Ƶ

Asset Based Loan Agreement for Canada

Asset Based Loan Agreement Template for Canada

A comprehensive lending agreement governed by Canadian law that establishes a credit facility secured by the borrower's assets, typically including accounts receivable, inventory, and equipment. The agreement details the borrowing base calculation, advance rates, reporting requirements, and security arrangements while ensuring compliance with both federal and provincial Canadian regulations, particularly the Personal Property Security Act (PPSA) and the Bank Act. It includes specific provisions for collateral monitoring, periodic valuations, and the lender's rights regarding the secured assets.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Asset Based Loan Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Asset Based Loan Agreement?

The Asset Based Loan Agreement is a specialized financing document used when a company seeks to obtain credit facilities secured by its working capital assets and other eligible collateral. This agreement is particularly relevant in the Canadian market where businesses require flexible financing solutions based on their asset values. The document incorporates specific Canadian legal requirements, including compliance with the Personal Property Security Act (PPSA) and federal banking regulations. It establishes the framework for determining borrowing availability based on eligible assets, sets out the security structure, and includes comprehensive monitoring and reporting requirements. The agreement is commonly used by mid to large-sized companies with significant tangible assets, providing them with more flexible borrowing options compared to traditional term loans or unsecured credit facilities.

What sections should be included in a Asset Based Loan Agreement?

1. Parties: Identification of the lender, borrower, and any guarantors or other parties to the agreement

2. Background: Context of the loan arrangement and purpose of the facility

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including specific asset-based lending terminology

4. The Facility: Details of the loan facility, including type, amount, purpose, and availability

5. Borrowing Base: Definition and calculation of the borrowing base, eligible assets, advance rates, and reserves

6. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

7. Security: Description of security interests being granted over the borrower's assets

8. Representations and Warranties: Borrower's statements about its legal status, assets, and business condition

9. Covenants: Positive and negative obligations of the borrower during the term of the loan

10. Reporting Requirements: Required financial reports, borrowing base certificates, and other periodic reporting

11. Events of Default: Circumstances constituting default and consequences

12. Administration: Operational aspects including payments, interest calculations, and fee provisions

13. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law, etc.

What sections are optional to include in a Asset Based Loan Agreement?

1. Guarantees: Required when third-party guarantees are part of the credit support

2. Field Examination: Include when lender requires right to conduct periodic asset examinations

3. Cash Management: Required when implementing cash dominion or specific cash management requirements

4. Intercreditor Provisions: Include when there are multiple lenders or subordinated debt

5. Environmental Matters: Important when real property or environmentally sensitive assets are involved

6. Insurance Requirements: Detailed insurance requirements when specific coverage is crucial

7. Tax Matters: Include when cross-border or complex tax issues are involved

8. Multiple Currency Provisions: Required for facilities offering multiple currency options

What schedules should be included in a Asset Based Loan Agreement?

1. Borrowing Base Certificate: Template for periodic reporting of borrowing base calculations

2. Eligible Assets Criteria: Detailed criteria for determining eligible receivables, inventory, or other assets

3. Advance Rates: Specific advance rates applicable to different asset categories

4. Permitted Liens: List of pre-existing or permitted security interests

5. Compliance Certificate: Template for periodic financial covenant compliance reporting

6. Collateral Locations: List of locations where collateral is stored or maintained

7. Subsidiary Information: Details of borrower's subsidiaries and corporate structure

8. Required Insurance: Specific insurance requirements and minimum coverage amounts

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





















































Clauses






































Relevant Industries

Manufacturing

Wholesale Distribution

Retail

Automotive

Industrial Equipment

Agriculture

Consumer Goods

Transportation and Logistics

Warehousing

Mining

Construction

Technology Hardware

Food and Beverage

Pharmaceuticals

Relevant Teams

Finance

Treasury

Legal

Risk Management

Credit

Operations

Compliance

Commercial Banking

Asset-Based Lending

Portfolio Management

Collateral Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Credit Manager

Risk Manager

Commercial Lending Officer

Asset-Based Lending Specialist

Collateral Analyst

Corporate Lawyer

Legal Counsel

Account Manager

Portfolio Manager

Financial Controller

Operations Manager

Compliance Officer

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

Find the exact document you need

Loan Agreement With Co Maker

A Canadian-law governed loan agreement establishing terms between a lender, borrower, and co-maker, with shared repayment responsibility.

find out more

Family Loan Contract

A Canadian legal agreement formalizing monetary loans between family members, establishing terms, conditions, and repayment obligations while complying with federal and provincial laws.

find out more

Take Over Car Loan Payments Contract

A Canadian legal agreement facilitating the transfer of car loan payment obligations from an original borrower to a new borrower, outlining terms and protecting all parties' interests.

find out more

Repayment Of Debt Agreement

A Canadian-law governed agreement establishing formal terms for debt repayment, including payment schedule, interest rates, and default provisions.

find out more

Private Lending Agreement

A Canadian-law governed agreement establishing terms and conditions for a private loan between parties, including loan amount, interest, repayment terms, and security arrangements.

find out more

Pre Contract Agreement Car (Finance)

A Canadian jurisdiction preliminary agreement outlining terms and conditions for potential vehicle financing, serving as a precursor to the final finance contract.

find out more

Cellphone Loan Agreement

A Canadian-law governed agreement establishing terms and conditions for mobile device loans, including usage rights, responsibilities, and return requirements.

