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 Colorado Assumption Agreement of SBA Loan is a legal document that enables a borrower to transfer their Small Business Administration (SBA) loan to another individual or business entity. This agreement is specific to the state of Colorado and is governed by Colorado state laws. The purpose of the Colorado Assumption Agreement of SBA Loan is to outline the terms and conditions under which the assumption of the SBA loan will take place. It serves as a binding contract between the current borrower (the transferor) and the party assuming the loan (the transferee). The agreement typically includes key details such as the names and contact information of both parties, the principal loan amount, the interest rate, repayment terms, and any collateral or guarantees associated with the loan. It also addresses the rights and responsibilities of both parties regarding the assumption of the loan. There may be different types of Colorado Assumption Agreements of SBA Loans based on the specific circumstances. Some common variations include: 1. Full Assumption Agreement: This type of agreement occurs when the transferee assumes the loan in its entirety, taking on all the rights, obligations, and liabilities associated with the SBA loan. The transferor is completely released from further responsibility. 2. Partial Assumption Agreement: In this scenario, the transferee assumes only a portion of the SBA loan, while the transferor remains liable for the remaining balance. The agreement specifies the exact amount being assumed and the corresponding terms for repayment. 3. Substitution of Collateral Agreement: This agreement is applicable when the transferee provides substitute collateral to secure the SBA loan. The original collateral is released, and the substitute collateral becomes the new form of security for the loan. To ensure the agreement's legality and enforceability, it is advisable for both parties to consult with legal professionals experienced in SBA loan assumptions. This will help them draft a comprehensive agreement that adheres to the specific requirements set by the Colorado state laws and the SBA.The Colorado Assumption Agreement of SBA Loan is a legal document that enables a borrower to transfer their Small Business Administration (SBA) loan to another individual or business entity. This agreement is specific to the state of Colorado and is governed by Colorado state laws. The purpose of the Colorado Assumption Agreement of SBA Loan is to outline the terms and conditions under which the assumption of the SBA loan will take place. It serves as a binding contract between the current borrower (the transferor) and the party assuming the loan (the transferee). The agreement typically includes key details such as the names and contact information of both parties, the principal loan amount, the interest rate, repayment terms, and any collateral or guarantees associated with the loan. It also addresses the rights and responsibilities of both parties regarding the assumption of the loan. There may be different types of Colorado Assumption Agreements of SBA Loans based on the specific circumstances. Some common variations include: 1. Full Assumption Agreement: This type of agreement occurs when the transferee assumes the loan in its entirety, taking on all the rights, obligations, and liabilities associated with the SBA loan. The transferor is completely released from further responsibility. 2. Partial Assumption Agreement: In this scenario, the transferee assumes only a portion of the SBA loan, while the transferor remains liable for the remaining balance. The agreement specifies the exact amount being assumed and the corresponding terms for repayment. 3. Substitution of Collateral Agreement: This agreement is applicable when the transferee provides substitute collateral to secure the SBA loan. The original collateral is released, and the substitute collateral becomes the new form of security for the loan. To ensure the agreement's legality and enforceability, it is advisable for both parties to consult with legal professionals experienced in SBA loan assumptions. This will help them draft a comprehensive agreement that adheres to the specific requirements set by the Colorado state laws and the SBA.
