Use this template to prepare a
Standstill Agreement between a borrower (a land developer) and a lender with respect to outstanding loan obligations.
- The lender agrees to "stand still" on the recovery of the indebtedness due from the borrower for the time being, in return for which the borrower agrees to provide the lender further security for its indebtedness, including a foreclosure order on properties under development, which have been mortgaged by the borrower to the lender.
- The borrower agrees to assign to the lender the proceeds from the sale of lots in the development.
- Each payment made by the borrower will entitle the borrower to an extension of thirty days to repay the indebtedness (to a maximum of 2 extensions).
- The status of the financing and the borrower's financial situation will be reviewed monthly by the lender.
This
Standstill Agreement template is provided in MS Word format and is fully editable to fit your circumstances.
