the judgment
☐ Defenses: All defenses, setoffs, and counterclaims Debtor may have
☐ Errors: All errors in any proceeding to confess judgment

1.3 Authority of Attorney

The attorney confessing judgment need not be Debtor's attorney and may be Creditor's attorney or any other attorney. Debtor releases any such attorney from all liability for any act done pursuant to this authorization.

1.4 Multiple Confessions

This Confession of Judgment may be filed and judgment confessed as many times as necessary until Creditor has recovered the full amount owed plus all costs and fees.

ARTICLE 2: UNDERLYING OBLIGATION

2.1 Nature of Debt

This Confession of Judgment relates to the following underlying commercial obligation:

Type of Obligation:
☐ Promissory Note dated [DATE]
☐ Commercial Loan Agreement dated [DATE]
☐ Guaranty dated [DATE]
☐ Lease Agreement dated [DATE]
☐ Settlement Agreement dated [DATE]
☐ Other: [DESCRIBE]

Original Principal Amount: $[AMOUNT]
Current Balance Due: $[AMOUNT]
Interest Rate: [RATE]% per annum
Maturity Date: [DATE]

2.2 Default

☐ Debtor has defaulted on the underlying obligation by: [DESCRIBE DEFAULT]

☐ This Confession is being executed contemporaneously with the underlying obligation as security for future performance

ARTICLE 3: JUDGMENT TERMS

3.1 Interest on Judgment

The confessed judgment shall bear interest at the rate of:

☐ [RATE]% per annum (contractual rate)
☐ The statutory post-judgment interest rate in effect at the time of entry
☐ Other: [SPECIFY]

3.2 Additional Costs

Debtor agrees to pay all costs of filing and entering the confession of judgment, including but not limited to:

• Filing fees
• Sheriff's fees
• Recording fees
• Execution costs
• Post-judgment attorney fees

3.3 Continuing Liability

Entry of judgment by confession shall not extinguish any portion of the underlying debt not included in the judgment. Creditor reserves all rights to collect any deficiency.

ARTICLE 4: DEBTOR'S ACKNOWLEDGMENTS

4.1 Voluntary Execution

Debtor acknowledges and agrees that:

☐ Debtor has read and understands this entire document
☐ Debtor has had the opportunity to consult with independent legal counsel
☐ Debtor is executing this Confession of Judgment voluntarily, without duress or coercion
☐ Debtor understands that judgment may be entered without trial or hearing
☐ Debtor understands the serious legal consequences of this document
☐ No promises have been made to Debtor other than those contained in this document
☐ This transaction is commercial in nature and not for personal, family, or household purposes

4.2 Attorney Consultation

☐ Debtor has consulted with independent legal counsel regarding this Confession of Judgment

☐ Debtor has declined to consult with independent legal counsel and waives the right to do so

4.3 Capacity

If Debtor is an entity, the person signing on behalf of Debtor represents that they have full authority to bind the entity and to authorize this Confession of Judgment.

ARTICLE 5: STATE-SPECIFIC PROVISIONS

5.1 Pennsylvania Provisions (if applicable)

☐ PENNSYLVANIA ONLY: This instrument contains a confession of judgment. A judgment may be entered against you without a trial. If a judgment is entered against you, your wages, bank account, or other property may be taken to pay the judgment. You should consult an attorney.

5.2 Ohio Provisions (if applicable)

☐ OHIO ONLY: Warning - By signing this paper you give up your right to notice and court trial. If you do not pay on time a court judgment may be taken against you without your prior knowledge and the powers of a court can be used to collect from you regardless of any claims you may have against the creditor whether for returned goods, faulty goods, failure on his part to comply with the agreement, or any other cause.

5.3 Other State Provisions

☐ [STATE]: [INSERT REQUIRED STATE-SPECIFIC LANGUAGE]

ARTICLE 6: AFFIDAVIT OF CONFESSION

STATE OF [STATE]

COUNTY OF [COUNTY]

I, [DEBTOR NAME], being duly sworn, depose and say:

1. I am the Debtor named in the foregoing Confession of Judgment.

2. The statements made in this Confession of Judgment are true and correct to the best of my knowledge.

3. The debt described herein arose from a bona fide commercial transaction and was not incurred primarily for personal, family, or household purposes.

4. I am executing this Confession of Judgment voluntarily and with full understanding of its legal effect.

5. I authorize the entry of judgment against me as set forth above.

_______________________________________
[DEBTOR NAME]

Subscribed and sworn to before me this [DAY] day of [MONTH], [YEAR].

_______________________________________
Notary Public

My Commission Expires: _______________

[NOTARY SEAL]

ARTICLE 7: SIGNATURES

7.1 Debtor's Execution

DEBTOR:

WARNING: READ BEFORE SIGNING. BY SIGNING BELOW, YOU AUTHORIZE JUDGMENT TO BE ENTERED AGAINST YOU WITHOUT TRIAL.

Signature: ___________________________________ Date: _______________

Print Name: [DEBTOR NAME]

Title (if entity): ___________________________________

7.2 Witness (Recommended)

Witness Signature: ___________________________________ Date: _______________

Witness Print Name: ___________________________________

Witness Address: ___________________________________

7.3 Creditor's Acceptance

CREDITOR:

Signature: ___________________________________ Date: _______________

Print Name: ___________________________________

Title: ___________________________________

Company: [CREDITOR NAME]

ATTORNEY'S CERTIFICATE (For Use When Filing)

I, [ATTORNEY NAME], Esquire, an attorney licensed to practice in the State of [STATE], hereby certify that:

1. I have reviewed the foregoing Confession of Judgment.

2. I am authorized to confess judgment on behalf of [CREDITOR NAME] against [DEBTOR NAME].

3. The underlying debt arose from a commercial transaction.

4. To the best of my knowledge, this Confession of Judgment complies with all applicable laws and rules.

_______________________________________
[ATTORNEY NAME], Esquire
[BAR NUMBER]
[LAW FIRM NAME]
[ADDRESS]
[PHONE]

Date: _______________