This waiver of loan default is between , an individuala(n)   (the "Lender") and , an individuala(n)  (the "Borrower").

The Lender and the Borrower are parties to a loan agreement dated (the "Loan Agreement"), a copy of which is attached as Exhibit A.

Under the Loan Agreement, the Lender provided a loan of $ to the Borrower.

The Borrower has defaulted under the terms of the Loan Agreement (the "Default") by , and has asked that the Lender waive the Default. The Lender has agreed to do this.

The parties therefore agree as follows:


The Lender hereby irrevocably waives the Default as of the Effective Date. This waiver is made in reliance on, and is subject to, the Borrower's representations in section 2 below being accurate as of the effective date (as described in section 9).


As of the effective date of this waiver (as described in section 9), the Borrower represents as follows:

  • (a) after giving effect to this waiver, each of the representations contained in section of the Loan Agreement is true in all material respects;
  • (b) except for the Default, no default or event of default has occurred and is continuing;
  • (c) no default or event of default will result from the effectiveness of this waiver or any transaction contemplated under it;
  • (d) no material adverse change has occurred since the date of the borrowing; and
  • (e) no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or other third party is required for the Borrower's due execution and delivery of this waiver.


This waiver is not a waiver of:

  • (a) any breach by the Borrower of the Loan Agreement; or
  • (b) any right to terminate the Loan Agreement, except as a result of the Default.


If there is a conflict between this waiver and the Loan Agreement, the terms of this waiver will control.


Except as expressly amended and supplemented by this waiver, the Loan Agreement remains effective and the parties hereby ratify and confirm the terms of the Loan Agreement.


No amendment to this waiver will be effective unless it is in writing and signed by both parties.


  • (a) Counterparts. The parties may execute this waiver in any number of counterparts, each of which is an original but all of which constitute one and the same instrument.
  • (b) Electronic Signatures. This waiver, agreements ancillary to this waiver, and related documents entered into in connection with this waiver are signed when a party's signature is delivered by facsimile, email, or other electronic medium. These signatures must be treated in all respects as having the same force and effect as original signatures.


The descriptive headings of the sections and subsections of this waiver are for convenience only, and do not affect this waiver's construction or interpretation.


This waiver will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.

Each party is signing this waiver on the date stated opposite that party's signature.

Date: _____________________________By: _________________________________________________________

Date: _____________________________By: _________________________________________________________


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Waiver of loan default agreement: How-to guide

No matter the protective measures taken, borrowers can sometimes default on loan terms or payments. If the borrower isn’t able to repay the loan amount as planned for a specific time but still wants to continue their loan obligations, a waiver can help the parties achieve their goals. 

A waiver of loan default agreement allows the lender to waive a borrower’s default and continue the lending relationship. A written contract minimizes confusion and misunderstanding and sets forth the parties’ expectations and fulfillment obligations. It helps the lender be in the know and plan their finances accordingly during the term of the agreement.

Key considerations when a loan agreement defaults

Decide the terms of the loan waiver

Before writing the default waiver agreement, decide exactly what your goals are. Try to capture the revisions without invalidating or confusing the original agreement. Some of the terms that you can clarify are:

  • Is the waiver of loan payment temporary, or will it continue indefinitely? 
  • Are related loan documents required?
  • Are there other changes to be made in the contract terms if there are multiple events of default?
  • If a third party is involved during the signing of the actual loan agreement, is their consent required while signing the loan default waiver?

Check your loan documents

Review the terms of your promissory note or loan agreement. It should include information about the steps a lender must take during an event of default and about the consequences that can or will result for the borrower. If there are specific procedures that you have to follow in connection to your loan agreement, ensure that you have followed them.

The terms of your original loan agreement are still in effect, so make sure both parties continue to perform their obligations under that agreement until the waiver is completed and signed.

Review both loan default waiver and loan document 

Before giving approval, the borrowers and lenders should review the original loan agreement and the waiver form. If parties notice any change in the terms of the agreements, they must report it and revise them accordingly. This will avoid future disputes and claims that they didn’t understand the agreement terms and signed it without knowing.

