Deed of Debt Release
This month we have again added to our popular portfolio of Loan & Finance Documents with the addition of a Deed of Debt Release. This is a letter agreement in the form of a deed that releases a borrower from a debt that it owes.
This template is designed to be used when both the lending and borrowing entities are companies, although it can be adapted to be used where one or other party is an individual. A typical scenario is where a parent company proposes to write off a debt owed to it by a wholly owned subsidiary.
We already have various documents related to loan repayment available for you to download, including a Loan Waiver Request Letter and a Loan Repayment Demand Letter, but if it is proposed that a debt be completely written off, this new deed is designed to assist in documenting this process.
This deed is complemented by Board Minutes approving the Deed of Release which can be used to record the proceedings at a board meeting where a company’s board agrees to enter into a deed to release a borrower from a debt that it owes to the company. This document may be particularly useful for a company secretary, company administrator or accountant advising the board of such a company.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.