Document background
The Amended and Restated Loan Agreement is utilized when parties need to substantially modify an existing loan arrangement while maintaining certain aspects of the original agreement, such as security interests and registration priorities. This document type is particularly relevant in the Canadian lending landscape, where it must comply with federal legislation such as the Interest Act and Bank Act, as well as provincial security and property laws. It's commonly used in scenarios involving refinancing, changes in loan terms, or the addition of new lending facilities. The agreement consolidates all modifications and original terms into a single, comprehensive document, making it easier to administer and understand the current obligations. This approach is preferred over creating multiple amendments as it provides clarity and reduces the risk of inconsistencies between various documents.
