Default Letter

Summary

This default letter precedent is for use by a secured creditor to send to its borrower after a default under a loan agreement. This precedent includes practical guidance and drafting notes. Detailed Summary: Before beginning to prepare the actual letter, all the relevant loan documents must be reviewed to determine how to reference them in the letter and how to proceed, including to determine who should receive the letter and in what manner. This precedent should be adapted to specify the defaults that have occurred, what remedies may be exercised, and other actions that the secured creditor will take, as well as to fill in the other information in the blanks and the brackets. The letter should not include any reference to actions that will be taken unless the secured creditor will take such action. Related Content: For additional information, see Events of Default in a Loan Agreement, Event of Default Provisions, and Loan Agreement Remedies Checklist. For information applicable to ...