Agreement for Accord and Satisfaction by Refinancing Debtor's

Property in Name of Creditor

Agreement made on the ___ day of __________, 20___, between John Doe of (street
address, city, county, state, zip code), referred to herein as Debtor, and Acme, Inc., a corporation
organized and existing under the laws of the state of ______________, with its principal office
located at (street address, city, county, state, zip code), referred to herein as Creditor.
Whereas, Debtor is indebted to Creditor in the total amount of $____________for the
purchase of (describe what Debtor purchased) from Creditor from (date) to (date); and
Whereas, Debtor is unable, at the present time, to pay this debt and desires to make
arrangements to give Creditor security for the debt and for its payment; and
Whereas, Debtor is the owner of a lot and building located at (street address, city,
county, state, zip code), more fully described in certain land records recorded in the office of
(county official who maintains land and mortgage/deed of trust records) in Book ___ and Page
_____; and
Whereas, Creditor desires security for this debt and is willing to attempt to refinance the
premises in Creditor's name and to apply moneys thus raised to the debt;
Now, therefore, for and in consideration of the foregoing and of the covenants and
agreements of Creditor and Debtor set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties covenant and agree as
follows:
I.

Conveyance of Property
Debtor agrees to immediately convey the above-described property to Creditor, and
Creditor agrees to accept this property and assume the existing indebtedness on the property
which is secured by said (i.e., mortgage or deed of trust).
II.

Refinancing
Creditor agrees to secure, if reasonably possible, a new mortgage loan secured by a (i.e.,
mortgage or deed of trust) on the above-described premises. In the event that Creditor does
secure a new mortgage loan secured by said premises, all moneys received by Creditor, over and
above the existing secured indebtedness on the premises and over and above the expenses of
obtaining a mortgage loan, will be credited to the account of Debtor. In the event that Creditor is
able to obtain a new mortgage loan secured by the premises in an amount that would exceed the
debt owing Creditor by Debtor, Creditor will refund to Debtor the excess amount. Creditor
agrees that, after a mortgage loan has been secured on the above-described property, Creditor
will immediately convey the property to Debtor for the sole consideration of the assumption by
Debtor of the indebtedness secured by the property.
III.

Use of Property until Refinanced

Until such time as a new mortgage loan is secured on this property, Creditor will rent the
property to Debtor for a sum that will equal the monthly payments due on the existing mortgage
loan.
IV.

Purpose of Agreement
It is the purpose of this agreement, and the intent of the parties, to provide security for the
debt owed by Debtor to Creditor, and further, to allow Creditor to attempt to refinance the above
premises in order to raise money to pay the indebtedness owed by Debtor to Creditor. Creditor
does not desire to make a profit from the property conveyed to Creditor. All moneys received by
Creditor, after deducting Creditor's expenses, shall be applied to the debt owed by Debtor to
Creditor.
V.

Repayment without Refinancing

It is understood that, if the debt owed by Debtor to Creditor is paid by Debtor by means
other than a new mortgage loan on the above property, Creditor will immediately reconvey the
property to Debtor.
VI.

Failure to Refinance
In the event that the property is not refinanced on or before (date), Creditor will have the
right, after that date, to sell the property; provided, however, that the property shall not be sold
for less than $___________ . All moneys received from this sale, over and above the expense of
the sale, will be first applied against the indebtedness owed by Debtor to Creditor and the
balance, if any, paid to Debtor.
VII.

Mandatory Arbitration
Notwithstanding the foregoing, and anything herein to the contrary notwithstanding,
any dispute under this agreement shall be required to be resolved by binding arbitration of the
parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator
and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said
dispute. The arbitration shall be governed by the rules of the American Arbitration Association
then in force and effect.
WITNESS our signatures as of the day and date first above stated.
ACME, INC.

________________________
JOHN DOE

By__________________________
(Name and Office in Corporation)