find out more

Car Payment Agreement Form

A Canadian legal document establishing terms and conditions for vehicle payment arrangements, including purchase details, payment schedules, and party obligations.

find out more

Agreement Between Co Signer And Borrower

A Canadian legal agreement defining the relationship and obligations between a co-signer and borrower for a loan guarantee, governed by federal and provincial laws.

find out more

Friendship Loan Agreement

A Canadian legal document formalizing a loan agreement between friends, establishing clear terms while complying with federal and provincial lending laws.

find out more

Syndicated Facility Agreement

Canadian law-governed agreement establishing terms for a syndicated loan facility provided by multiple lenders to a borrower, including loan terms, parties' rights, and obligations.

find out more

Private Loan Agreement For (Real Estate)

A Canadian-law governed agreement establishing terms and conditions for a private loan secured by real estate property, including loan terms, security arrangements, and party obligations.

find out more

Peer To Peer Lending Agreement

A Canadian-law governed agreement establishing terms and conditions for direct lending between private individuals, including loan terms, interest rates, and mutual obligations.

find out more

Revolving Credit Contract

A Canadian law-governed agreement establishing a revolving credit facility that allows for multiple draw-downs and repayments up to a specified credit limit.

find out more

Family Member Promissory Note

A Canadian legal document formalizing loan agreements between family members, establishing terms, conditions, and repayment obligations in compliance with federal and provincial regulations.

find out more

Vendor Finance Loan Agreement

Canadian-law governed agreement establishing terms for vendor-provided financing for goods or equipment purchase, including loan terms, security, and enforcement provisions.

find out more

Fixed Sum Loan Agreement Early Settlement

Canadian-law governed fixed-sum loan agreement with early settlement provisions, compliant with federal and provincial lending regulations.

find out more

Employee Loan Agreement Interest

A Canadian-law governed agreement establishing terms for an employer-provided loan to an employee, including interest rates, repayment terms, and compliance with relevant regulations.

find out more

Acknowledgement Of Debt Agreement

A Canadian legal document formally acknowledging a debt obligation and establishing repayment terms, governed by federal and provincial laws.

find out more

Construction Loan Contract

A legal agreement governing construction project financing in Canada, outlining loan terms, construction requirements, and compliance with federal and provincial regulations.

find out more

Demand Loan

A Canadian jurisdiction agreement establishing terms for a loan that can be called for repayment at any time by the lender, including amount, interest, and parties' obligations.

find out more

Home Equity Loan Agreement

A Canadian-law governed agreement establishing terms for borrowing against home equity, detailing loan conditions, security arrangements, and compliance with federal and provincial regulations.

find out more

Inter Lender Agreement

A Canadian-law governed agreement establishing priorities and relationships between multiple lenders providing financing to the same borrower.

find out more

Overagreement

Canadian master agreement establishing framework terms for ongoing business relationships and subsequent agreements.

find out more

Facility Letter Mortgage

A Canadian legal document combining credit facility terms with mortgage security requirements, setting out the conditions for property-secured lending under Canadian federal and provincial regulations.

find out more

Credit Terms Agreement

A Canadian-law governed agreement establishing credit terms between parties, including credit limits, interest rates, and payment conditions in compliance with federal and provincial regulations.

find out more

Assignment Of Loan Agreement

A Canadian legal document transferring loan rights and obligations from one lender to another, compliant with federal and provincial regulations.

find out more

Agreement Between Two Persons For Money

A Canadian-law governed agreement documenting a monetary loan between two individuals, establishing loan terms, repayment conditions, and legal obligations.

find out more

Subordinated Loan Agreement

A Canadian-law governed agreement establishing terms for a subordinated loan and its ranking below senior debt obligations.

find out more

Work Loan Agreement

A Canadian legal agreement establishing terms for an employer-provided loan to an employee, including repayment terms and employment relationship considerations.

find out more

Peer To Peer Lending Contract

A Canadian-law governed agreement establishing terms and conditions for direct lending between private individuals, including loan terms, obligations, and regulatory compliance requirements.

find out more

Letter To Borrow Money From Friend

A Canadian-compliant formal letter documenting a personal loan agreement between friends, establishing loan terms while maintaining legal validity under Canadian law.

find out more

Student Loan Agreement

A Canadian-law governed agreement establishing terms and conditions for student financial assistance, compliant with federal and provincial student loan regulations.

find out more

Simple Loan Application Form

A Canadian-compliant loan application form for collecting borrower information and required disclosures under federal and provincial lending regulations.

find out more

Private Lending Term Sheet

A Canadian-compliant document outlining key terms and conditions for a private lending arrangement, serving as the foundation for a final loan agreement.

find out more

Personal Loan Receipt

A Canadian-compliant document acknowledging receipt of a personal loan, specifying loan amount, terms, and parties' obligations.

find out more

Payday Loan Contract

Canadian payday loan agreement template compliant with federal and provincial regulations, governing short-term consumer loans with mandatory disclosures and protections.

find out more

Loan Note

A Canadian-law governed financial instrument documenting loan terms, repayment obligations, and security arrangements between lender and borrower.

find out more

Investment Loan Contract

A Canadian-law governed agreement establishing terms for an investment-purposed loan, including loan terms, investment parameters, and regulatory compliance requirements.

find out more

Facility Agreement

A Canadian law-governed agreement establishing terms for providing credit facilities, including loan terms, security arrangements, and compliance with Canadian banking regulations.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it