Loan Modification Agreement

LOAN MODIFICATION AGREEMENT

(Amendment to Existing Loan Terms)

Effective Date: [DATE]
Original Loan Date: [DATE]
Original Loan Amount: $[AMOUNT]
Current Outstanding Balance: $[AMOUNT]
Modification Number: [NUMBER]

PARTIES

This Loan Modification Agreement ("Agreement" or "Modification") is entered into as of [EFFECTIVE DATE] by and between:

LENDER:

BORROWER:

GUARANTOR(S) (If Applicable):

RECITALS

A. Lender and Borrower entered into that certain [Loan Agreement/Promissory Note] dated [ORIGINAL DATE] in the original principal amount of $[ORIGINAL AMOUNT] (the "Original Loan"), as evidenced by the following documents (collectively, the "Loan Documents"):

☐ Loan Agreement dated [DATE]
☐ Promissory Note dated [DATE]
☐ Security Agreement dated [DATE]
☐ UCC Financing Statement filed [DATE]
☐ Deed of Trust/Mortgage recorded [DATE] in [COUNTY]
☐ Guaranty dated [DATE] executed by [GUARANTOR(S)]
☐ Other: [DESCRIBE]

B. As of the date hereof, the outstanding balance of the Loan is $[CURRENT BALANCE], consisting of:

• Principal: $[AMOUNT]
• Accrued Interest: $[AMOUNT]
• Fees/Costs: $[AMOUNT]

C. Borrower has requested, and Lender has agreed, to modify certain terms of the Loan as set forth herein.

D. The parties wish to amend the Loan Documents to reflect such modifications.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

ARTICLE 1: INCORPORATION AND ACKNOWLEDGMENT

1.1 Incorporation

The Recitals are incorporated into this Agreement by reference.

1.2 Acknowledgment of Debt

Borrower acknowledges and agrees:

(a) The outstanding balance of the Loan as of [DATE] is $[AMOUNT], which amount is correctly stated and is unconditionally owed to Lender;

(b) Borrower has no defenses, offsets, counterclaims, or claims against Lender with respect to the Loan or the Loan Documents;

(c) All representations and warranties in the Loan Documents remain true and correct.

ARTICLE 2: MODIFICATIONS

2.1 Summary of Modifications

The Loan Documents are hereby modified as follows (check all that apply):

☐ Principal Balance Adjustment (Section 2.2)
☐ Interest Rate Modification (Section 2.3)
☐ Maturity Date Extension (Section 2.4)
☐ Payment Schedule Modification (Section 2.5)
☐ Collateral Modification (Section 2.6)
☐ Covenant Modification (Section 2.7)
☐ Fee Adjustment (Section 2.8)
☐ Other Modifications (Section 2.9)

2.2 Principal Balance Adjustment

☐ Not Applicable (skip this section)

☐ Applicable: The principal balance is modified as follows:

Reason for Adjustment:
☐ Additional advance of $[AMOUNT]
☐ Capitalization of accrued interest of $[AMOUNT]
☐ Capitalization of fees/costs of $[AMOUNT]
☐ Principal reduction/forgiveness of $[AMOUNT]
☐ Other: [DESCRIBE]

2.3 Interest Rate Modification

☐ Not Applicable (skip this section)

☐ Applicable: The interest rate is modified as follows:

Rate Type:
☐ Fixed Rate: [PERCENTAGE]% per annum
☐ Variable Rate: [INDEX] plus [MARGIN]%

• Current Rate: [PERCENTAGE]%
• Rate Floor: [PERCENTAGE]%
• Rate Cap: [PERCENTAGE]%

Effective Date of New Rate: [DATE]

2.4 Maturity Date Extension

☐ Not Applicable (skip this section)

☐ Applicable: The Maturity Date is modified as follows:

2.5 Payment Schedule Modification

☐ Not Applicable (skip this section)

☐ Applicable: The payment schedule is modified as follows:

Previous Payment Terms:

