Postponement Agreement under PPSA | Canada
Subordinate the security interest of an existing lender to a new lender under the terms of this Postponement Agreement for Canadian provinces with PPSA legislation.
- The parties to the Agreement are (i) a borrower, (ii) the borrower's new lender, and (iii) a previous lender who is still owed money by the borrower.
- The first lender agrees to postpone its security to the new lender's security, notwithstanding that the previous lender is a secured creditor.
- The purpose of the Agreement is to induce the new lender to provide the borrower with loan financing, a line of credit, or other type of borrowing arrangement.
- This legal contract is available in MS Word format and is easy to download and use.
- The Postponement Agreement can be used in any province or territory which has enacted a Personal Property Security Act.
Last Updated: 02-May-2021