This Assignment of Shareholder Loan/Interest Permitted is between a borrower who is indebted to a shareholder and negotiates a loan with a lender who demands a guaranty from the shareholder. This assignment sets forth the names of the parties, sum in which the assignor is indebted and the amount of the loan borrower has negotiated with new lender. It also sets out the maximum amount of interest payable to the assignor. It is imperative that this assignment be set forth in writing. A written Assignment of Shareholder Loan/Interest Permitting will be valuable in the event of misunderstandings or litigation between the parties.

This Assignment of Shareholders Loan/Interest Permitting contains:

• Parties: Identities of the shareholder, the borrower and lender who has agreed to negotiate a loan with the borrower;
• Indebtedness: Sets forth the amount of indebtedness due and that shareholder (the assignor) will assign a guaranty in favor of the new lender;
• Signatures: Both assignor and borrower must sign this assignment in the presence of a witness.

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This attorney-prepared packet contains:

1. General Instructions
2. Assignment of Shareholder Loan/Interest Permitted

State Law Compliance: This form complies with the laws of all states