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Security Assignment Agreement Template for Canada

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Key Requirements PROMPT example:

Security Assignment Agreement

"I need a Security Assignment Agreement under Canadian law to secure a $5M equipment loan for my manufacturing business, with the security to cover all equipment, related insurance policies, and proceeds, to be effective from March 1, 2025."

Document background
A Security Assignment Agreement is a critical document used in secured financing transactions where specific assets or rights are assigned as security for obligations. This document is particularly relevant in the Canadian legal context, where it must comply with both federal legislation and provincial security laws, including the Personal Property Security Act (PPSA) in common law provinces and the Civil Code in Quebec. The agreement is commonly used in various scenarios including project financing, asset-based lending, and general corporate financing where lenders require security over specific assets. It contains detailed provisions regarding the assigned assets, perfection requirements, enforcement mechanisms, and compliance with registration requirements. The document is essential for creating enforceable security interests and establishing priority rights in the assigned assets.
Suggested Sections

1. Parties: Identifies the assignor, assignee/secured party, and any other relevant parties to the agreement

2. Background: Recitals explaining the context of the security assignment and underlying obligations

3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules

4. Assignment and Grant of Security Interest: Core provision creating the security interest and describing the assigned assets

5. Secured Obligations: Defines the obligations being secured by the assignment

6. Representations and Warranties: Assignor's representations regarding ownership, authority, and status of assigned assets

7. Perfection and Further Assurances: Requirements for registrations, notices, and other perfection steps

8. Covenants: Ongoing obligations of the assignor regarding the assigned assets

9. Events of Default: Circumstances that trigger enforcement rights

10. Enforcement Rights: Powers and remedies of the secured party upon default

11. Payments and Notices: Administration of payments and notices relating to assigned assets

12. General Provisions: Standard boilerplate including governing law, notices, amendments, etc.

Optional Sections

1. Control Agreement Provisions: Required when security includes deposit accounts or investment property requiring control agreements

2. Assignment of Insurance: Used when insurance policies are part of the assigned collateral

3. Third Party Consents: Required when assignment of certain assets requires third party consent

4. Priority Arrangements: Needed when there are multiple secured parties requiring subordination or intercreditor arrangements

5. Currency Provisions: Required for cross-border transactions involving multiple currencies

6. Tax Provisions: Detailed tax provisions needed for assignments that may have significant tax implications

7. Power of Attorney: Optional provision granting secured party power to execute documents on assignor's behalf

Suggested Schedules

1. Description of Assigned Assets: Detailed description or list of assets subject to the security assignment

2. Form of Notice of Assignment: Template notice to be sent to relevant third parties regarding the assignment

3. Form of Acknowledgment: Template acknowledgment to be obtained from relevant third parties

4. Existing Security Interests: List of permitted security interests or prior charges on the assigned assets

5. Specified Accounts: Details of relevant bank accounts or securities accounts

6. Required Registrations: List of required registrations and filings in relevant jurisdictions

7. Form of Compliance Certificate: Template for periodic confirmation of compliance with agreement terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Energy and Resources

Technology

Infrastructure

Healthcare

Retail

Transportation and Logistics

Agriculture

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Secretariat

Operations

Security Administration

Collateral Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Security Trustee

Loan Officer

Credit Manager

Risk Manager

Compliance Officer

Treasury Manager

Corporate Secretary

Financial Controller

Security Administrator

Collateral Manager

Transaction 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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