Service standards loan taking
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- Searches/Priorities–Restricted Requirements
- Company Status
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- Your Account
- Searches/Registrations
- Loan Disbursement
Document SigningWhere the borrower or guarantor wishes to sign security documents in your presence, we would request that you accommodate them rather than requiring them to engage counsel. In this case we would expect that you would have such persons sign an additional document indicating that no legal advice was sought or given, that they had the opportunity to seek other counsel, etc. Exceptions: You will be expected to require independent legal advice for a borrower or guarantor where you feel those concerns arise on the information before you. In those cases where you are not able to provide signing services internally we would expect you to have arrangements with an arm’s length law firm who would provide signing services at a reasonably modest fee. Small LoansThe Instructing Letter may identify a loan as a "Small Loan" for security taking purposes, and for which reduced requirements apply. As to Small Loans only, where there is a conflict between this section and requirements elsewhere in this document, the requirements of this section govern. Searches/Priorities–Restricted RequirementsNo searches are required including governmental lien searches, PPR searches, etc. Although the Letter of Offer requires a particular ranking of security, you are not expected to confirm priority of registration. InsuranceUnless specifically instructed otherwise, you are not expected to confirm that insurance is in place Company StatusNo opinion is required as to the corporate capacity of either the borrower or the guarantor. However, we do expect you to search the provincial corporations registry to confirm the identity and existence of the corporation. Solicitor’s ReportNo Solicitor’s Report is required. Instead, we only require your written confirmation that security has been received and registrations are completed. Loan DisbursementFunds will be disbursed to the borrower directly by BDC unless your assistance is specifically requested prior to disbursement. Prior to disbursement we will require you to submit: Written/faxed confirmation that security taking has been completed and registered; and Your final account. Your AccountYour account, when received at the same time as your confirmation that security is complete, will be paid from loan funds. Subsequent to disbursement you must collect any outstanding amount directly from the client. We require a copy of your account in all cases. Equipment Line LoansThe Instructing Letter may indicate that we have authorized an Equipment Line Loan (EL Loan). Such loans may be processed separately or concurrently with a regular term loan. An EL Loan establishes a loan facility that can be drawn upon by the borrower over a period of 12 months to facilitate the purchase of specific items of equipment. Normally the equipment purchased under the EL Loan will not be identified at the time the security is prepared and registered. However, you may occasionally receive equipment lists relating to equipment financed under an EL Loan. When that happens, you will need to assess BDC’s priority in respect of the listed equipment, as described below. As to EL Loans only, where there is a conflict between this section and requirements elsewhere in this document, the requirements of this section govern. Searches/Registrations(The special requirements for Small Loans contained elsewhere in these Service Standards, do not apply to EL Loans.)For all EL Loans, you will obtain the security called for in the Letter of Offer relating to the EL Loan and will complete all Corporate and PPR searches required in that regard. You must either register a GSA or confirm that BDC has an existing GSA that is properly registered and enforceable against the Borrower’s assets. In addition, you must specifically determine whether BDC has priority on equipment that may be financed by BDC under the EL Loan in the future. At the time that you are instructed to prepare security, you may receive a list of equipment, prepared by BDC, which is being financed in connection with an EL Loan. If so, you must not only determine whether BDC has priority on future equipment that may be financed under the EL Loan (as outlined above), but you must also complete such additional searches and registrations as are necessary, including registrations against any ‘serial numbered goods’ (as defined in applicable PPSA legislation), to confirm that BDC has a first security interest on the specific equipment shown on BDC’s list. You are not expected to negotiate priority agreements in connection with EL Loans. However, using the Security Confirmation form described below, you must provide BDC a list of all creditors that may have priority over equipment financed by BDC under the EL Loan, including both future equipment purchases and any equipment shown on BDC’s equipment list. Loan DisbursementYou will not be involved in the disbursement of EL Loans. All disbursements on EL Loans will be handled directly by BDC’s Security & Disbursement Group. Directory: documents documents -> Concept stage documents -> Concept stage documents -> The great global switch-off documents -> Nonprofit grant application documents -> The Truth about the Rwandan Genocide documents -> Annual InStructional unit plan documents -> Chaos equipment included Download 397.92 Kb. Share with your friends:
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