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Form #1322

Debtor's agreement to form a corporation with pledge of capital stock for creditors

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Debtor's agreement to form a corporation with pledge of capital stock for creditors

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Debtor's agreement to form a corporation with pledge of capital stock for creditors.

Agreement made at _________, on _________[date], by and between _________, called debtor, and the undersigned creditors, called creditors.

Undersigned are creditors of debtor for the respective sums set opposite their names or as their interest may appear.

Debtor finds it impossible to pay the creditors at the present time.

In consideration of one dollar, and other good and valuable considerations, and in consideration of all the other creditors of debtor executing this agreement, it is agreed between debtor and the parties to this agreement as follows:

1. Debtor agrees to organize a corporation to be known as _________ Corporation, with an authorized capital stock of not more than $_____.

2. Debtor agrees to sell, assign, transfer, and turn over to the corporation, when organized, all his [her] assets of every kind, nature and description now employed by him [her] in the business carried on under the trade name of debtor, located in _________ and elsewhere, in exchange for common stock in the corporation to be organized as provided above.

3. Debtor agrees to execute and deliver to the undersigned creditors his [her] collateral notes, due on or before _________ years after the dates of the notes, for the sums due them respectively, and to assign and pledge to each creditor as security for the indebtedness due the creditor, capital stock for such an amount that the stock so pledged shall bear the same relation to all the stock issued to debtor, as provided above, which the indebtedness of the creditor bears to the total indebtedness of all the undersigned creditors. Stock not issued to creditors, shall not be issued or sold except for cash to be used for working capital.

4. In consideration of the above statements and the consideration previously mentioned, the undersigned creditors agree to accept from debtor in payment of their respective indebtedness, the collateral notes of debtor secured by capital stock as provided by paragraph 3, and agree with debtor to the transfer of his [her] assets to the proposed corporation, to be known as _________, Inc., and waive any and all notice required by the Bulk Sales Law of the State of _________, the State of _________, and the State of _________.

[Date and signatures]



 
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Total Forms Contributed 69
 

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Terms Of Use

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 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: Debtor,agreement,form,corporation,pledge,capital,stock,creditors

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