Loan Pledge Agreement Template for Canada

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Loan Pledge Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

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.

Document background
The Loan Pledge Agreement is a crucial document in secured lending transactions under Canadian law, combining elements of both a loan agreement and a security agreement. It is typically used when a borrower seeks financing while offering specific assets as collateral to secure the loan obligations. The agreement must comply with federal banking regulations and provincial secured transactions laws, particularly the Personal Property Security Act (PPSA) in common law provinces. This document is essential in various commercial contexts, from traditional asset-based lending to complex financial transactions involving securities or investment assets. The agreement includes detailed provisions regarding the loan terms, description of pledged assets, perfection requirements, enforcement mechanisms, and the parties' respective rights and obligations. It serves as both the primary loan documentation and the security document, streamlining the documentation process while ensuring comprehensive protection for the lender's interests.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Investment Management

Commercial Lending

Asset-Based Financing

Securities & Investment

Corporate Finance

Private Equity

Real Estate Finance

Manufacturing

Retail

Technology

Infrastructure

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Secretariat

Investment

Banking Operations

Securities Administration

Collateral Management

Transaction Management

Relevant Roles

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

Industries
Personal Property Security Act (PPSA): Provincial legislation governing creation, registration, and enforcement of security interests in personal property. Crucial for properly documenting the pledge and ensuring the security interest is properly perfected.
Bank Act: Federal legislation governing banking operations in Canada. Relevant for loans involving banks and specific provisions related to bank security.
Interest Act: Federal legislation governing interest rates and their disclosure in loan agreements. Essential for ensuring compliance with interest rate calculations and disclosure requirements.
Criminal Code (Section 347): Federal criminal law provisions regarding criminal interest rates (currently set at 60% annual effective rate). Must be considered to ensure the loan terms do not violate criminal usury provisions.
Provincial Consumer Protection Act: If the loan is to a consumer (rather than commercial), provincial consumer protection laws must be considered for mandatory disclosure requirements and consumer rights.
Securities Act: If the pledge involves investment securities, provincial securities laws must be considered for proper transfer and registration of security interests in securities.
Bankruptcy and Insolvency Act: Federal legislation that affects creditor rights and the enforcement of security interests in the event of borrower insolvency.
Provincial Property Law: General property law principles affecting the nature and transfer of property rights, relevant for the underlying collateral being pledged.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Loans With Debt Agreement

A Canadian-law governed agreement establishing loan terms and debt management provisions, incorporating federal and provincial lending requirements.

find out more

Cash Management Agreement With Financial Institutions

A Canadian-law governed agreement establishing terms for cash management services between a financial institution and corporate client.

find out more

Legal Financial Agreement Between Two Parties

Canadian-compliant financial agreement template establishing legal and financial obligations between two contracting parties.

find out more

Loan Agreement Between Two Individuals

A Canadian-compliant loan agreement between private individuals, establishing lending terms and conditions under federal and provincial laws.

find out more

Finance Lease Agreement

A Canadian law-governed agreement establishing terms for a finance lease arrangement, including payment terms, maintenance obligations, and security interests under PPSA.

find out more

Loan For Use Agreement

A Canadian legal agreement establishing terms for temporary, no-cost use of property, detailing usage rights, maintenance obligations, and return conditions.

find out more

Debt Agreement Loans

A Canadian-law governed agreement establishing the terms and conditions for a loan between a lender and borrower, including loan amount, interest, repayment terms, and security arrangements.

find out more

Contract For Personal Loan

A Canadian-law governed agreement establishing terms and conditions for a personal loan, including loan amount, interest rate, and repayment terms.

find out more

Car Loan Agreement Between Family

A Canadian-law governed agreement documenting a car loan between family members, including loan terms, security interests, and repayment conditions.

find out more

Bridge Facility Agreement

A Canadian-law governed temporary financing arrangement providing interim funding until permanent financing can be secured, subject to federal and provincial banking regulations.

find out more

Lease Purchase Agreement Car

A Canadian legal agreement establishing terms for vehicle leasing with a purchase option, combining lease and sale elements under Canadian provincial and federal regulations.

find out more

Jewelry Loan Agreement

A Canadian-law governed agreement establishing terms for a loan secured by jewelry collateral, including security interests, loan terms, and collateral handling provisions.

find out more

Forbearance Agreement Loan

A Canadian legal agreement where a lender agrees to temporarily postpone enforcement actions against a defaulted borrower, subject to specific conditions and modifications of the original loan terms.

find out more

Royalty Loan Agreement

A Canadian-law governed agreement combining loan financing with revenue-based royalty payments, establishing terms for capital provision and ongoing revenue-share payments.

find out more

Loan Agreement Between Friends

A Canadian-compliant loan agreement template for documenting financial arrangements between friends, including loan terms, repayment schedules, and legal obligations.

find out more

Loan Pledge Agreement

A Canadian-law governed agreement establishing a loan arrangement secured by pledged assets, compliant with federal banking laws and provincial PPSA requirements.

find out more

Car Finance Agreement

A Canadian-compliant legal agreement establishing terms and conditions for vehicle financing, including payment obligations, security interests, and regulatory requirements.

find out more

Subordinate Loan Agreement

A Canadian-law governed agreement establishing terms for a subordinated loan, ranking junior to the borrower's senior debt obligations.

find out more

Loan Agreement Contract

A Canadian-law governed agreement establishing the terms and conditions of a loan between lender and borrower, including loan amount, interest, repayment terms, and security arrangements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.