Debt Cancellation Contract Law and Legal Definition

According to 12 CFR 37.2 [Title 12 -- Banks and Banking; Chapter I -Comptroller of the Currency, Department of the Treasury; Part 37 -- Debt Cancellation Contracts and Debt Suspension Agreements] debt cancellation contract means “a loan term or contractual arrangement modifying loan terms under which a bank agrees to cancel all or part of a customer's obligation to repay an extension of credit from that bank upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents.”