Notice and Tender of Debtor Form. You’ve exhausted all of your options to collect a customer’s debt. While this isn’t a pleasant experience for
anyone involved – you need to continue to do what you can to rectify the situation.
When all else fails, use this letter to communicate your intentions to collect your collateral to your customer.
Although your customer won’t be happy when he receives this letter, at least he will be reminded of the terms that he agreed to and will know what you currently expect from him!
I’ve said it once, and I’ll say it again – such requests always need to be put in writing.
Use the Notice and Tender of Debtor Form to protect yourself!!
NOTICE AND TENDER BY DEBTOR
You are hereby notified that the undersigned elects to redeem the [collateral] that is currently in your possession pursuant to that certain security agreement, the date of which is ________, for which said collateral was pledged to secure performance. Election is hereby made in accordance with the rights afforded under the Uniform Commercial Code Section 9506.
Therefore, the undersigned hereby tenders fulfillment of all obligations pursuant to said security agreement and secured by said collateral, in addition to the amount of $______ for your expenses in repossessing, holding, preparing the collateral for disposition through sale, arranging for sale, attorney's fees and legal expenses.
Demand is hereby made that you make the said collateral available for retaking by the undersigned.