Ontario Share Pledge Agreement with No Recourse

Prepare a Share Pledge Agreement with No Recourse with this template form, pursuant to the provisions of the Ontario Personal Property Security Act.

• A shareholder pledges shares of stock to a lender, to be held as security for a loan that the lender is making to a borrower that is a related party to the shareholder.
• The borrower agrees to pledge any additional, substitute or replacement shares issued in its name.
• The borrower retains the right to vote the shares.
• The shareholder has no liability for any shortfall between the balance of the debt owing and any proceeds realized from dealing with the shares, and the lender has no recourse against the shareholder for such shortfall.
• The shareholder is not a guarantor, surety or indemnifier.