CANADA
Canadian lenders, secure repayment of a loan from a borrower with these Loan Transaction Forms for Canada. Fully editable and easy to customize to meet your needs.
Q. Why do I need to document a loan to a family member or close friend?
A. In order to be classified as a secured creditor you must document the loan and get some collateral from the borrower, such as a mortgage on their home or an encumbrance on a vehicle or other asset. Secured debts are not automatically wiped out if the borrower declares bankruptcy. Secured debts take priority over unsecured debts, and you will have the legal right to foreclose or repossess and sell the items given as collateral if the borrower fails to honour its payment obligations.
Q. What rate of interest can I charge?
A. If there is no provincial law in your area which governs how interest will be charged on a loan or mortgage, the Canada Interest Act applies. If you have not stated whether the interest rate is simple or compound interest, a court would probably rule that only simple interest will be charged.
Renunciation of Rights in Collateral | Canada
Renounce your rights in assets you used as collateral for a loan with this Renunciation of Rights in Collateral form, for use in Canada.
- The Notice is given by a defaulting debtor to the lender who has a security interest in the assets..
- The debtor renounces all rights it has in the collateral, and turns the collateral over to the lender, as secured party.
- This form can be used in any Canadian province or territory.
- The Canada Renunciation of Rights in Collateral template is a downloadable Microsoft Word document.
Share Pledge Agreement (Loan Security) | 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.
