Service standards loan taking
viii) Landlord’s Undertakings and Waivers of Distraint
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viii) Landlord’s Undertakings and Waivers of DistraintWe expect you to attend to obtain BDC’s standard form of waiver or undertaking as may be called for in the Letter of Offer. Some lessors however, such as federal and provincial departments and their agencies, crown corporations, some large shopping centres and corporations such as C.P. Rail have their own forms and the S&D Officer will require your assistance in assessing its suitability. ix) Loans to Corporations to be Incorporated (TBI’s)In many cases, the only document signed by the borrower that contains the terms of a particular loan is the Letter of Offer. Where a corporation, intended to be a borrower, does not exist at the time the Letter of Offer is accepted, we require a subsequent written adoption of the Letter of Offer from that corporation and its acceptance of the terms of the loan. x) Share PurchasesIn many cases, the target corporation is to be a borrower or guarantor under a loan providing funds to buy the shares of that corporation. In the event the Letter of Offer has not been signed by the company under its incumbent officers, then you must ensure that it is adopted and confirmed by the corporation by the authorized signatories at closing. xi) Alberta Guarantee Acknowledgement Act In Alberta, the Guarantee Acknowledgment Act requires all individual guarantors executing a written guarantee to appear before a lawyer to acknowledge their execution of the guarantee on the form prescribed by the Guarantee Acknowledgment Act Forms Regulation. You are required to obtain signed Guarantee Acknowledgment Act forms from all individuals giving a guarantee that is (1) executed in connection with a loan originating in Alberta or (2) executed by Alberta residents regardless of jurisdiction of loan origination. xii) Pari Passu and Asymmetric Co-Lending BDC has two different co-lending solutions, each of which involves a different form of agreement between BDC and the co-lender. The first is traditional pari passu (in which BDC takes on the same risk as its co-lender and a Pari Passu Agreement is used) and the second is asymmetric lending (in which BDC takes on more risk than the co-lender and an Intercreditor Agreement (Asymmetric Lending) is used). The letter of offer will identify which agreement is required. Both forms are available at www.bdc.ca/forms with the other BDC security forms. MORTGAGES OF LANDTaxesWhere an interest in land is mortgaged, realty taxes up to the end of the previous year and all current year’s taxes which have been billed and are due as of the date of the initial disbursement must be paid prior to initial disbursement. If the loan is being disbursed in stages over the current year, the taxes for the current year must be paid proportionally to the date of the final disbursement or at least to ascertain that the current taxes are paid in accordance to the schedules allowed by the municipalities if the last disbursement occurs after these schedules. We will rely on you to this end and do not require further documentation or certificates. Please provide confirmation in your solicitor’s report. Readvanceable MortgagesThere is no special form for a “readvanceable” mortgage. The BDC’s regular mortgage is a “readvanceable mortgage”. In Ontario, the Schedule “A” and the filed Standard Charge Terms no. 20011 cover the issues raised by the “readvanceable” mortgage. In Newfoundland, Nova Scotia and P.E.I., all readvanceable provisions are contained in the BDC’s standard mortgage document. In New Brunswick, Optional Mortgage Covenant # BDBC- 538 addresses the issues raised by the “readvanceable” mortgage. The readvanceable mortgage is intended to benefit borrowers by enabling the BDC to avoid reproducing the mortgage security in the event of future loans. However, there is no obligation on the BDC to make further loans to the borrower. Existing Readvanceable MortgagesIf the BDC already holds a readvanceable mortgage for an existing loan, the security section in the Letter of Offer for the new loan may state: “Existing first readvanceable mortgage in the principal amount of $_______ will stand as security for this loan.” We expect that you will review the existing mortgage, and amend or replace it only if necessary by reason of some apparent error or deficiency in its preparation, execution or registration, or if necessary to add additional properties. In particular, please review the existing mortgage and ensure that the total outstanding commitment by the BDC (balance outstanding on any prior loan accounts secured by the existing mortgage plus the total amount of the new loan) does not exceed the principal amount stated on the existing mortgage. The total commitment amount can be obtained from the S&D Officer. In some cases old form or irregular mortgages may have been used after introduction of the readvanceable form. The existing mortgage must be examined in all cases. We expect that you will perform the necessary subsearch of title, obtain a clear execution certificate, and obtain evidence of payment of realty taxes. If the mortgaged property is a condominium, a new status/estoppel certificate is required, unless there is an existing lender’s policy issued by First Canadian Title, Stewart Title or Chicago Title from the time of registration of the existing mortgage. Where a mortgage to another lender has been registered subsequent to our existing mortgage and prior to our supplementary loan for which you have been instructed, we will rely on your advice as to the priority of our new advance and as to whether we require a registered postponement or a priority agreement from the intervening lender to achieve the desired priority position. Refer to the mortgage in your report – You will not be responsible for any defects in preparation, execution or registration that are not patent. Any that are, should be addressed. Existing Readvanceable Mortgages – Survey ReviewIf the survey submitted at the time of the registration of the existing readvanceable mortgage is more than 10 years old at the time of the new loan, or if there has been an alteration, addition or demolition to the structure(s) shown on the survey, or if there is an existing lender’s title insurance policy issued by an insurer other than First Canadian Title, Stewart Title or Chicago Title, then we will require either a new survey, or a new lender’s title insurance policy. If there is an existing lender’s title insurance policy in favour of BDC issued by First Canadian Title, Stewart Title or Chicago Title for the existing readvanceable mortgage, a new title insurance policy is not required (see section “Surveys and Title Insurance” below in this Service Standards document). 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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