forbearance


Also found in: Dictionary, Thesaurus, Legal, Wikipedia.
Related to forbearance: Forbearance Agreement

Forbearance

The temporary suspension of loan repayments due to demonstrated financial hardship on the part of the borrower. Interest continues to accrue during forbearance and thus may extend the repayment period or cause payments to increase once they re-commence. A borrower must apply to the lender to be considered for forbearance.

forbearance

The act of restraining from exercising a right.

1. Typically encountered in leases and other contracts specifying that a forbearance by one party who fails to declare a default when entitled shall not entitle the other party to rely on future forbearances and will not constitute a waiver of any rights.

2. After a loan default, lenders will sometimes enter into formal forbearance agreements with borrowers, agreeing not to foreclose if the borrowers will agree to a new payment plan, pay all attorneys' fees associated with drafting the agreement, usually agree to a  higher interest rate and more collateral, and almost always agree to waive any and all claims against the lender.

References in periodicals archive ?
Global Cloud Xchange (GCX) has announced that the July 31, 2019, forbearance agreement that was entered into by 87 percent of its bondholders has been further extended until 5:00pm (EDT) on September 13, 2019, the company said.
The forbearance agreement provides for, among other things, a two per cent consent fee payable to forbearing noteholders and payment of accrued interest to all noteholders (in each case with such amounts being added to the principal amount of the notes rather than being paid in cash); a fee equal to five percent of the outstanding principal amount of the bonds payable to forbearing noteholders if the notes are subsequently refinanced in full; the appointment of a Senior Managing Director of FTI Consulting as a Chief Restructuring Officer; and certain requirements that need to be fulfilled to maintain the forbearance agreement.
'We are, however, touched by Chief Fasoranti's stoical calmness and uncommon forbearance in the face of this trial from God.
Another 2.7 million borrowers are in forbearance, a status in which they are not required to make payments, but may see their balances grow due to interest accumulation.
Forbearance helps buffer the times when we might feel a vacillation of our core.
If you know you can't make your loan payments now due to the shutdown, ask your lender for a forbearance, which can apply to any type of loan.
Islamuddin Shaikh said Shaheed Mohtarma Benazir Bhutto strongly believed in the policy of reconciliation and forbearance.
After failing to make payments as required under the customer agreement, in April 2016, Greensill, Gulbin, and Terry executed a forbearance agreement whereby Greensill agreed to forbear legal action against defendants in exchange for defendants' agreement to repay monies owed pursuant to a specific payment schedule.
While replying to a question from the media men in accountability court Islamabad that as to why he had not sought resignation from head of subordinate organization who had conveyed this message to him Nawaz said he demonstrated forbearance, forgiveness and strength.
Lawmakers have given the Arizona Department of Water Resources forbearance authority on three occasions in the last decade or so, said Tom Buschatzke, director of the Arizona Department of Water Resources.
In a largely anticipated SEC filing made early Thursday (3/8), iHeart revealed that it has extended the term of a short-term forbearance agreement with respect to its May 2008 credit agreement with its consenting lenders until Tuesday at 12:59am Eastern.This reflects a Midnight deadline for the company based in San Antonio, Texas.