• Payment Amount: $[AMOUNT]
• Payment Frequency: [MONTHLY/QUARTERLY/OTHER]
• Next Payment Due: [DATE]

New Payment Terms:

• Payment Amount: $[AMOUNT]
• Payment Frequency: [MONTHLY/QUARTERLY/OTHER]
• First Modified Payment Due: [DATE]
• Remaining Number of Payments: [NUMBER]

Payment Structure (Select One):

☐ Fully Amortizing: [NUMBER] payments of $[AMOUNT]

☐ Interest-Only for [PERIOD]: Interest-only payments of $[AMOUNT] from [START DATE] through [END DATE], then amortizing payments of $[AMOUNT]

☐ Reduced Payments for [PERIOD]: Temporarily reduced payments of $[AMOUNT] from [START DATE] through [END DATE], then resuming regular payments of $[AMOUNT]

☐ Balloon Payment: Periodic payments of $[AMOUNT] with balloon payment of $[AMOUNT] due on [DATE]

☐ Custom Schedule: Per the Payment Schedule attached as Exhibit A

2.6 Collateral Modification

☐ Not Applicable (skip this section)

☐ Applicable: The Collateral is modified as follows:

☐ Additional Collateral: The following additional collateral is pledged to secure the Loan:
[DESCRIBE ADDITIONAL COLLATERAL]

☐ Additional Security Agreement attached
☐ Additional UCC-1 Financing Statement to be filed
☐ Additional Deed of Trust/Mortgage to be recorded

☐ Release of Collateral: The following collateral is released from the Loan:
[DESCRIBE RELEASED COLLATERAL]

Conditions for release: [DESCRIBE CONDITIONS]

☐ Substitution of Collateral: The following collateral is released:
[DESCRIBE RELEASED COLLATERAL]

And the following collateral is substituted:
[DESCRIBE SUBSTITUTED COLLATERAL]

2.7 Covenant Modification

☐ Not Applicable (skip this section)

☐ Applicable: The following covenants are modified:

2.8 Fee Adjustment

☐ Not Applicable (skip this section)

☐ Applicable: The following fees apply to this Modification:

Fee Payment:
☐ Due at execution of this Agreement
☐ Added to principal balance
☐ Paid from escrow
☐ Other: [DESCRIBE]

2.9 Other Modifications

☐ Not Applicable (skip this section)

☐ Applicable: The following additional modifications apply:

[DESCRIBE OTHER MODIFICATIONS]

ARTICLE 3: CONDITIONS PRECEDENT

This Modification shall not be effective until:

☐ Execution of this Agreement by all parties
☐ Payment of all fees due hereunder
☐ Execution of Guarantor Consent and Reaffirmation (Exhibit B)
☐ Delivery of updated insurance certificates
☐ Recording of modification documents (if real property secured)
☐ Filing of UCC amendment (if applicable)
☐ Delivery of updated financial statements
☐ Delivery of [OTHER DOCUMENTS]
☐ Cure of existing defaults (if any)
☐ Other: [DESCRIBE]

ARTICLE 4: REAFFIRMATION

4.1 Reaffirmation of Loan Documents

Except as expressly modified herein, all terms, conditions, covenants, and provisions of the Loan Documents remain in full force and effect and are hereby ratified and confirmed. The Loan Documents, as modified by this Agreement, constitute the entire agreement between the parties regarding the Loan.

4.2 Reaffirmation of Security Interest

The security interest(s) granted under the Loan Documents remain in full force and effect and continue to secure all Obligations under the Loan, as modified. Borrower reaffirms and ratifies such security interest(s).

4.3 Reaffirmation of Representations and Warranties

Borrower reaffirms all representations and warranties contained in the Loan Documents, which are true and correct as of the date hereof.

