Payment Agreement
Dated __________
This Payment Agreement (the "Agreement") is made between __________, of __________ (the "Creditor"), and __________, of __________ (the "Debtor").
1. Amount owed. The Debtor owes the Creditor the total sum of __________ for __________. The Debtor acknowledges that this amount is due and agrees to repay it as set out below.
2. Payment plan. The Debtor will pay __________ in 12 monthly installments of __________, starting on __________, with the last payment due on __________. No interest is charged on the balance. Payments will be made by __________.
3. Early payment. The Debtor may pay all or part of the remaining balance at any time without penalty. Early payments are applied to the next installments due.
4. Late payment. If a payment is not received within 5 days after its due date, the Debtor will pay a late fee of __________ for that payment. Late fees will not exceed the amount permitted by applicable law.
5. Default. The Debtor is in default if any payment is more than 30 days late or if the Debtor fails to meet any other term of this Agreement. The Creditor will give the Debtor written notice of the default and 10 days to correct it.
6. Remaining balance on default. If the Debtor does not correct a default within the cure period, the Creditor may declare the entire unpaid balance immediately due and may pursue any remedy available under applicable law.
7. Entire agreement and changes. This Agreement is the complete agreement between the parties about this debt. Any change must be in writing and signed by both parties. If any part of this Agreement is found unenforceable, the rest remains in effect.
8. Governing law. This Agreement is governed by the laws of the State of __________.