Form 5-6

This form assumes that the default is the debtor’s failure to pay an installment when due. Another ground for acceleration may exist. If so, it should be stated in the letter.

Letter to Debtor Giving Notice of Acceleration

[Date]

[Name and address of debtor]

Re:   [description of collateral, note, and security agreement]

[Salutation]

I have been retained as attorney for [name of creditor].

Because of your default in making payment in accordance with the terms of the refer­enced note and security agreement, the entire unpaid principal balance under the agreement, together with accrued but unpaid interest charges, late charges, and collection expenses as provided for in the agreement, is hereby accelerated and declared immediately due and pay­able. A copy of the note and security agreement is enclosed.

Demand is hereby made for the total amount of $[amount], which consists of $[amount], principal; $[amount], interest accrued through [date of acceleration]; and [itemize other charges].

Please forward payment of the full amount, after acceleration, that is due and unpaid under the terms of the agreement to my office immediately. Please note that the agreement requires you to pay any accrued late charges, collection expenses, and attorney’s fees. I have been instructed that unless I receive a certified check, cashier’s check, or money order for the full amount, after acceleration, that is due and unpaid on or before [number] days after the date of this letter, I am to take all legal steps that may be necessary to protect my client’s inter­ests.

Enclosed is an addressed, postage-paid envelope for your payment.

Sincerely yours,

   
[Name of attorney]

Certified Mail No. [number]

Return Receipt Requested

Enc.

c:   [name of creditor]