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Loan Pledge Agreement
I need a Loan Pledge Agreement for a CAD 5 million corporate loan to be secured by publicly traded securities, with quarterly interest payments and a maturity date of March 15, 2025; the agreement should include provisions for automatic margin calls if the collateral value drops below 150% of the loan amount.
1. Parties: Identification of the lender(s) and borrower(s)/pledgor(s)
2. Background: Context of the loan and pledge arrangement, including purpose of the loan and nature of the security relationship
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Loan Terms: Principal amount, interest rate, payment schedule, and other core loan terms
5. Pledge and Security Interest: Description of pledged assets and creation of security interest
6. Representations and Warranties: Statements of fact by the pledgor regarding ownership, authority, and status of pledged assets
7. Covenants: Ongoing obligations of the pledgor regarding maintenance and preservation of collateral
8. Perfection Requirements: Steps required to perfect the security interest and maintain perfection
9. Rights and Obligations: Detailed rights of the lender and obligations of the pledgor regarding the collateral
10. Events of Default: Circumstances constituting default and consequences thereof
11. Enforcement Rights: Lender's rights and remedies upon default
12. Notices: Communication requirements and contact details
13. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
14. General Provisions: Standard boilerplate provisions including amendments, assignment, and severability
1. Security Account Provisions: Required when pledge involves financial securities or accounts
2. Income and Distributions: Needed when pledged assets generate income or distributions
3. Voting Rights: Required for pledges involving corporate securities with voting rights
4. Insurance Requirements: Needed when pledged assets require insurance coverage
5. Third Party Rights: Required when there are existing third-party interests in the collateral
6. Currency Provisions: Needed for cross-border transactions or multiple currency handling
7. Agent Provisions: Required in syndicated loans with a security agent
8. Subordination Provisions: Needed when there are multiple secured creditors
9. Tax Provisions: Required when tax implications affect the pledge arrangement
1. Schedule A - Description of Pledged Assets: Detailed description and identification of all pledged collateral
2. Schedule B - Perfection Requirements: Specific steps and documents required for perfection of security interest
3. Schedule C - Form of Notice of Pledge: Template for notifying relevant third parties of the pledge
4. Schedule D - Existing Encumbrances: List of pre-existing liens or encumbrances on the collateral
5. Schedule E - Interest Calculation Methods: Detailed explanation of interest calculations and methodologies
6. Appendix 1 - Required Forms: Standard forms for various notices and certificates required under the agreement
7. Appendix 2 - Security Account Details: Details of security accounts where applicable
8. Appendix 3 - Compliance Certificate: Form of periodic compliance certification by pledgor
Authors
Account Bank
Applicable Law
Authorized Representative
Business Day
Calculation Date
Collateral
Control Agreement
Default
Default Rate
Enforcement Event
Event of Default
Financial Indebtedness
Governmental Authority
Income
Interest Payment Date
Interest Period
Interest Rate
Law
Lender
Lien
Loan
Loan Documents
Material Adverse Effect
Maturity Date
Notice
Obligations
Permitted Encumbrances
Pledge
Pledged Assets
Pledged Securities
Pledgor
PPSA
Principal Amount
Proceeds
Registered Office
Relevant Jurisdiction
Secured Obligations
Secured Parties
Security
Security Interest
Security Period
Taxes
Transaction Documents
Voting Rights
Working Day
Definitions
Loan Terms
Interest
Security Interest
Pledge Creation
Collateral Description
Representations and Warranties
Affirmative Covenants
Negative Covenants
Financial Covenants
Perfection Requirements
Registration and Filing
Control Provisions
Voting Rights
Income and Distributions
Further Assurance
Events of Default
Enforcement Rights
Remedies
Power of Attorney
Assignment and Transfer
Amendments and Waivers
Notices
Costs and Expenses
Indemnification
Set-off Rights
Confidentiality
Severability
Governing Law
Jurisdiction
Dispute Resolution
Force Majeure
Entire Agreement
Counterparts
Banking & Financial Services
Investment Management
Commercial Lending
Asset-Based Financing
Securities & Investment
Corporate Finance
Private Equity
Real Estate Finance
Manufacturing
Retail
Technology
Infrastructure
Legal
Finance
Treasury
Risk Management
Compliance
Credit
Corporate Secretariat
Investment
Banking Operations
Securities Administration
Collateral Management
Transaction Management
Chief Financial Officer
Treasury Manager
Legal Counsel
Corporate Lawyer
Finance Director
Risk Manager
Credit Manager
Compliance Officer
Investment Manager
Corporate Secretary
Banking Relationship Manager
Security Trustee
Loan Officer
Transaction Manager
Portfolio Manager
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