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 Nebraska Assumption Agreement of SBA Loan is a legal document that governs the transfer of a Small Business Administration (SBA) loan from one party (the original borrower) to another party (the new borrower). This agreement is specific to loans that are administered by the SBA in the state of Nebraska. An assumption agreement is required when the original borrower wants to transfer the loan and its accompanying obligations to a new borrower. It serves as a contract between the original borrower, the new borrower, and the lender (usually a bank or financial institution), outlining the terms and conditions of the transfer. The agreement typically includes several important components, such as: 1. Parties Involved: The agreement identifies the original borrower, the new borrower, and the lender, all of whom are parties to the assumption agreement. 2. Loan Details: The agreement specifies relevant information about the SBA loan, including the loan amount, the interest rate, the repayment terms, and any collateral or personal guarantees involved. 3. Conditions for Assumption: The agreement outlines the conditions that need to be met for the new borrower to assume the loan. This may include a review of the new borrower's creditworthiness and financial capability to repay the loan. 4. Release of Liability: The original borrower agrees to release the lender from any further obligations or liabilities associated with the loan once the assumption agreement is executed. 5. Governing Law: The agreement specifies that it is subject to the laws of the state of Nebraska, ensuring that any disputes or legal proceedings related to the assumption agreement will be resolved under Nebraska jurisdiction. Different types of Nebraska Assumption Agreements of SBA Loans may exist depending on the specific circumstances or requirements of the loan transfer. These variations could include: 1. Partial Assumption Agreement: In some cases, the original borrower may only transfer a portion of the outstanding loan balance to the new borrower. This type of assumption agreement will detail the specific terms and conditions for the partial transfer. 2. Collateral Substitution Agreement: If the new borrower wants to substitute the collateral securing the loan, a collateral substitution agreement may be required. This agreement allows for the release of the original borrower's collateral and the substitution of new collateral by the new borrower. 3. Assumption of a Defaulted Loan: If the original borrower has defaulted on the SBA loan, the new borrower may still assume the loan but will have additional obligations and conditions outlined in the assumption agreement to address the defaults. It is important to consult with a legal professional or seek guidance from the SBA to ensure compliance with relevant laws and regulations when executing a Nebraska Assumption Agreement of SBA Loan.The Nebraska Assumption Agreement of SBA Loan is a legal document that governs the transfer of a Small Business Administration (SBA) loan from one party (the original borrower) to another party (the new borrower). This agreement is specific to loans that are administered by the SBA in the state of Nebraska. An assumption agreement is required when the original borrower wants to transfer the loan and its accompanying obligations to a new borrower. It serves as a contract between the original borrower, the new borrower, and the lender (usually a bank or financial institution), outlining the terms and conditions of the transfer. The agreement typically includes several important components, such as: 1. Parties Involved: The agreement identifies the original borrower, the new borrower, and the lender, all of whom are parties to the assumption agreement. 2. Loan Details: The agreement specifies relevant information about the SBA loan, including the loan amount, the interest rate, the repayment terms, and any collateral or personal guarantees involved. 3. Conditions for Assumption: The agreement outlines the conditions that need to be met for the new borrower to assume the loan. This may include a review of the new borrower's creditworthiness and financial capability to repay the loan. 4. Release of Liability: The original borrower agrees to release the lender from any further obligations or liabilities associated with the loan once the assumption agreement is executed. 5. Governing Law: The agreement specifies that it is subject to the laws of the state of Nebraska, ensuring that any disputes or legal proceedings related to the assumption agreement will be resolved under Nebraska jurisdiction. Different types of Nebraska Assumption Agreements of SBA Loans may exist depending on the specific circumstances or requirements of the loan transfer. These variations could include: 1. Partial Assumption Agreement: In some cases, the original borrower may only transfer a portion of the outstanding loan balance to the new borrower. This type of assumption agreement will detail the specific terms and conditions for the partial transfer. 2. Collateral Substitution Agreement: If the new borrower wants to substitute the collateral securing the loan, a collateral substitution agreement may be required. This agreement allows for the release of the original borrower's collateral and the substitution of new collateral by the new borrower. 3. Assumption of a Defaulted Loan: If the original borrower has defaulted on the SBA loan, the new borrower may still assume the loan but will have additional obligations and conditions outlined in the assumption agreement to address the defaults. It is important to consult with a legal professional or seek guidance from the SBA to ensure compliance with relevant laws and regulations when executing a Nebraska Assumption Agreement of SBA Loan.
