What Is The Purpose Of A Forbearance Agreement


717 The overriding obligation and the creditor`s obligation to enforce its security right in good faith and in an economically reasonable manner should apply in the same way in the context of a forbearance agreement. Forbearance conditions that are too onerous for the debtor – for example, an unjustified increase in interest rates, penalties for forbearance fees, an excessive restriction or control of the debtor`s creditworthiness, or the imposition of an unreasonably short period of time for a sale process – can not only jeopardize the lender`s security position, but may entail other risks. .