ACKNOWLEDGMENT OF CONFESSION OF JUDGMENT PROVISIONS Clause Samples
The ACKNOWLEDGMENT OF CONFESSION OF JUDGMENT PROVISIONS clause serves to confirm that a party understands and agrees to terms allowing a judgment to be entered against them without a trial if they default on their obligations. Typically, this clause requires the party to acknowledge that they have read and voluntarily accept the consequences of a confession of judgment, which may be included in loan agreements or settlement documents. Its core function is to ensure that the party is fully aware of the legal implications, thereby reducing the risk of future disputes over the enforceability of the judgment and streamlining the creditor's ability to collect on a debt.
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ACKNOWLEDGMENT OF CONFESSION OF JUDGMENT PROVISIONS. BORROWER ACKNOWLEDGES AND AGREES THAT THE NOTES AND THE LOAN DOCUMENTS CONTAIN PROVISIONS WHEREBY BANK MAY ENTER JUDGMENT BY CONFESSION AGAINST BORROWER AFTER DEMAND OR THE OCCURRENCE OF AN EVENT OF DEFAULT, AS THE CASE MAY BE. BEING FULLY AWARE OF ITS RIGHTS TO PRIOR NOTICE AND HEARING ON THE QUESTION OF THE VALIDITY OF ANY CLAIMS THAT MAY BE ASSERTED AGAINST IT BY BANK UNDER THE NOTES AND LOAN DOCUMENTS, BEFORE JUDGMENT CAN BE ENTERED, BORROWER HEREBY WAIVES THESE RIGHTS AND AGREES AND CONSENTS TO BANK ENTERING JUDGMENT AGAINST BORROWER BY CONFESSION. ANY PROVISION IN A CONFESSION OF JUDGMENT IN ANY OF THE LOAN DOCUMENTS FOR AN ATTORNEY'S COLLECTION COMMISSION SHALL IN NO WAY LIMIT BORROWER'S LIABILITY TO REIMBURSE BANK FOR ALL LEGAL FEES ACTUALLY INCURRED BY BANK, EVEN IF SUCH FEES ARE IN EXCESS OF THE ATTORNEY'S COLLECTION COMMISSION PROVIDED FOR IN SUCH CONFESSION OF JUDGMENT.