ARTICLE 5: BORROWER REPRESENTATIONS

Borrower represents and warrants:

(a) All information provided to Lender in connection with this Modification is true and complete;

(b) No Event of Default exists under the Loan Documents (after giving effect to any cure or waiver contemplated herein);

(c) Borrower has the authority to execute this Agreement;

(d) This Agreement constitutes a valid and binding obligation of Borrower;

(e) There has been no Material Adverse Change in Borrower's financial condition since [DATE];

(f) Borrower is not insolvent and this Modification will not render Borrower insolvent.

ARTICLE 6: NO WAIVER; RELEASE

6.1 No Waiver of Defaults

Except as expressly provided herein, this Modification does not waive any existing or future defaults under the Loan Documents.

6.2 Borrower Release

Borrower, for itself and its successors and assigns, hereby releases and forever discharges Lender and its affiliates, officers, directors, employees, and agents from any and all claims, causes of action, and demands of any kind arising out of or related to the Loan or the Loan Documents as of the date hereof.

ARTICLE 7: TRUTH IN LENDING ACT (CONSUMER LOANS)

☐ Not Applicable - Business Purpose Loan: This Loan is for business, commercial, investment, or agricultural purposes and is exempt from TILA.

☐ Applicable - Consumer Loan: New TILA disclosures are attached as Exhibit C, including:

• Annual Percentage Rate (APR): [PERCENTAGE]%
• Finance Charge: $[AMOUNT]
• Amount Financed: $[AMOUNT]
• Total of Payments: $[AMOUNT]

ARTICLE 8: GENERAL PROVISIONS

8.1 Governing Law

This Agreement shall be governed by the laws of [GOVERNING LAW STATE].

8.2 Counterparts; Electronic Signatures

This Agreement may be executed in counterparts. Electronic signatures are valid.

8.3 Severability

Invalid provisions shall be modified; the remainder continues in force.

8.4 Successors

This Agreement binds and benefits the parties and their successors.

8.5 Entire Agreement

This Agreement, together with the Loan Documents, constitutes the entire agreement regarding the Loan as modified.

8.6 Conflict

In the event of any conflict between this Agreement and the Loan Documents, this Agreement controls.

8.7 Recording

If the Loan is secured by real property, this Agreement or a memorandum hereof shall be recorded in the land records of [COUNTY].

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Loan Modification Agreement as of the Effective Date.

LENDER:

[LENDER NAME]

By: _________________________________

Name: [NAME]

Title: [TITLE]

Date: ___________

BORROWER:

If Individual:

Signature: _________________________________

Printed Name: [NAME]

Date: ___________

If Entity:

[BORROWER NAME]

By: _________________________________

Name: [NAME]

Title: [TITLE]

Date: ___________

EXHIBIT A: MODIFIED PAYMENT SCHEDULE

EXHIBIT B: GUARANTOR CONSENT AND REAFFIRMATION

The undersigned Guarantor(s), having executed a Guaranty dated [DATE] in connection with the Loan, hereby:

1. Consent: Consent to the modifications set forth in this Agreement;

2. Reaffirmation: Reaffirm the Guaranty and all obligations thereunder, which remain in full force and effect;

3. Acknowledgment: Acknowledge that the Guaranty covers the Loan as modified by this Agreement;

4. Waiver: Waive any defense to the Guaranty that may arise from this Modification;

5. Release: Release Lender from any claims arising from the Loan or this Modification.

GUARANTOR 1:

Signature: _________________________________

Printed Name: [GUARANTOR NAME]

Date: ___________

GUARANTOR 2:

Signature: _________________________________

Printed Name: [GUARANTOR NAME]

Date: ___________

COMPLIANCE CHECKLIST

☐ All modifications clearly stated
☐ Consideration for modification exists
☐ Guarantor consent obtained (if applicable)
☐ New TILA disclosures provided (if consumer loan)
☐ Security agreement amendment filed (if collateral modified)
☐ Deed of Trust/Mortgage modification recorded (if real property)
☐ Insurance updated
☐ Legal counsel review completed

Prepared for professional use. Verify all terms and regulatory requirements before execution.