Document background
The Loan Modification Agreement is essential in Canadian lending practices when parties need to alter the terms of an existing loan arrangement. It is commonly used during financial hardship, refinancing, or when business conditions necessitate loan restructuring. This document must comply with Canadian federal legislation including the Bank Act and Interest Act, as well as provincial regulations governing secured transactions and consumer protection. The agreement typically includes detailed information about the original loan, specific modifications being made, and any changes to security arrangements or guarantees. It's particularly relevant in today's dynamic economic environment where loan restructuring has become increasingly common. The document serves as a crucial tool for both lenders and borrowers to formally document changes while maintaining legal compliance and protecting their respective interests under Canadian law.
