This form is an assumption agreement for a Small Business Administration (SBA) loan. Party assuming the loan agrees to continue payments thereon. SBA agrees to the assumption of the loan and release of original debtor. Adapt to fit your circumstances.
The Arizona Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions under which a borrower can assume an existing Small Business Administration (SBA) loan in the state of Arizona. This agreement is typically used when an individual or entity wishes to take over the responsibility of repaying an SBA loan from the original borrower. The Arizona Assumption Agreement of SBA Loan covers various aspects of the assumption process, including the rights and obligations of both the original borrower and the assuming party. It typically includes provisions regarding loan terms, repayment schedules, interest rates, and any other pertinent financial details. The agreement also establishes the responsibilities of the assuming party, such as providing financial statements or other documentation to prove their creditworthiness and ability to repay the loan. It may also require the assuming party to indemnify and hold harmless the original borrower and the SBA from any liabilities associated with the loan. It is important to note that there may be different types of Arizona Assumption Agreements of SBA Loan, depending on the specific circumstances and requirements of the parties involved. These can include: 1. Full Assumption Agreement: This type of agreement occurs when the assuming party takes complete responsibility for the loan, including both the outstanding principal and any accrued interest. 2. Partial Assumption Agreement: In some cases, the assuming party may only be willing or able to assume a portion of the loan. In this scenario, the agreement will specify the exact amount that the assuming party will be responsible for, while the original borrower will continue to be liable for the remaining balance. 3. Temporary Assumption Agreement: This type of agreement allows for the temporary assumption of the loan, typically for a specific period of time or until certain conditions are met. It may occur when the original borrower is facing temporary financial difficulties and needs someone else to step in and make loan payments temporarily. Overall, the Arizona Assumption Agreement of SBA Loan is a critical document that governs the transfer of liability for an SBA loan from the original borrower to the assuming party in the state of Arizona. It protects the rights of both parties and ensures that all relevant financial obligations are properly addressed.
