Finance Termination Agreement

FINANCE TERMINATION AGREEMENT

ANALYSIS

Document type: A bilateral termination and settlement agreement that effects the lawful termination of an outstanding finance arrangement between a lender and a borrower, sets final accounting, memorializes releases, and establishes any final payment or lien release obligations.

Typical sections included: identifying information for each party, recitals describing the original finance agreement, defined effective date, itemized settlement accounting (principal, interest, fees, payments, settlement amount), payment terms and instructions, release and lien-release clauses, representations and warranties, confidentiality, notices, governing law, and execution/signature block for both parties.

Parties required to sign: Two parties (Lender and Borrower). Signature dates are required as formal execution dates. The form includes substantive legal clauses to effect termination, mutual release, and lien release if applicable.

PARTIES AND CONTACT INFORMATION

RECITALS

This Finance Termination Agreement (the Agreement) is entered into on , (the Effective Date), by and between the parties named above.

WHEREAS, Lender and Borrower entered into a finance agreement identified as dated , and referenced by ;

TERMS OF TERMINATION

1. Termination. Effective as of the Effective Date, the Original Agreement and all obligations thereunder are hereby terminated and the parties agree the final accounting set forth below constitutes the final and complete settlement of all amounts arising from that Original Agreement except as expressly reserved herein.

FINAL ACCOUNTING

SECURITY INTEREST / LIEN RELEASE

Does the Lender agree to release any security interest or lien securing the Original Agreement? Yes

RELEASE AND MUTUAL WAIVER

Upon receipt by Lender of the Settlement Amount in accordance with the Payment Terms, Lender will release and forever discharge Borrower from all claims, liabilities, and obligations related to the Original Agreement to the extent set forth herein. Borrower, in consideration of the same, releases Lender from any and all claims relating to the Original Agreement except those expressly reserved in this Agreement.

Mutual release executed: Acknowledged

REPRESENTATIONS, WARRANTIES & COVENANTS

Each party represents and warrants that it has full power and authority to enter into and perform this Agreement, that execution has been duly authorized, and that this Agreement is binding and enforceable. Each party covenants to execute such further instruments and take such actions as are reasonably necessary to effectuate the terms hereof, including filing or releasing financing statements where required.

CONFIDENTIALITY

The parties agree to keep the terms of this Agreement confidential except as required by law or to effectuate the terms hereof. Neither party will disclose settlement amounts or other confidential information except to their respective professional advisors who are bound by confidentiality.

NOTICES

GOVERNING LAW

This Agreement will be governed by and construed in accordance with the laws of without regard to conflict of law principles.

MISCELLANEOUS

Entire Agreement: This Agreement contains the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements and understandings. Any amendment must be in writing and signed by both parties. If any provision is deemed invalid, the remaining provisions shall remain effective.

CERTIFICATION

Each signatory below certifies under penalty of perjury that they are authorized to execute this Agreement on behalf of the party for whom they sign, that the facts set forth in this Agreement are true and correct to the best of their knowledge, and that execution of this Agreement will bind their respective party to its terms.

Sign Now