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Form #1312License to insolvent debtor to continue business, with covenant by creditors not to sue
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License to insolvent debtor to continue business, with covenant by creditors not to sue
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Submissions to this site, including any legal or business forms, posts, responses
to questions or other communications by contributors are not intended as and should
not be construed as legal advice. You are strongly encouraged to consult competent
legal council before engaging in any action based upon content contained on this
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or any other commercial use is prohibited. This includes reposting forms from this
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points to consider in different transactions. They are offered with the understanding
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License to insolvent
debtor to continue business, with covenant by creditors not to sue.
The creditors of _________, whose names are contained
in the schedule attached to and made a part of this agreement, respectively
grant to debtor free and absolute liberty and license, for _________ months
from the date of this agreement, to manage and carry on his [her] trade or
business of a merchant, and to collect, realize, and dispose of, all the real
and personal estate of which he [she] is now seized, possessed, or entitled,
with a view to the gradual payment of his [her] debts, but subject nevertheless
to the provisos contained below. We mutually agree with each other, and
respectively covenant with the debtor, that we will not, during the continuance
of the letter of license, sue or attach the debtor or his [her] estate for or
on account of the debts set opposite to our respective names in the schedule,
and that this agreement may be pleaded as a defense to any action or other
proceeding which may be instituted by us against the debtor or his [her] estate
in breach of this covenant.
We mutually agree as follows:
1. All moneys from time to time realized from the
carrying on of the business, or from the estate (except so much as shall be
actually required for current expenses of the business), shall be paid into the
_________ Bank to the joint account of _________ of _________, as a committee
acting on behalf of the general body of creditors, and shall be applied in
payment of dividends on our debts in such manner and at such times as the
committee shall think fit.
2. Nothing in this agreement shall prejudice or affect
our rights against sureties, or against any person, except the debtor, or our
rights or remedies in respect of securities held by us for our debts, or any
part of our debts, but all rights and remedies, and generally all our rights
and claims, as creditors of the debtor, shall have the same force, and be
subject to the same rules and obligations (as nearly as may be), as if the
estate of the debtor were being administered in bankruptcy.
3. If during the _________ months the debtor shall be
declared bankrupt or insolvent in proceedings commenced by or against him [her]
in a court of bankruptcy or insolvency, or the committee shall certify that
owing to the unsatisfactory condition and prospects of the business, or for any
other reason, this agreement will cease, and the license and covenants on our
part contained above shall be absolutely at an end and void.
[Date
and signatures]
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Submissions to this site, including any legal or business forms, posts, responses
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not be construed as legal advice. You are strongly encouraged to consult competent
legal council before engaging in any action based upon content contained on this
site.
These downloadable forms are only for personal use. Retransmission, redistribution,
or any other commercial use is prohibited. This includes reposting forms from this
site to another site offering free legal or other document forms for download.
Please note that the donator may have included different usage terms regarding this
form, and you agree to abide by these terms. It is highly recommended that you have
a licensed attorney review any legal documents for which you are searching in order
to make sure that your needs are being properly and completely satisfied.
Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
for any damage you might incur from your use of any submissions contained on this
site. If you do not agree to the above terms, please do not proceed.
These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
about the competence, character or qualifications of its participating members.
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Keywords: License,insolvent,debtor,business,covenant ,creditors,sue
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