Postponement of Debt Agreement

This agreement is to be used where a creditor (often a shareholder or investor) in a corporation agrees not to be repaid on a specific debt until a 2nd creditor is repaid. This type of agreement is usually made when the 2nd creditor refused to make a loan unless there is an assurance that it will be repaid first. This agreement does not allow the periodic repayment of interest to be paid to the 1st creditor until all of the indebtedness to the 2nd creditor has been paid off. (continued ...)