Insurance Confirmation Checklist

Insurance Confirmation Checklist

The S&D Officer gives the borrower an Insurance Confirmation Checklist which the borrower can take to his insurers to simplify placing insurance. This checklist will normally not come to you but if it does, it should not be considered as a change in instructions. The insurance called for in the Insurance Confirmation Checklist should be the same as in the Letter of Offer as amended, but in the event there is a difference, we expect you to meet the requirements of the Letter of Offer rather than the Insurance Confirmation Checklist.

4. Life Insurance

5. Prior Permitted Charges on Land or Personal Property

REAL PROPERTY
Charge	Treatment
Utility easements or rights-of-way to utility companies (hydro, telephone, sewer or governments, etc.)	No action required
Under surface mineral rights in the crown or third parties
Private easements or rights-of-way for access to adjoining lot, encroachments, etc.	Charge to be postponed or loan amendment permitting priority
Governmental restriction on use of property not arising from dealings with the property owner (e.g. flood plain agreement, height restriction)	Solicitor is to advise, in writing (letter or e-mail), to the S&D Officer as to nature and effect of the charge and advise if it does or does not unreasonably affect the use or saleability of the property. If it does not, nothing further is required. If it does, commentary as to the effect is to be provided so that the BDC can assess and, if approved, prepare a loan amendment.
Governmental building approval – restricts use to particular construction may require posting of bonds, construction target dates, penalties
Developer’s building restrictions
Other covenants and restrictions
Leases of land or buildings	Lease to be postponed/discharged or loan amendment permitting priority
Non-disturbance agreement	Authorization required by loan amendment

PERSONAL PROPERTY
Charge	Treatment
Other charges only on inventory and/or receivables where we have already allowed priority to operating lender	No action required except if our loan is a sub-debt loan in which case loan amendment required to permit
Leases and conditional sales agreements of specific equipment	Solicitor is to provide list of leased/sold equipment for sign-off by Field Management level of authority
Other charges on vehicles only	Solicitor is to provide list of leased/sold equipment for sign-off by Field Management level of authority
Other charges on specific equipment or other personal property	Charge to be postponed/discharged or loan amendment permitting priority
Other general charges by Hypothec or GSA on a class of assets or all movables/personal property
Judgements, governmental or other liens and writs of execution registered in PPR

6. Searches

SEARCH	REQUIRED		SEARCH	REQUIRED
PPR/PPSA	when personal property charged		Employment Standards (wages)	No
LTO/LRO	when real property interest charged		Bank Act	where nature of business indicates and we have not subordinated our position on inventory
Real Property Tax	when land charged		Zoning	No
Company Office	yes		Revenue Canada	No
Worker’s Compensation	no		Actions / judgments	No
SST/Sales Tax	no		Condominium fees	where lot charged
			Aircraft registration with Transport Canada	where aircraft charged
Executions	when land charged		Certificate of air worthiness	Yes
			International Aircraft Registry	where applicable
Manufactured Home Registry	as applicable		Municipal by-law search	No
Canada Shipping	as applicable		Bankruptcy	No