Deferral Agreement: Definition, Terms, Example
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What is a Deferral Agreement?
A deferral agreement is a contract between a lender and company that sets the terms and conditions of an agreed-upon payment deferral. The contract terms include details about how much the payment is, when the new due date is, and what fees might apply for the deferral. The agreement is useful to give business owners more time to come up with a required payment without risking violating the terms of the agreement.
The deferral agreement offers an easy and convenient way for lenders and borrowers to come to an agreement surrounding modifying the terms of the original contract.
Common Sections in Deferral Agreements
Below is a list of common sections included in Deferral Agreements. These sections are linked to the below sample agreement for you to explore.
Deferral Agreement Sample
AMENDING AGREEMENT OF
AGREEMENT TO DEFER PAYMENT OF DEBT
This Agreement made effective the 1st day of July, 2015.
BETWEEN:
CMX GOLD & SILVER CORP., a corporation incorporated under the laws of the Province of Alberta and having its head office in Calgary, Alberta (the “Corporation”)
- and -
BRINKTON CORPORATION, a corporation incorporated under the laws of Alberta having an office in Calgary, Alberta; RANDAL SQUIRES, a resident of Novato, California; and GLEN ALSTON, a resident of Calgary, Alberta (the “Creditors”)
WHEREAS the Creditors and the Corporation entered into an Agreement to Defer Payment of Debt dated September 30, 2013 (the “Deferral Agreement”) wherein the Creditors agreed to the deferral until July 1, 2015 of payment of advances and fees for work for the Corporation of $282,176;
AND WHEREAS pursuant to the Deferral Agreement a total of $274,198 remained outstanding as at September 30, 2014, and the Creditors further agreed under an Amending Agreement dated September 30, 2014 to the deferral of payment until July 1, 2016;
AND WHEREAS pursuant to the Deferral Agreement and Amending Agreement additional interest and fees have accrued to July 30, 2015 on the Debt in the amount of $32,275 such that the total amount owed as of the date hereof by the Corporation to the Creditors is $306,473 (the “Current Debt”);
AND WHEREAS for consideration received, the Creditors have agreed to extend the payment date by the Corporation of the balance of the Current Debt by one year to July 1, 2017 in accordance with the terms of this Agreement;
NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties agree as follows:
1.
Agreement to Defer Payment of Current Debt. Subject to the terms and conditions set forth in this Agreement and the Deferral Agreement, the Creditors hereby acknowledge and agree that the obligation of the Corporation to pay any outstanding balance of the Current Debt is deferred to July 1, 2017, and the Deferral Agreement is hereby amended to reflect the new payment date.
2.
Interest on Debt. The Corporation shall pay simple interest on the Current Debt, or any portion thereof outstanding, at the rate of six percent (6%) per annum from July 1, 2015 until payment in full.
3.
Representations, Warranties and Covenants of the Creditor. The Creditors agrees that the representations, warranties and covenants made by it in the Deferral Agreement remain in full force and effect, except as modified by this Agreement.
4.
Representations and Warranties of the Corporation. The Corporation agrees that the representations, warranties and covenants made by it in the Deferral Agreement remain in full force and effect, except as modified by this Agreement and the Corporation hereby specifically confirms its covenant to use its best efforts to raise additional funds to pay the Current Debt before July 1, 2017.
5.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta and the federal laws of Canada applicable therein. The parties irrevocably attorn to the exclusive jurisdiction of the courts of the Province of Alberta.
6.
Entire Agreement. This Agreement and the Deferral Agreement represent the entire agreement of the parties hereto relating to the subject matter hereof, and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein.
7.
Counterpart. This Agreement may be executed in one or more counterparts each of which so executed shall constitute an original and all of which together shall constitute one and the same agreement. The Corporation shall be entitled to rely on delivery of an electronic or facsimile executed copy of this Agreement, and acceptance by the Corporation of such electronic or facsimile copy shall be legally effective to create a valid and binding agreement between the Creditors and the Corporation in accordance with the terms hereof.
8.
Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity, legality or enforceability of any other provision hereof.
9.
Survival. The covenants, representations and warranties contained in this Agreement shall survive the closing of the transactions contemplated hereby, and shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.
- 2 -
(this is the signature page to an Amending Agreement made effective the 1st day of July, 2015)
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first written above.
CMX GOLD & SILVER CORP.
“Jan M. Alston”
Per:
Name: Jan Alston
Title: President
BRINKTON CORPORATION
“Lossie C. Alston”
Per:
Name: Lossie Alston
Title: President
RANDAL SQUIRES
“Randal Squires”
GLEN ALSTON
“Glen R. Alston”
- 3 -
Reference:
Security Exchange Commission - Edgar Database, EX1A-15 ADD EXHB 9 cmx_ex10z2.htm DEFERRAL AMENDING AGREEMENT, Viewed October 24, 2022, View Source on SEC.
