Ontario Share Pledge Agreement

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.
• This legal form template is available in MS Word format.
• Intended for use in the Province of Ontario, Canada.

Under the terms of this Share Pledge Agreement for Canadian lenders, a borrower pledges shares to the lender as security for the loan.

• The lender will keep possession of the shares until the loan is repaid.
• The lender has the right to vote the shares and to receive any benefit (such as dividends) from the shares while the shares are being held as security.
• This legal form can be used in any Canadian province or territory.

Download the Canada Share Pledge Agreement (Loan Security) for your loans department.

Are you loaning money or extending credit facilities to a customer or other party? Document your security interest as a creditor and make sure you get repaid with this Canada Loan Security Forms Package.

The package contains the following forms:

1. General Security Agreement,
2. Unconditional Guarantee and Postponement of Claim,
3. Promissory Note to be executed by the borrower.

Don't run the risk of having a customer fail to honour its payment obligations. Get the Canada Loan Security Forms Package for your business.