Non Recourse Loan Agreement for Canada

Non Recourse Loan Agreement Template for Canada

A Non-Recourse Loan Agreement under Canadian law is a specialized financing document where the lender's recovery rights are limited exclusively to specific collateral, without recourse to the borrower's other assets. This agreement, governed by Canadian federal banking laws and provincial security legislation, establishes the terms of the loan, detailed collateral specifications, and explicit non-recourse provisions. It includes comprehensive sections on security interests, collateral maintenance requirements, default scenarios, and enforcement mechanisms, all while maintaining compliance with Canadian interest rate regulations and security registration requirements.

Your data doesn't train Genie's AI

You keep IP ownership of your information

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

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Non Recourse Loan Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Non Recourse Loan Agreement?

The Non-Recourse Loan Agreement is a sophisticated financing instrument used when parties wish to limit the lender's recovery rights solely to specific collateral, commonly employed in real estate financing, project finance, and asset-based lending scenarios in Canada. This document type is particularly relevant when borrowers seek to isolate risk to certain assets or when lenders are primarily interested in the value and cash flow of specific collateral rather than the borrower's general creditworthiness. The agreement must comply with Canadian federal banking regulations, provincial security laws, and registration requirements. It typically includes detailed provisions regarding collateral description, maintenance obligations, default scenarios, and enforcement mechanisms, while explicitly limiting the lender's recourse to the designated collateral. This structure is often used in conjunction with special purpose entities and requires careful consideration of both federal and provincial legal requirements.

What sections should be included in a Non Recourse Loan Agreement?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the loan agreement, including purpose and general structure as a non-recourse facility

3. Definitions: Key terms used throughout the agreement, including specific definitions related to collateral and non-recourse provisions

4. Loan Amount and Purpose: Specification of the principal amount and intended use of funds

5. Interest Rate and Payments: Interest rate, calculation method, payment schedule, and payment mechanisms

6. Collateral: Detailed description of the assets securing the loan and the security interest being granted

7. Non-Recourse Provisions: Explicit language limiting the lender's recourse solely to the collateral

8. Representations and Warranties: Borrower's statements regarding their authority, collateral ownership, and other material facts

9. Covenants: Ongoing obligations regarding collateral maintenance, reporting, and other borrower duties

10. Events of Default: Circumstances constituting default and triggering lender's rights against collateral

11. Remedies: Lender's rights and limitations regarding collateral enforcement upon default

12. Notices: Communication requirements and contact information for all parties

13. Governing Law: Specification of Canadian law and jurisdiction

14. General Provisions: Standard clauses including severability, amendments, and counterparts

What sections are optional to include in a Non Recourse Loan Agreement?

1. Insurance Requirements: Required when collateral must be insured; specifies coverage types and amounts

2. Environmental Matters: Include when collateral includes real estate or assets with environmental risks

3. Property Management: Required when collateral includes income-producing property

4. Construction Provisions: Include when loan proceeds will fund construction activities

5. Cross-Collateralization: Used when multiple assets secure the loan

6. Guaranty Limitations: Include when there are limited guarantees in addition to the non-recourse structure

7. Special Purpose Entity Provisions: Required when borrower must maintain SPE status

8. Cash Management: Include when loan requires specific cash flow management procedures

What schedules should be included in a Non Recourse Loan Agreement?

1. Schedule A - Property Description: Detailed legal description of real property collateral

2. Schedule B - Permitted Encumbrances: List of approved liens or encumbrances on the collateral

3. Schedule C - Payment Schedule: Detailed amortization schedule and payment terms

4. Schedule D - Insurance Requirements: Specific insurance requirements and minimum coverage amounts

5. Schedule E - Required Reports: List and description of required financial and operational reports

6. Appendix 1 - Form of Promissory Note: Standard form of note evidencing the debt

7. Appendix 2 - Security Agreement: Form of agreement creating security interest in collateral

8. Appendix 3 - Compliance Certificate: Template for periodic compliance certifications

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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Banking and Financial Services

Infrastructure

Commercial Property Development

Mining

Oil and Gas

Renewable Energy

Project Finance

Asset-Based Lending

Construction

Relevant Teams

Legal

Finance

Risk Management

Credit

Asset Management

Compliance

Treasury

Real Estate

Project Finance

Commercial Banking

Underwriting

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Risk Manager

Credit Manager

Asset Manager

Property Manager

Investment Officer

Loan Officer

Compliance Officer

Real Estate Manager

Project Finance Manager

Treasury Manager

Senior Underwriter

Portfolio Manager

Commercial Banking Officer

Industries
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

Commercial Loan Contract

Canadian-law governed agreement establishing terms and conditions for a commercial loan between a financial institution and business entity.

find out more

Soft Loan Agreement

A Canadian-law governed agreement for establishing terms of a loan with flexible or favorable conditions, typically featuring below-market rates or lenient repayment terms.

find out more

Cash Loan Simple Loan Agreement

A Canadian-compliant agreement documenting the terms and conditions of a straightforward cash loan between a lender and borrower, including principal, interest, and repayment terms.

find out more

Interest Loan Agreement

Canadian-law governed agreement establishing terms for an interest-bearing loan, including principal, interest calculations, and repayment conditions.

find out more

Intercreditor Deed

A Canadian law agreement establishing priorities and relationships between multiple creditors in a secured financing structure, governing payment rights, security interests, and enforcement procedures.

find out more

Co Financing Agreement

A Canadian-law governed agreement establishing terms for multiple lenders to jointly provide financing to a borrower, including inter-creditor arrangements and regulatory compliance requirements.

