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 in Canada which has a Personal Property Security Act.