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Chattel Mortgage Security Agreement Template for Canada

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Key Requirements PROMPT example:

Chattel Mortgage Security Agreement

"I need a Chattel Mortgage Security Agreement for my manufacturing company based in Ontario, securing a $2.5M loan against industrial equipment, with quarterly reporting requirements and specific provisions for equipment maintenance and replacement."

Document background
A Chattel Mortgage Security Agreement is essential in Canadian secured lending transactions where movable property serves as collateral. This document type is commonly used when businesses or individuals need to finance the purchase of equipment, vehicles, or other movable assets while retaining possession and use of the property. The agreement must comply with the Personal Property Security Act (PPSA) of the relevant province and other applicable Canadian laws. It contains crucial provisions regarding the security interest, collateral description, payment terms, maintenance requirements, default scenarios, and enforcement rights. The document is particularly important in commercial lending, equipment financing, and asset-based lending transactions where proper documentation of security interests is vital for protecting the lender's rights and ensuring enforceability.
Suggested Sections

1. Parties: Identification of the mortgagor (borrower/debtor) and mortgagee (lender/secured party) with full legal names and addresses

2. Background: Recitals explaining the context of the agreement, including the loan arrangement and purpose

3. Definitions: Key terms used throughout the agreement, including definitions required by PPSA

4. Grant of Security Interest: formal creation of the security interest in the collateral

5. Description of Collateral: Detailed description of the secured property as required by PPSA

6. Payment Terms: Amount secured, interest rate, payment schedule, and repayment terms

7. Representations and Warranties: Mortgagor's declarations regarding ownership, condition, and status of collateral

8. Covenants: Ongoing obligations of the mortgagor regarding maintenance, insurance, and use of collateral

9. Default Events: Circumstances constituting default under the agreement

10. Remedies: Rights and remedies of the mortgagee upon default

11. Notice Provisions: Requirements for giving notice under the agreement

12. Governing Law: Specification of applicable Canadian provincial law

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Assignment: Include when the rights under the agreement may be assigned to third parties

2. Priority Arrangements: Include when there are multiple security interests or lenders

3. Special Purpose Covenants: Include for specific types of collateral (e.g., equipment, inventory)

4. Registration Provisions: Include detailed PPSA registration requirements when needed

5. Environmental Matters: Include when collateral involves potential environmental risks

6. Cross-Default Provisions: Include when there are related agreements or loans

7. Guarantor Provisions: Include when there are third-party guarantors

Suggested Schedules

1. Schedule A - Collateral Description: Detailed description of all collateral including serial numbers, locations, and specifications

2. Schedule B - Payment Schedule: Detailed amortization schedule and payment terms

3. Schedule C - Permitted Encumbrances: List of any permitted liens or encumbrances on the collateral

4. Schedule D - Insurance Requirements: Specific insurance requirements for different types of collateral

5. Schedule E - Location of Collateral: List of all locations where collateral is or may be kept

6. Appendix 1 - Form of PPSA Financing Statement: Template or copy of PPSA financing statement to be filed

7. Appendix 2 - Additional Security Documents: Forms of any additional required security documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































Clauses






























Relevant Industries

Banking and Financial Services

Manufacturing

Agriculture

Transportation and Logistics

Construction

Equipment Leasing

Automotive

Mining

Forestry

Commercial Real Estate

Retail

Technology Hardware

Industrial Equipment

Relevant Teams

Legal

Finance

Credit

Risk Management

Compliance

Commercial Banking

Operations

Treasury

Collections

Business Development

Document Management

Security Administration

Relevant Roles

Commercial Lending Officer

Credit Manager

Legal Counsel

Finance Manager

Risk Manager

Compliance Officer

Asset Manager

Contract Administrator

Commercial Banking Officer

Security Registration Specialist

Corporate Secretary

Treasury Manager

Collections Manager

Business Development Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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