After the loan default waiver is ready, the borrower and the lender should sign two copies of the agreement. The borrower keeps one copy, and the lender holds the other.

According to the nature of its terms, you may decide to have your waiver witnessed or notarized. This will limit later challenges to the validity of a party’s signature. 

Seek an attorney’s help to draft your loan waiver agreement if you feel your agreement is complicated.

Key provisions of a waiver of loan default agreement

The following instructions will help you understand the terms of your waiver.


Begin by identifying the parties to the agreement and the effective date (the date when the agreement is signed). In the agreement, the person or company who wants the loan is called the “borrower,” the one who gives the loan is known as the “lender.” 

The parties signing must be the same as those who signed the original agreement (unless one of the new signers is an agent of the same company that initially signed) and should have the same designations as well. For example, suppose the manager of the lender company signed the original agreement, but a new manager has replaced the previous one. In that case, the new manager will sign the waiver agreement.


This section identifies the document as a waiver of the loan default agreement and explains what is being requested. Provide the effective date of the actual loan agreement and the amount of the loan that was provided. 

You must also add a detailed description of how the borrower is in default under the loan agreement. The waiver form should also include a signed copy of the loan agreement.

Waiver of default

This part explains the lender’s waiver of the borrower’s default. Note that the waiver is decided based on the borrower’s representations and warranties. 

Borrower’s representations and warranties

Here, the borrower represents their eligibility for the waiver and provides information about their current financial condition and viability. The lender’s willingness to give the waiver is based upon such representations. Hence, the parties should check and read this section carefully. Other covenants the parties should check are:

  • Representations and warranties: Review the representations and warranties in the original loan agreement.
  • No defaults: Here, the borrower promises that, except for the default being waived, they have not defaulted on other payments under the terms of the loan agreement.
  • No change in condition: This part states that the borrower’s financial condition remains the same, reassuring the lender that the borrower will be able to repay the loan.
  • No authorizations: This clarifies that the borrower doesn’t need permission from a third party (e.g., a parent company or another lender) to sign the waiver.
  • Due executionIt states that the waiver will be a binding obligation of the borrower, and an authorized representative is signing it. 

No general waiver

This part emphasizes that the lender's waiver is specific to the default that is the subject of this document. In other words, if the borrower defaults to another payment or if either party wants to terminate the loan agreement, all rights and remedies remain available. Neither party’s rights are in any way compromised by this specific waiver. 


In this section, explain which document’s terms will govern the agreement if there is a conflict between the waiver language and the language of the original loan agreement. 

Continuation of agreement

This serves as an “affirmation” of the original loan agreement. In other words, the only thing that changes in the original agreement is the specific waiver being made: all of the other terms of that agreement remain effective.

Entire agreement

Here, the parties agree that the document they’re signing (when taken together with the original loan agreement) is “the agreement” about the issues involved.


This section states that if there are any changes concerning the waiver, it will be in writing and signed by both parties.

Governing law

This segment allows the parties to choose the state law that will be used to interpret the waiver.

Counterparts; electronic signatures

This provision states that subject to the availability of the borrowers and the lenders, they can sign the loan default waiver with the help of electronic signatures.

Frequently asked questions

What's a waiver of loan default agreement?

Despite our best efforts to prevent it, sometimes borrowers default on their loans. If this happens, taking the proper steps to move forward is essential. If you want to continue your lending agreement, a waiver of loan default agreement is a great place to start, clearing a path to a solution and a profitable future.

What basic information is required to complete a waiver of loan default agreement?

To complete your waiver of loan default, you’ll need some basic information like who the lender and borrower of your loan agreement is, information about the waived amount, etc. 

To fill out your agreement, ensure you keep the following details:

  • Who the lender is: Keep the lender's name and contact information handy.
  • Who the borrower is: Keep the borrower’s information ready.
  • Details about the waiver: Include when the default happened and the default amount.
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