Document background
The Loan Agreement serves as the primary documentation for lending arrangements in Canada, whether for commercial, personal, or specialized financing purposes. This document is essential when one party (the lender) agrees to provide financial accommodation to another party (the borrower) under specific terms and conditions. The agreement must comply with Canadian federal legislation, including the Interest Act and Criminal Code provisions on interest rates, as well as provincial regulations regarding security interests and consumer protection. The Loan Agreement typically includes detailed provisions on the loan amount, interest calculation, repayment schedule, security arrangements, events of default, and remedies. It's particularly important for documenting compliance with Canadian regulatory requirements, establishing clear rights and obligations of all parties, and providing a framework for the enforcement of security interests under relevant provincial Personal Property Security Acts.
