Document background
The Note and Security Agreement is a fundamental document in Canadian secured lending transactions, combining the features of a promissory note with comprehensive security arrangements. It is typically used when a lender requires collateral to secure a loan, whether in commercial financing, asset-based lending, or business expansion scenarios. The document must comply with federal legislation such as the Interest Act and provincial Personal Property Security Act requirements. It's particularly useful in situations where parties want to avoid multiple documents by combining the debt instrument and security agreement into a single, integrated document. The agreement includes essential details about the loan terms, security interests, enforcement rights, and obligations of all parties involved, while ensuring compliance with Canadian federal and provincial regulatory requirements.
