Ontario General Assignment of Rents
This General Assignment of Rents template is for lenders in Ontario to obtain additional security for the repayment of a borrower's debt.
- Under the Assignment a corporate borrower (debtor) assigns to the lender all rents, income and revenue from a mortgaged property, as security for a loan or line of credit being advanced to the borrower by the lender.
- The borrower agrees not to accept prepayment of the rents or to further assign or encumber the rents or the leases.
- The borrower may continue to receive the rents unless it is in default under the Assignment. In that event, the rents must be paid to the lender.
- The lender has the right to enter the property and collect the rent, enforce the lease or maintain the property.
If you lend money or extend credit facilities in Ontario, you should have a copy of the General Assignment of Rents as part of your documentation package.