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 Florida Assumption Agreement of SBA Loan refers to a legal contract governing the transfer of ownership and responsibility of a Small Business Administration (SBA) loan in the state of Florida. It outlines the terms and conditions to be followed by the party assuming the loan and the original borrower, ensuring that all parties involved are in compliance with SBA regulations and state laws. The agreement specifies the rights, obligations, and liabilities of the parties involved. It typically includes details about the loan amount, interest rate, repayment terms, and any collateral pledged to secure the loan. The borrower's consent is vital for the assumption agreement to be executed, as they transfer their rights and obligations to the new party. There are different types of Florida Assumption Agreement of SBA Loan, including: 1. Full Assumption Agreement: This type of agreement transfers the entire loan obligation to the new party, relieving the original borrower from any further responsibility. The new party becomes solely responsible for the repayment of the loan. 2. Partial Assumption Agreement: In this scenario, only a portion of the loan liability is assumed by the new party. The original borrower remains responsible for the remaining loan balance, while the new party takes on the assumed amount. 3. Assumption with Release: This type of agreement allows the original borrower to be partially or fully released from liability for the loan. The new party assumes responsibility for the loan, and the SBA releases the original borrower from any remaining obligations. 4. Assumption with Co-Liability: This form of agreement allows the original borrower to transfer the loan responsibility to the new party but remains partially liable for the loan. This means that if the new party defaults, the SBA can still pursue the original borrower for repayment. It is important for all parties involved in the Florida Assumption Agreement of SBA Loan to carefully review the agreement and seek legal advice if necessary. Compliance with SBA regulations and state laws is critical to ensure a smooth transfer of the loan obligation and to minimize any potential legal issues in the future.
