An Accord and Satisfaction of Debt Release is an agreement to release the Debtor of their obligations
under the Debtor Agreement. This can occur if the Debt has been paid in full or in certain cases,
where the Lender has accepted less than is legally due in order to reach a settlement. The Releasing
Party agrees to release any legal claims they have to the debt in exchange for an agreed upon
compensation. Generally, most corporations or individuals should have a formal Release or Wavier
drafted upon the loan being discharged or, otherwise agreed to being discharged at a lower amount,
so that they have a formal record of the legal release. This is important if the loan or promissory note
is secured and that security is registered to unregister the interest placed against that individual
lendor or legal entity.
