Notice of Interest in Collateral | Canada

Transfer a life insurance policy to a lender as collateral for a loan with this Assignment of Life Insurance Policy form.

Life insurance can be used as a financial asset during your lifetime. If the policy allows for it, the insurance can be used as collateral for a loan, which gives the lender a claim against the policy's cash value if the borrower defaults in repayment.

Assignee's (Lender's) Rights

The assignee (lender) has the sole right to collect any proceeds payable under the policy. The assignee is also at liberty to surrender the policy and receive any distributions, dividends or surplus.

Assignor's (Borrower's) Rights

The assignor (borrower) retains the right to collect disability benefits, designate or change beneficiaries, and elect for optional settlement.

Format and Legal Applicability

The Assignment of Life Insurance Policy form is a generic legal template in MS Word format. It makes no specific references to the laws of any country and can be used almost anywhere.

Recoup money owed to you by a debtor from a sale of assets by serving this Canada Demand for Satisfaction from Proceeds of Sale on the party selling the collateral.

• The demand is given by a secured party to another secured party who is undertaking a sale of a debtor's assets.
• The party making the demand has no security interest in the items being sold, but is owed money under a loan agreement, mortgage, etc. by the debtor whose assets are being sold.
• This legal form can be used in any Canadian province or territory.
• This form is available as a downloadable MS Word document.

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.