Debt Consolidation Agreement

DEBT CONSOLIDATION AGREEMENT

This Debt Consolidation Agreement (the "Agreement") is made and entered into as of , by and between Lender Name: with principal address , and Debtor Name: with principal address .

RECITALS

WHEREAS, Debtor is presently indebted to one or more creditors for various obligations described in the schedule of debts to be consolidated; and

WHEREAS, Lender is willing to advance funds or otherwise assume responsibility to consolidate such debts subject to the terms and conditions set forth in this Agreement; and

WHEREAS, the parties desire to set forth the terms on which Debtor's existing obligations shall be consolidated into a single consolidated obligation payable to Lender.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. DEFINITIONS

As used in this Agreement, the following terms have the meanings set forth below:

"Consolidated Debt" means the aggregate of the existing debts and obligations described in the Schedule of Debts completed by Debtor in Section 2 and any fees, costs, interest and charges permitted under this Agreement.

"Effective Date" means the date specified above in the opening paragraph.

2. DEBTS TO BE CONSOLIDATED

Debtor hereby provides a true and complete list of existing debts to be consolidated, including creditor name, outstanding balance, account number and any applicable interest rates or fees. Debtor represents that the list is complete and accurate as of the Effective Date.

3. CONSOLIDATION AND ADVANCE

Subject to the terms and conditions of this Agreement, Lender agrees to advance or otherwise pay to or for the benefit of Debtor or Debtor's creditors the principal sum equal to the Consolidated Loan Amount, which shall be applied to satisfy, refinance, or consolidate the debts set forth in the Schedule of Debts.

Upon funding of the Consolidated Loan Amount, Debtor authorizes Lender to apply such funds to the outstanding balances of the creditors listed in the Schedule of Debts. Debtor consents to Lender receiving account information necessary to effect payoff and consolidation.

4. LOAN TERMS

The Consolidated Loan shall bear interest at the fixed rate of per annum, computed on the basis of a 365-day year and actual days elapsed, unless otherwise set forth below. Interest shall accrue from the date funds are applied to the Debtor's creditors.

Payments shall be due monthly in arrears on the same numerical day of each month thereafter until the Consolidated Loan and accrued interest, fees and costs are paid in full. Lender shall provide an amortization schedule within thirty (30) days after funding.

5. SECURITY

The Consolidated Loan shall be: Unsecured    Secured by collateral described below

6. FEES, COSTS AND DEFAULT INTEREST

Debtor shall pay an origination fee of and a late payment fee of for any payment more than days past due. Upon default, interest shall accrue at a default rate of .

7. REPRESENTATIONS AND WARRANTIES

Debtor represents and warrants that (a) the information provided in the Schedule of Debts is true, complete and accurate; (b) Debtor has full power and authority to enter into this Agreement; and (c) the execution, delivery and performance of this Agreement will not violate any other agreement, law or court order to which Debtor is subject.

Lender represents and warrants that it has the authority to fund the Consolidated Loan and that it will apply funds in accordance with this Agreement.

8. EVENTS OF DEFAULT; REMEDIES

The occurrence of any of the following shall constitute an Event of Default: (a) failure to make any scheduled payment within the applicable grace period; (b) Debtor's insolvency, bankruptcy, or appointment of a receiver for Debtor's assets; or (c) material breach of any covenant, representation, or warranty in this Agreement. Upon Event of Default, Lender may declare the entire unpaid principal, accrued interest, fees and costs immediately due and payable, and exercise any remedies available at law or in equity, including collection and foreclosure if applicable.

Debtor shall reimburse Lender for reasonable costs of collection, including attorneys' fees and court costs, in the event of default.

9. PREPAYMENT

Debtor may prepay the Consolidated Loan in whole or in part at any time without premium or penalty unless a prepayment fee is specified below.

10. NOTICES

All notices, demands, requests and consents required or permitted hereunder shall be in writing and shall be delivered to the addresses set forth below by overnight courier, certified mail, or personal delivery and shall be effective upon receipt.

11. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

12. ENTIRE AGREEMENT; SEVERABILITY; AMENDMENT; WAIVER; COUNTERPARTS

This Agreement, including the Schedule of Debts and any promissory note, security agreement or other documents executed in connection herewith, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior negotiations, agreements and understandings between the parties. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. No amendment, modification or waiver shall be effective unless in a writing signed by both parties. No waiver by either party of any breach shall constitute a waiver of any other breach. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

13. MISCELLANEOUS PROVISIONS

a) Assignment: Lender may assign or transfer its rights under this Agreement without Debtor's prior consent; provided, however, that any such assignee shall be bound by the terms hereof. Debtor may not assign its obligations without Lender's prior written consent.

b) Remedies Cumulative: The remedies provided in this Agreement are cumulative and in addition to any other remedies available at law or in equity.

c) Interpretation: Headings are for convenience only and shall not affect interpretation. Unless the context otherwise requires, words in the singular include the plural and vice versa.

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