COLLECTION AGREEMENT

THIS AGREEMENT is made and entered into this _______ day  of , 19          , by and between                       

                    , (hereinafter  referred to as the "Creditor"), and                                                   ,

(hereinafter  referred to as the "Debtor").

WITNESSETH:

     WHEREAS, Debtor acknowledges an indebtedness to  Creditor in the amount of $_______________; and

     WHEREAS, Debtor is willing to satisfy said  indebtedness,


 

and Creditor is willing to accept payment from  Debtor, subject to the terms of this Agreement. 

NOW, THEREFORE, in consideration of the mutual promises

contained herein, the parties agree as follows:

l.     Evidence of Indebtedness and Payment Terms.  Debtor  shall

execute, simultaneously herewith, a promissory  note in the amount of the indebtedness, with no interest  thereon, unless otherwise set out hereinafter.  Debtor  shall pay Creditor the total amount of said indebtedness  in installments of $ _________ per month, the first  installment being due on the ____ day of __________________, 19 ___, and continuing thereafter on  the ____ day of each and every month until all sums due  hereunder have been paid in full. 

2.     Acceptance by Creditor.  Creditor shall accept  payments

made by Debtor in accordance with Paragraph l  herein above.  So long as Debtor pays the agreed upon  amount in the manner specified herein above, Creditor  shall not bring suit or take any other action against  Debtor. 


 

3.       Satisfaction and Release.  Upon full payment by  Creditor of

the amounts specified herein, during the  time period specified herein, Debtor shall be released  from the present claim of


 

Creditor and Creditor shall  satisfy and surrender all notes and other evidence of  indebtedness now held in connection with the present  claim. 

4.       Default by Debtor.  If Debtor shall default in  making the

payments specified in Paragraph l herein  above, in the manner provided therein, Creditor shall  accelerate the full amount due, less payments received,  and shall demand that the entire


 

remaining balance due  hereunder be immediately paid.  Creditor shall have the  right to pursue any remedy, in law and/or in equity,  irrespective of this Agreement. 

5.     Debtor Release.  Debtor hereby releases Creditor from any

and all claims, actual or otherwise which Debtor may claim against Creditor and waives any and all defenses to collection of the obligation created herein.

6.       Governing Law.  This agreement, and all  transactions

contemplated hereby, shall be governed by,  construed and

enforced in accordance with the laws of  the State of __________. The parties herein waive trial  by jury and agree to submit to

the personal jurisdiction  and venue of a court of subject matter jurisdiction  located in __________ County, State of ___________. In  the event that litigation results from or arises out of


 

this Agreement or the performance thereof, the parties  agree to

reimburse the prevailing party's reasonable  attorney's fees, court costs, and all other expenses,  whether or not taxable by the court as costs, in  addition to any other relief to which the prevailing  party may be entitled.  In such event, no action shall  be entertained by said court or any court of competent jurisdiction if filed more than one year subsequent to  the date the cause(s) of action actually accrued  regardless of whether damages were otherwise as of said  time calculable. 

IN WITNESS WHEREOF, the parties have hereunto set their

hands and seals the day and year first above written. 

     Signed, sealed and delivered in the presence of:

______________________________     ______________________________

Witness        Creditor

______________________________

Witness

______________________________     ______________________________

Witness        Debtor

______________________________

Witness