Document background
The Addendum To Loan Agreement is utilized when parties to an existing loan agreement need to modify specific terms without creating an entirely new agreement. This document is particularly relevant in situations where circumstances have changed since the original loan agreement was executed, such as modifications to payment terms, interest rates, security arrangements, or loan covenants. Under Canadian law, this document must comply with federal regulations governing banking and interest rates, as well as provincial requirements for contract modifications. The addendum typically includes clear references to the original agreement, specific modifications being made, and confirmation that unmodified terms remain in effect. It's commonly used in both commercial and personal lending contexts, requiring careful attention to both federal and provincial legal requirements to ensure enforceability.
