Document background
The Secured Loan Agreement is a fundamental financing document used when a lender provides funding to a borrower with specific assets pledged as collateral. This agreement is essential in Canadian business transactions where security is required to support financing arrangements. It must comply with Canadian federal banking and interest rate regulations, as well as provincial secured transaction laws, particularly the Personal Property Security Act (PPSA). The document is typically used for business loans, asset financing, real estate transactions, and other scenarios where the lender requires security for the borrowed funds. It includes detailed provisions about the loan terms, security arrangements, representations and warranties, covenants, events of default, and enforcement mechanisms. The agreement serves to protect both the lender's security interest and the borrower's rights while ensuring clarity in the lending relationship.