find out more

Simple Business Loan Agreement

A Canadian-law governed agreement establishing terms and conditions for a business loan, including amount, interest, repayment schedule, and security arrangements.

find out more

Royalty Financing Agreement

Canadian-law governed agreement establishing terms for funding in exchange for ongoing royalty payments, typically based on company revenue or profits.

find out more

Overfacility Agreement

A Canadian-law governed agreement establishing terms for additional credit facilities beyond existing lending arrangements, compliant with federal and provincial banking regulations.

find out more

Seller Financing Business Contract

A Canadian law-governed contract for business sale with seller-provided financing, incorporating security interests and payment terms under federal and provincial legislation.

find out more

Mortgage Loan Assumption Agreement

A Canadian legal document that enables the transfer of mortgage obligations from an existing borrower to a new party, subject to lender approval and compliance with federal and provincial regulations.

find out more

Co Borrower Loan Agreement

A Canadian legal agreement establishing terms and conditions for multiple borrowers to jointly obtain and repay a loan, with joint and several liability provisions.

find out more

Car Installment Contract

A Canadian-law governed agreement for the purchase of a vehicle through structured installment payments, establishing financing terms and security interests between buyer and seller/lender.

find out more

Vehicle Payment Plan Agreement

A Canadian-compliant financing agreement that establishes terms and conditions for vehicle purchase payments, including security interests and consumer protections under federal and provincial law.

find out more

Undertaking Loan Agreement

Canadian-law governed loan agreement with undertaking provisions, establishing terms for lending, borrower obligations, and compliance requirements.

find out more

Trade Finance Facility Agreement

Canadian-law governed agreement establishing terms for trade finance facilities between lenders and borrowers, including security arrangements and regulatory compliance requirements.

find out more

Trade Finance Agreement

Canadian-law governed agreement establishing trade finance facilities between a financial institution and commercial entity, including terms for various trade finance products and compliance requirements.

find out more

Simple Equipment Lease

A Canadian law-governed agreement establishing terms and conditions for equipment leasing between a lessor and lessee, including payment, maintenance, and liability provisions.

find out more

Simple Owner Finance Contract

A Canadian legal agreement where the property seller directly finances the buyer's purchase, combining property sale and financing terms under Canadian federal and provincial laws.

find out more

Separation Financial Agreement

A legally binding Canadian agreement detailing the complete financial arrangements between separating spouses, including asset division and ongoing obligations.

find out more

Real Estate Loan Agreement

A Canadian-law governed agreement establishing terms for real estate-secured financing, including loan conditions, security arrangements, and party obligations.

find out more

Personal Mortgage Loan Agreement

Canadian-law governed agreement between a financial institution and borrower establishing terms and security for a personal mortgage loan.

find out more

Official Loan Agreement

A legally binding loan agreement compliant with Canadian federal and provincial laws, establishing terms and conditions for formal lending arrangements.

find out more

Master Loan Agreement

A Canadian-law governed agreement establishing the framework for multiple potential loans between a lender and borrower, setting out core terms and conditions for lending facilities.

find out more

Margin Loan Agreement

A Canadian-law governed agreement establishing terms for margin lending facilities, including collateral requirements, maintenance obligations, and regulatory compliance measures.

find out more

Loan Swap Agreement

A Canadian law-governed agreement establishing terms for loan-related swap transactions between parties, including payment obligations and regulatory compliance requirements.

find out more

Loan Note Agreement

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

find out more

Loan Agreement Between Spouses

A Canadian legal agreement documenting a loan between spouses, setting out loan terms and conditions while complying with federal and provincial family law and tax requirements.

find out more

Financing Contract Agreement

A Canadian-law governed agreement establishing the terms and conditions of a financing arrangement, including loan details, security provisions, and party obligations.

find out more

Financial Agreement Between Two Parties

Canadian-law financial agreement template establishing terms and conditions for financial arrangements between two parties, incorporating federal and provincial compliance requirements.

find out more

Equipment Lease Purchase Option

A Canadian-law governed agreement establishing terms for equipment lease with a purchase option, including payment terms, maintenance requirements, and purchase option conditions.

find out more

Equipment Lease Purchase Agreement

A Canadian-law governed agreement combining equipment lease terms with a purchase option, establishing rights and obligations for both lessor and lessee.

find out more

Car Loan Agreement Between Individuals

A Canadian-law governed agreement establishing terms and security for a private car loan between individuals, including loan details and vehicle security provisions.

find out more

Business Loan Contract

A Canadian-law governed agreement establishing terms and conditions for a business loan between a lender and business borrower.

find out more

Auto Finance Contract

A Canadian-compliant contract governing vehicle financing terms between a lender and borrower, subject to federal and provincial banking and consumer protection laws.

find out more

Partnership Deed For Finance Business

A Canadian-law governed partnership agreement for establishing and operating a financial services business, incorporating relevant regulatory requirements and operational frameworks.

find out more

Owner Financing Business Contract

A Canadian legal agreement for business sales with owner financing, establishing sale terms, financing conditions, and security arrangements under federal and provincial law.

find out more

Rehabilitation Loan Agreement

A Canadian legal agreement governing the terms of a loan provided for property rehabilitation, including financing terms, construction requirements, and regulatory compliance.

find out more

Bill Of Sale Finance Agreement

A Canadian law-governed agreement combining asset sale terms with financing arrangements, securing the finance provider's interest until full payment is received.

find out more

Mortgage Loan Purchase And Sale Agreement

A Canadian-law governed agreement for the purchase and sale of mortgage loans between financial institutions, establishing terms for loan transfer and related obligations.

find out more
See more related templates

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

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

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

2 Docs LeftAccess Now