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SAMPLE Debt Assignment and Assumption With Release

This document is a sample agreement for the assignment and assumption of debt between Jon Smith (Debtor), Best Business Loans Inc. (Assuming Party), and Capital Equity Partners LLC (Creditor). The Assuming Party agrees to assume the entire $150,000 debt from the Debtor. The agreement will be valid only if the Creditor consents within 10 days. The Assuming Party takes on legal and financial liability for the debt and agrees to pay $5,000 to purchase the debt from the Debtor, who is released from all liability. The agreement is governed by California law.

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471 views

SAMPLE Debt Assignment and Assumption With Release

This document is a sample agreement for the assignment and assumption of debt between Jon Smith (Debtor), Best Business Loans Inc. (Assuming Party), and Capital Equity Partners LLC (Creditor). The Assuming Party agrees to assume the entire $150,000 debt from the Debtor. The agreement will be valid only if the Creditor consents within 10 days. The Assuming Party takes on legal and financial liability for the debt and agrees to pay $5,000 to purchase the debt from the Debtor, who is released from all liability. The agreement is governed by California law.

Uploaded by

rOSE
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SAMPLE ASSIGNMENT AND ASSUMPTION OF DEBT

I. THE PARTIES. This Assignment and Assumption of Debt with Release (“Agreement”)
is effective and created on September 15th, 2021 (“Effective Date”) is by and between:

Debtor: Jon Smith, with a mailing address of 100 S Broadway, Los Angeles, CA
90012 (“Debtor”),

Assuming Party: Best Business Loans Inc., with a mailing address of 2200 W
Pico Blvd, Los Angeles, CA 90019 (“Assuming Party”),

Creditor: Capital Equity Partners LLC, with a mailing address of 5500 Wilshire
Blvd, Los Angeles, CA 90036 (“Creditor”),

The Debtor, Assuming Party, and Creditor shall each be referred to herein as a “Party”
and collectively as the “Parties.”

II. ASSIGNMENT OF DEBT. It is known that the Debtor is indebted to the Creditor,
under a separate agreement, for the current principal sum of $150,000.00, plus any
interest (“Debt”).

Under this Agreement, the Assuming Party agrees to assume: (choose one)

☒ - All of the Debt.

☐ - Portion of the Debt. The Assuming Party agrees to assume $[PORTION OF


DEBT AMOUNT].

The Debt shall continue its repayment in accordance with the terms located in a
separate agreement between the Debtor and Creditor.

III. CONSENT FROM CREDITOR. For this Agreement to be legally valid: (choose one)

☒ - Consent is Required from the Creditor. This Agreement is contingent upon


the Creditor approving and consenting to its terms and conditions. The Creditor
shall be required to grant their consent within 10 days of the Effective Date. If the
Creditor does not consent or rejects this Agreement, it shall be considered void.

☐ - Consent is Not Required from the Creditor. This Agreement is not contingent
upon the Creditor to approve its terms and conditions.

IV. ASSUMPTION OF LIABILITIES. The Assuming Party agrees to assume the Debt,
which may or may not include, further legal or financial liability. If the Debtor is subject
to legal or financial liability, the Assuming Party shall assume its liability, including but
not limited to, attorney’s fees and damages.

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V. DEBTOR’S RELEASE. This Agreement shall release the Debtor from all liabilities in
relation to the Debt, the Creditor, and the Assuming Party.

VI. SEVERABILITY. If any term, covenant, condition, or provision of this Agreement is


held by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of the provisions shall remain in full force and effect and shall in no way be
affected, impaired, or invalidated.

VII. PARTIES’ REPRESENTATIONS. This Agreement can be considered void, at any


time, if evidence is presented that any Party was not honest, untruthful, or did not
negotiate in good faith (“Fraudulent Practices”). Furthermore, if any Party’s actions are
considered Fraudulent Practices, they may be subject to legal and financial penalties to
the fullest of the law.

VIII. GOVERNING LAW. This Agreement shall be governed under the laws located in
the State of California (“Governing Law”).

IX. ADDITIONAL TERMS. Per a separate agreement, the Assuming Party agrees to
pay $5,000.00 for the purchase of this Debt.

X. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement between


the Parties. No modification or amendment of this Agreement shall be effective unless
in writing and signed by both Parties.

Debtor Signature: ______________________________ Date 09-15-21

Print Name: Jon Smith

Assuming Party Signature: ______________________________ Date 09-15-21

Print Name: Henry Johnson of Best Business Loans Inc.

Creditor Signature (if required): ______________________________ Date 09-15-21

Print Name: Frank Kissinger of Capital Equity Partners LLC

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