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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."
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
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
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
Banking and Financial Services
Manufacturing
Agriculture
Transportation and Logistics
Construction
Equipment Leasing
Automotive
Mining
Forestry
Commercial Real Estate
Retail
Technology Hardware
Industrial Equipment
Legal
Finance
Credit
Risk Management
Compliance
Commercial Banking
Operations
Treasury
Collections
Business Development
Document Management
Security Administration
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
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