(Bankruptcy, Loan and Other Debt Workouts)


This waiver form is executed between a borrower and its lender. Waiver agreements are generally used when a company experiencing financial difficulties commits a one-time covenant breach that the lender determines will not materially prejudice its ability to receive payment on the loan. This form includes practical guidance and drafting notes. A waiver agreement specifies the default or event of default that occurred under the loan agreement and provides that the lender agrees to waive the specified default and not to pursue its rights and remedies against the borrower. As part of the waiver, the lender may require the inclusion of various provisions designed to protect its interests. A waiver by the lender of a default or event of default will allow the relationship between the lender and the company to continue unimpeded despite the occurrence of a default under the agreement. For more information, see Loan Workouts and Exchange Offers — Waivers. For an alternate version, see Waiver ...