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Past Due Payment Arrangement Agreement Template for United States

A legally binding document governed by U.S. federal and state laws that establishes a formal arrangement between a creditor and debtor for the repayment of overdue amounts. The agreement outlines specific payment terms, schedules, and consequences of default while ensuring compliance with federal regulations such as the Fair Debt Collection Practices Act and applicable state usury laws.

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What is a Past Due Payment Arrangement Agreement?

The Past Due Payment Arrangement Agreement is essential when parties need to formalize terms for settling overdue payments in the United States. This document is commonly used when standard payment terms have not been met and parties wish to create a structured repayment plan. It includes specific payment schedules, interest rates (if applicable), and default provisions while ensuring compliance with both federal and state regulations. The agreement provides protection for both creditor and debtor by clearly documenting the terms of repayment and consequences of non-compliance.

What sections should be included in a Past Due Payment Arrangement Agreement?

1. Parties: Identification of creditor and debtor with full legal names and addresses

2. Background: Details of original debt, current amount owed, and circumstances leading to arrangement

3. Definitions: Key terms used throughout the agreement including Payment Terms, Original Debt, and Default

4. Payment Terms: Specific payment schedule, amounts, methods of payment, and due dates

5. Default Provisions: Consequences of missing payments or breaching agreement, including remedies and cure periods

6. Governing Law: Specification of applicable state law and jurisdiction

7. Signatures: Execution block for all parties with date and witness requirements

What sections are optional to include in a Past Due Payment Arrangement Agreement?

1. Interest Rates: Terms for interest charges, including rate calculation and application to outstanding balance

2. Security: Details of any collateral or security arrangements securing the debt

3. Early Payment Provisions: Terms for early payoff options and treatment of additional payments

4. Dispute Resolution: Procedures for handling disputes and specified mediation or arbitration processes

5. Representations and Warranties: Statements of fact and promises made by both parties regarding the debt and their capacity

What schedules should be included in a Past Due Payment Arrangement Agreement?

1. Schedule A - Payment Schedule: Detailed calendar of payment dates, amounts, and running balance

2. Schedule B - Original Debt Documentation: Copies of original agreements, invoices, or other debt evidence

3. Schedule C - Statement of Account: Current balance, payment history, and breakdown of principal and interest

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Sector

Banking

Cost

Free to use

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