Free Loan Assumption Agreement

This Loan Assumption Agreement (the "Agreement") is made and entered into on January 15, 2050, by and among the following parties:

1. Original Borrower:
   Name: John A. Smith
   Address: 123 Main Street, Springfield, XY 12345
   

2. Assuming Party:
   Name: Jane B. Doe
   Address: 456 Elm Street, Springfield, XY 12345
   

3. Lender:
   Name: [Your Company Name]
   Address: [Your Company Address]

Recitals

WHEREAS, the Original Borrower entered into a Loan Agreement with the Lender dated July 1, 2045, for a loan in the principal amount of $200,000 (the "Loan") secured by the property located at 123 Main Street, Springfield, XY 12345;

WHEREAS, the Assuming Party has agreed to assume all obligations and liabilities of the Original Borrower under the Loan;

WHEREAS, the Lender has agreed to approve this Loan Assumption subject to the terms and conditions of this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, the parties agree as follows:

1. Assumption of Loan Obligations

The Assuming Party agrees to assume and be fully liable for the Loan, including but not limited to:

• Remaining principal balance: $150,000 as of January 1, 2050.

• Interest rate: 3.5% fixed annually.

• Monthly payment: $1,350, due on the 1st of each month.

• Maturity date: June 30, 2060.

2. Release of Liability

Upon the execution of this Agreement and the Assuming Party’s first timely payment under the Loan, the Original Borrower shall be fully released from any liabilities, claims, and obligations associated with the Loan, subject to the Lender’s confirmation.

3. Representations and Warranties

1. Original Borrower represents that:

   • The Loan is in good standing, with no defaults as of the date of this Agreement.
     

2. Assuming the Party represents that:

   • They have reviewed and understand the terms of the Loan.

   • They have provided all necessary financial documentation to the Lender.

4. Lender’s Approval

This Agreement is contingent upon the written approval of the Lender. The Lender reserves the right to revoke approval if any terms or conditions of the original Loan Agreement are breached during the assumption process.

5. Governing Law

This Agreement shall be governed by and construed by the laws of the State of XY.

6. Entire Agreement

This Agreement constitutes the entire understanding among the parties regarding the subject matter hereof and supersedes all prior agreements, representations, and understandings.

Signatures

Original Borrower
Name: John A. Smith
Date: January 15, 2050

Assuming Party
Name: Jane B. Doe
Date: January 15, 2050

Lender

Name: [Your Name]

[Your Company Name]

Date: January 15, 2050

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