General Security Agreement Canada

The secured party may also be required to amend the financing statement if the debtor changes its name, participates in a merger, or if the debtor transfers the secured collateral to a third party and the secured party wishes to retain its collateral against the transferred assets. This includes a review by counsel of all relevant laws relating to the GSA, such as. B business financial assistance legislation that prohibits a debtor in certain provinces from providing such security unless the debtor completes certain complex financial tests. The insured party must register a notice regarding the interest of the collateral created by a GSA by filing a financing statement in the corresponding provincial personal property registry (PPR) and, possibly, under the U.S. Commercial Code or elsewhere, depending on the nature of the encumbered assets. The insured party may be required to make multiple registrations in different provinces, depending on the nature of the secured assets, where they are located, and the jurisdictions in which the debtor carries on business. Depending on the circumstances, a GSA providing rents may be registered in the PPR, in addition to the entry of the corresponding rent allowance in the cadastre. When borrowing from businesses, a GSA is usually provided by a company…