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Cross Collateral Agreement
"I need a Cross Collateral Agreement for a manufacturing company in Ontario that will use its equipment, inventory, and accounts receivable as security for multiple loans from TD Bank, with the agreement to be effective from March 1, 2025."
1. Parties: Identification of all parties to the agreement, including creditor(s) and debtor(s)
2. Background: Context of the agreement, including reference to existing credit facilities and security arrangements
3. Definitions: Definitions of key terms, including 'Obligations', 'Collateral', 'Security Interest', and other relevant terms
4. Cross-Collateralization: Core provision establishing that all collateral secures all obligations
5. Grant of Security Interest: Formal grant of security interest in all collateral
6. Description of Secured Obligations: Detailed description of all obligations secured by the collateral
7. Representations and Warranties: Debtor's representations regarding ownership and right to grant security interest in collateral
8. Covenants: Ongoing obligations of the debtor regarding maintenance and protection of collateral
9. Default Events: Definition of events constituting default under the agreement
10. Enforcement Rights: Creditor's rights and remedies upon default
11. General Provisions: Standard provisions including governing law, notices, amendments, and severability
1. Additional Obligors: Used when there are guarantors or additional parties providing security
2. Priority Arrangements: Include when there are multiple creditors requiring priority arrangements
3. Insurance Requirements: Detailed insurance requirements when specific collateral requires insurance coverage
4. Special Asset Provisions: Include when certain collateral requires special handling or maintenance
5. Inter-Creditor Provisions: Used when multiple creditors are involved requiring coordination of enforcement rights
6. PPSA Registration: Specific provisions regarding PPSA registration when registration requirements are complex
7. Quebec Security: Special provisions for Quebec assets subject to the Civil Code
1. Schedule A - Existing Credit Facilities: List and details of all existing credit facilities covered by the agreement
2. Schedule B - Collateral Description: Detailed description of all collateral subject to cross-collateralization
3. Schedule C - Permitted Liens: List of existing liens or encumbrances permitted under the agreement
4. Schedule D - Property Locations: List of locations where collateral is kept or registered
5. Schedule E - Intellectual Property: Details of any intellectual property included as collateral
6. Appendix 1 - Form of PPSA Financing Statement: Template or copy of PPSA financing statement
7. Appendix 2 - Security Registration Details: Details of all security registrations affecting the collateral
Authors
Additional Obligors
Applicable Law
Banking Day
Business Day
Collateral
Credit Documents
Credit Facilities
Cross-Collateralized Assets
Default
Default Rate
Encumbrance
Event of Default
Existing Security
Financial Indebtedness
Financing Statements
Governmental Authority
Guarantors
Intellectual Property Rights
Lender
Lien
Loan Documents
Material Adverse Effect
Obligations
Permitted Liens
Person
PPSA
Principal Agreements
Proceeds
Property
Related Rights
Secured Obligations
Secured Parties
Security
Security Interest
Security Period
Security Documents
Subsidiary
Taxes
Cross-Collateralization
Grant of Security Interest
Description of Collateral
Secured Obligations
Registration and Perfection
Representations and Warranties
Covenants
Further Assurance
Default
Enforcement
Power of Attorney
Priority
Assignment and Transfer
Notices
Amendments and Waivers
Severability
Governing Law
Jurisdiction
Entire Agreement
Counterparts
Survival
No Merger
Time of Essence
Indemnification
Costs and Expenses
Remedies Cumulative
Waiver of Defenses
Set-Off Rights
Termination
Banking & Financial Services
Commercial Real Estate
Manufacturing
Retail
Agriculture
Technology
Construction
Transportation & Logistics
Healthcare
Energy & Resources
Legal
Finance
Treasury
Credit Risk
Commercial Banking
Loan Administration
Security Administration
Corporate Banking
Risk Management
Compliance
Chief Financial Officer
Treasury Manager
Commercial Lending Officer
Credit Risk Manager
Legal Counsel
Loan Officer
Collateral Manager
Security Registration Specialist
Corporate Banking Manager
Risk Assessment Officer
Commercial Banking Director
Credit Administration Manager
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