Debt Acknowledgment Letter - Template, Sample Form Pro · EN-CA-law

ACKNOWLEDGMENT OF DEBT

(Promissory Acknowledgment of Indebtedness)

THIS ACKNOWLEDGMENT OF DEBT is made and effective as of the ________ day of ________, 20________.

BY:

________, of ________ (the "Debtor");

IN FAVOUR OF:

________, of ________ (the "Creditor").

§ 1. ACKNOWLEDGMENT OF INDEBTEDNESS

1. The Debtor hereby unconditionally confirms and acknowledges that the Debtor is justly and truly indebted to the Creditor in the principal sum of $________ (________ Canadian Dollars) (the "Debt").
2. The Debtor acknowledges that the Debt is just and owing, and that the amount stated above is a true and accurate statement of the outstanding balance as of the date of this Acknowledgment.
3. The Debt includes all accrued interest and other miscellaneous charges lawfully owing to the date of this Acknowledgment.
4. The Debtor acknowledges that the Debt arose from ________ (the "Underlying Obligation").

§ 2. REPAYMENT

1. The Debtor covenants and agrees to repay the Debt to the Creditor in the manner following: ________.
2. The Debt, together with any interest accrued thereon, shall be paid in full on or before ________ (the "Maturity Date").
3. All payments shall be made to the Creditor at the address set out above, or at such other place as the Creditor may from time to time designate in writing, in lawful money of Canada, by ________.
4. The Debtor may prepay all or any part of the outstanding balance of the Debt at any time without notice, bonus or penalty.

§ 3. INTEREST

1. The outstanding balance of the Debt shall bear interest at the rate of ________ percent (________%) per annum, calculated ________, both before and after maturity, default and judgment.
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3. Nothing in this Acknowledgment shall require the payment of interest at a criminal rate within the meaning of section 347 of the Criminal Code (Canada), R.S.C. 1985, c. C-46, and any provision requiring such payment shall be read down to the maximum lawful rate.

§ 4. NO DEFENCES, SET-OFF OR COUNTERCLAIM

1. The Debtor acknowledges and agrees that the Debt is owing without any defence, abatement, deduction, credit, set-off or counterclaim of any nature whatsoever, and the Debtor hereby waives any such defence, set-off or counterclaim.
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§ 5. DEFAULT

1. Upon the failure of the Debtor to pay any amount when due, or upon any breach of this Acknowledgment, the entire outstanding balance of the Debt, together with all accrued interest, shall, at the option of the Creditor, become immediately due and payable.
2. The Debtor shall be liable to the Creditor for all reasonable costs and expenses, including legal fees on a full indemnity (solicitor and client) basis, incurred by the Creditor in enforcing or collecting the Debt.

§ 6. GENERAL PROVISIONS

1. Binding Effect. This Acknowledgment shall enure to the benefit of and be binding upon the parties and their respective heirs, executors, administrators, legal personal representatives, successors and permitted assigns.
2. Assignment. The Creditor may assign its rights under this Acknowledgment. The Debtor may not assign its obligations without the prior written consent of the Creditor.
3. Severability. If any provision of this Acknowledgment is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
4. No Waiver. No waiver of any provision of this Acknowledgment shall be effective unless in writing, and no failure or delay by the Creditor in exercising any right shall operate as a waiver thereof.
5. Entire Agreement. This Acknowledgment constitutes the entire agreement between the parties with respect to the Debt and supersedes all prior representations and agreements relating thereto.
6. Governing Law. This Acknowledgment shall be governed by and construed in accordance with the laws of the Province of ________ and the laws of Canada applicable therein (the "Governing Province"), and the parties irrevocably attorn to the exclusive jurisdiction of the courts of that Province.
7. Headings. The headings used in this Acknowledgment are for convenience of reference only and shall not affect its interpretation.

IN WITNESS WHEREOF the Debtor has duly executed this Acknowledgment of Debt as of the date first above written.

SIGNED, SEALED AND DELIVERED by the Debtor in the presence of:

________________________________     ________________________________

Witness Signature                             ________ (Debtor)

Witness Name: ________

Witness Address: ________

Date: ________