Deed Of Charge And Assignment Template for Canada

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Key Requirements PROMPT example:

Deed Of Charge And Assignment

"I need a Deed of Charge and Assignment for a Canadian manufacturing company granting security over its equipment, inventory, and receivables to secure a CAD 5 million term loan facility, with the security to become effective by March 1, 2025."

Document background
The Deed of Charge and Assignment is a fundamental security document in Canadian commercial finance, used when a party needs to grant security interests over assets to secure financial obligations. This document is particularly relevant in contexts ranging from corporate financing to project finance, where lenders require robust security over various types of assets. The deed must comply with both federal and provincial Canadian legislation, including the Personal Property Security Act (PPSA) and other relevant securities and property laws. It typically includes comprehensive provisions covering the creation of security, representations about the charged assets, covenants regarding asset maintenance, and enforcement mechanisms. The document is structured to create effective security interests that can be properly registered and enforced under Canadian law, making it essential for secured lending transactions.
Suggested Sections

1. Parties: Identification of the Chargor (entity granting the security) and the Chargee (entity receiving the security)

2. Background: Context of the security arrangement, including reference to any underlying facility or obligation being secured

3. Definitions: Definitions of key terms used throughout the deed, including description of Charged Property and Secured Obligations

4. Creation of Security: Fixed and floating charges, assignments, and other security interests being created over the assets

5. Secured Obligations: Detailed description of the obligations being secured by the charge and assignment

6. Representations and Warranties: Chargor's confirmations regarding ownership, capacity, and status of the charged assets

7. Covenants: Positive and negative obligations of the Chargor regarding the charged assets and maintenance of security

8. Enforcement: Rights and remedies of the Chargee upon default, including appointment of receivers

9. Power of Attorney: Appointment of the Chargee as attorney to perfect or enforce security

10. Further Assurance: Obligation to execute further documents and take additional steps to perfect security

11. Notices: Process and requirements for giving notices under the deed

12. Assignment and Transfer: Rights and restrictions regarding transfer of rights under the deed

13. Governing Law and Jurisdiction: Specification of applicable law and courts having jurisdiction

14. Execution: Formal execution blocks meeting requirements for a deed

Optional Sections

1. Currency Provisions: Required when secured obligations are in multiple currencies or foreign currency

2. Intellectual Property Provisions: Required when charge includes patents, trademarks, or other IP rights

3. Real Property Provisions: Required when security includes real estate or fixtures

4. Insurance Provisions: Required when specific insurance requirements apply to charged assets

5. Bank Account Provisions: Required when charge includes bank accounts or requires account control

6. Priority Arrangements: Required when there are multiple security holders and priority needs to be established

7. Trust Provisions: Required when security is held on trust for multiple beneficiaries

8. Cross-Border Provisions: Required when assets or parties are in multiple jurisdictions

Suggested Schedules

1. Schedule 1 - Charged Property: Detailed description of all assets subject to the charge and assignment

2. Schedule 2 - Secured Obligations: Detailed description of all obligations being secured

3. Schedule 3 - Properties: List and details of any real property included in the security

4. Schedule 4 - Intellectual Property: List of specific IP rights included in the security

5. Schedule 5 - Bank Accounts: Details of specific bank accounts subject to the charge

6. Schedule 6 - Forms of Notice: Template notices for perfecting assignments of key contracts or rights

7. Schedule 7 - Existing Security: Details of any permitted existing security over the charged assets

8. Schedule 8 - Registration Requirements: Specific registration requirements for different types of charged assets

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 and Financial Services

Real Estate

Manufacturing

Technology

Energy and Resources

Infrastructure

Healthcare

Retail

Agriculture

Transportation and Logistics

Mining

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit

Security Administration

Asset Management

Operations

Company Secretariat

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Security Trustee

Loan Officer

Credit Manager

Risk Manager

Commercial Banking Manager

Corporate Banking Director

Asset Manager

Property Manager

Company Secretary

Compliance Officer

Financial Controller

Transaction Manager

Portfolio Manager

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

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