Legal SOD Document

LEGAL SOD DOCUMENT

This Statement of Debt and Settlement Agreement (the Agreement) is entered into as of Effective Date: by and between Creditor Name: and Debtor Name: .

RECITALS

WHEREAS, Creditor asserts that Debtor is indebted to Creditor in respect of certain obligations and liabilities arising from the obligations described below (the Debt); and

WHEREAS, Debtor acknowledges the existence of the Debt and intends to settle and resolve the Debt with the terms set forth herein to avoid litigation and attendant costs; and

WHEREAS, the parties desire to memorialize the agreed settlement terms, including the payment schedule, release provisions, and related covenants, and intend that completion of the obligations set forth herein will constitute full settlement and discharge of the Debt as provided in this Agreement.

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

1. DEFINITIONS

For purposes of this Agreement, the following terms have the meanings set forth below:

"Debt" means the obligations owed by Debtor to Creditor in the principal amount of $ as described in the attached Debt Description, plus accrued interest, fees, and costs as permitted by this Agreement.

"Settlement Amount" means the aggregate amount set forth in Section 3 to be accepted by Creditor in full satisfaction of the Debt upon Debtor's timely performance.

2. STATEMENT OF DEBT

Debtor hereby acknowledges and admits that, as of Effective Date, Debtor owes Creditor the Debt as described in the attached statement. A concise description of the origin and nature of the Debt is provided below.

3. SETTLEMENT TERMS

3.1 Settlement Amount. Creditor agrees to accept, and Debtor agrees to pay, a Settlement Amount of $, subject to the payment schedule and conditions set forth in this Agreement.

3.2 Payment Schedule. Debtor shall pay the Settlement Amount according to the following schedule: Initial Payment of $ due on or before , followed by equal monthly installments of $ commencing on .

3.3 Payment Method. All payments shall be made by the method specified in Payment Instructions below or by another method agreed in writing. Payments are effective only when received and credited to Creditor's account.

4. DEFAULT; REMEDIES

If Debtor fails to make any payment when due and such failure continues for a period of days after notice from Creditor, Debtor shall be in default. Upon default, Creditor may, at its option, declare the entire unpaid balance immediately due and payable and pursue all remedies available at law or in equity, including collection costs and reasonable attorneys' fees.

Interest on unpaid amounts shall accrue at the rate of per annum from the date of default, to the extent permitted by applicable law.

5. RELEASE

Upon Creditor's receipt of the total Settlement Amount in accordance with this Agreement, Creditor shall release and forever discharge Debtor from all claims, demands, actions and causes of action, whether known or unknown, arising out of or relating to the Debt through Effective Date, except as expressly reserved in this Agreement.

The release granted herein shall not apply to: (a) obligations arising from false representations; (b) amounts subsequently awarded for fraud or willful misconduct; or (c) any claims for amounts expressly excluded by written schedule attached to this Agreement.

6. SETOFF AND SECURITY

Debtor represents whether the Debt is: Secured Unsecured .

Creditor retains all existing liens and security interests only to the extent expressly set forth in a separate written security agreement. Creditor may exercise any rights of setoff or recoupment permitted by law.

7. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it is duly authorized to enter into this Agreement, that the execution and performance of this Agreement does not violate any other agreement to which it is a party, and that the individual signing on its behalf has full authority to bind such party.

8. CONFIDENTIALITY

The parties agree that the existence, terms, and conditions of this Agreement shall be kept confidential and shall not be disclosed to any third party except to legal counsel, accountants, or as required by operation of law or court order. Any permitted disclosure shall be limited to the minimum information necessary.

9. NOTICES

All notices and communications required or permitted under this Agreement shall be in writing and delivered to the addresses below by personal delivery, certified mail (return receipt requested), or overnight courier and shall be effective upon receipt.

10. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of laws principles. The parties submit to the exclusive jurisdiction of the courts located in that State for resolution of disputes arising under this Agreement.

11. ENTIRE AGREEMENT; SEVERABILITY; AMENDMENT; WAIVER

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, whether written or oral. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. No amendment or modification shall be effective unless in writing and signed by both parties. No waiver of any breach shall be effective unless in writing and signed by the waiving party.

12. COUNTERPARTS

This Agreement may be executed in counterparts, each of which when executed and delivered shall be an original, but all counterparts together shall constitute one and the same instrument. Signatures delivered electronically or by facsimile shall be deemed originals for all purposes.

13. ADDITIONAL PROVISIONS

Sign Now