Products tagged with 'collateral security agreement'

Prepare a Share Pledge Agreement with No Recourse with this customizable template form for Ontario lenders.

This Share Pledge Agreement is intended to provide a lender with security from a corporate borrower in the Province of Ontario, Canada. It is compliant with the provisions of the Ontario Personal Property Security Act and is available in MS Word format.

Parties Involved

• Borrower: A corporate entity who is borrowing the funds and has issued the shares to the shareholder.
• Shareholder: The individual or entity who is pledging the shares of stock, and is a principal or stakeholder in the corporate borrower.
• Lender: The party providing the loan to the borrower.

Pledge of Shares

The shareholder pledges the shares to the lender. These shares are to be held as security for a loan that the lender is making to the borrower.

Additional Shares

The shareholder agrees to pledge any additional, substitute, or replacement shares issued in its name, ensuring that the security remains intact throughout the term of the loan.

Retention of Voting Rights and Dividends

So long as the borrower is not in default under the loan:

• the shareholder will retain the right to vote the shares that have been pledged at shareholder meetings, allowing the shareholder to continue participating in corporate decisions, and
• any dividends accruing to the shareholder will be payable to the account of the shareholder.

No Recourse Provision

In the event of a shortfall between the balance of the debt owing and any proceeds realized from dealing with the shares, the shareholder shall have no liability for such shortfall. The lender has no recourse against the shareholder for any deficiency in the repayment of the loan.

Non-Guarantee Status

The shareholder is not a guarantor, surety, or indemnifier with respect to the loan. Its only obligation is the pledge of shares as security.

Use this downloadable template to prepare a set of Standard Charge Terms for a commercial collateral mortgage under Section 9 of the Ontario Land Registration Reform Act.

• You first need to complete and file the Set of Standard Charge Terms with the Land Titles Office, which issues you a filing number.
• Each time you enter into a loan transaction with a borrower which is secured by this type of mortgage, you simply file a Form 2 Charge / Mortgage of Land which refers to this set of standard terms by filing number.
• This set of standard terms, and any addenda filed with the Form 2, will then govern the loan agreement between the parties.
• Available in MS Word format.
• For use only in the Province of Ontario, Canada.

Replace the property which is collateral for a mortgage with a different one under this Collateral Substitution Agreement.

Purpose of Agreement

This Collateral Substitution Agreement would be used by a mortgage lender in circumstances where a borrower wants to sell their mortgaged property in order to buy another property of approximately equal value.

The original real estate property is released from the mortgage, and the borrower's new property replaces the original one as collateral for the mortgage.

Original Provisions to Remain in Effect

The provisions of the original promissory note and all other loan documentation respecting the mortgage will remain in full force and effect against the borrower and the new property.

Format and Scope of Use

The Collateral Substitution Agreement is available in MS Word format and is fully editable and reusable, making it flexible and cost-effective.

This legal document is intended for use within the the United States. It does not contain any state-specific references.