Who Helps With Deferral Agreements?
Lawyers with backgrounds working on deferral agreements work with clients to help. Do you need help with a deferral agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate deferral agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Deferral Agreement Lawyers
Benjamin M.
Ben is the founder of the Middleton Law Firm (2022). He has experience in the European Union and the United States. He interned with the University Rijeka, Croatia assisting businesses with trademark, Uniform Domain-Name Registry Dispute Registry, European General Data Protection Regulation (GDPR) privacy law compliance, and International Comparative Copyright issues as the country itself prepared itself for European Union statehood. He worked with Michigan State University's Anti-Counterfeit and Product Protection (A-CAPP) Center to protect and enforce its intellectual property in foreign territories and moderated panel discussions with brand owners and U.S. Customs to curb counterfeit products. Ben assisted indigent artists with legal issues and in some cases brought their works to life with Georgia Lawyers for the Arts. Ben is admitted to the federal courts of Georgia. Before practicing law, Ben worked for Core Security and Meridian Link as a software QA engineer in the information technology (IT) space. Ben produced countless commercial music recordings, engineered hundreds of songs, and served as executive producer seven studio albums as a founding member of member of Million Dollar Minds Entertainment (Est. 2006). He is an alumnus of The South Carolina State University (Bulldogs) and Michigan State University (Spartans).
"Benjamin did an excellent Job assisting me in this matter and I would highly recommend him to anyone needing the same service I received for the Cease & Desist"
Morgan S.
Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.
"Morgan was very detailed in his response and explanations. He showed me red flags, potential solutions, and where problems may occur. He explained some high risk clauses that did not make sense and I should not accept. Overall, Morgan saved me from bad business deal when I flagged his concerns to the counterparty. Thanks Morgan!"
Esra A.
My firm focuses on family immigration (spouse, parents, children and siblings of US citizens and permanent residents), change of status, and citizenship applications.
July 31, 2023
Joeie S.
Attorney Skelly is a midwestern transplant from Iowa. She has been in Florida for the past 11 years. She went to undergrad at Buena Vista University, which is a small liberal arts college in Storm Lake, Iowa. After graduating with her Bachelor's degree in criminal justice, she went on to obtain her Master's degree in criminal justice from Kaplan university, which is now Purdue Global. While attending school full time for her Master’s degree, Attorney Skelly worked full time in social services helping children and their families who were involved in the dependency system. Attorney Skelly has a professional background in child welfare and social services having worked for 18 years in the field. Attorney Skelly always had a lifelong dream of becoming a lawyer and decided to fulfill her goal in May of 2019 by starting law school at Western Michigan University Thomas M. Cooley Law School at their Riverview campus. She did their accelerated program and completed law school in just over two years and graduated magna cum laude with honors. Attorney Skelly also received certificate of merit awards, which means attaining the highest grade in the class in secured transactions, research and writing, and family violence practice. While in law school Attorney Skelly was a teaching assistant to two tenured professors as well as a note taker for those students who had accommodations. She was also awarded the Alumni Association’s Distinguished Student Award. In her legal career, Attorney Skelly started out at the State Attorney’s Office in Fort Myers, FL. She helped prosecute several cases and personally worked as second chair on 9 jury trials and one bench trial. Once Attorney Skelly passed the bar, she worked for a family law firm under a board certified marital and family law practitioner where she gained tremendous knowledge in the area of family law which includes divorce, paternity, child custody/parenting plans, alimony and child support as well as domestic relations issues such as domestic violence injunctions. Attorney Skelly is also certified as a Guardian ad Litem and can serve as a Guardian ad Litem in family court cases. Attorney Skelly is a proud member of the Florida Bar, the Lee County Bar Association, and the American Bar Association.
July 31, 2023
Daniel W.
In my thirteen years of practice, I've had the opportunity to argue cases in state, federal, and tribal courts; in subjects as diverse as gaming, land tenure, water rights, treaty rights, finance, employment, criminal defense, conflict of laws, and tort (among others). But the real value I brought my clients came through avoiding litigation, fostering relationships, and developing long-term strategies.
August 1, 2023
Christopher I.
• Owner and managing attorney at the Irak Law Office in Indiana. • Practice areas include business law, startup formation, contract drafting, and deal structuring. • Passionate about serving entrepreneurs and small business owners. For more, visit https://iraklaw.com
Christi D.
August 1, 2023
Christi D.
Attorney.
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