Service standards loan taking
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- Acting for BDC
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- Acting For BDC and the Borrower
- Confidentiality
- Security Forms
Letter of OfferOur Letter of Offer constitutes our only loan contract and sets out our required security and the rank of registration of that security that we require you to obtain. Any change in the security requirements requires an amendment to the Letter of Offer, which the S&D Officer will prepare after the change is approved and arrange to have signed. If you recommend any change in the security, please do so in writing to the S&D Officer or instructing office and await approval in writing before making any changes. If you receive a change in instructions orally you are to confirm that change in writing back to the S&D Officer. Response TimesFeedback from BDC clients indicates concerns about the time required to complete security in many cases. While BDC appreciates that there can be any number of causes of delay outside your direct control, in an effort to avoid delays and to identify problems quickly, please adhere, as a minimum, to the following requirements: The client is to be advised of the documentation and information you require within two (2) business days of your receipt of the Instructing letter; If the client has not responded within two (2) business days of your request, follow-up by telephone is required, and advise BDC; Searches must be ordered within two (2) business days of receipt of the search data; BDC is to be advised immediately of any problems encountered in the searches; and All the documentation should be submitted only when the file is complete. If you cannot complete the security within forty-five (45) days of the date of the Instructing Letter, advise BDC. Acting for BDCContact SolicitorBDC will direct its loan taking work to a Solicitor in a firm who will be responsible for the relationship with BDC and conduct of BDC loan taking files in that firm for that city or province (the “Contact”). Where a firm has offices in more than one city, there may be different Contacts named by BDC for different cities. Instructing Letters for loan taking work going to that firm will normally be directed to the Contact. If instructions are to be sent directly to another solicitor in that firm the written approval of the Contact is required. DelegationRegular Loan Taking (loans for $10M or less) - The Contact may delegate all or part of the legal work to other professionals in their firm to limit costs or satisfy client preferences provided that the delegated professional satisfies BDC’s requirements for errors and omissions insurance. The Contact may engage legal professionals of their choice in other jurisdictions as necessary for searches, registration or security completion. Involvement of professionals at a higher hourly rate requires the approval of the S&D Officer. Loans where the loan amount is over $10,000,000 – The Contact has been selected for their personal skill and qualities and must remain in active control of all files instructed. They may delegate parts of the work to other professionals in the firm or agents at the same or lower hourly rate, as they feel appropriate within this limitation. The Contact may engage the services of legal professionals of their choice in other jurisdictions as necessary for searches, registration or security completion. Use of another professional or agent at a higher hourly rate requires the approval of the S&D Officer. Acting For BDC and the BorrowerThis is not permitted on loans over $3,000,000 without the consent of internal BDC Counsel. It is permitted on loans under that amount if there is clearly no conflict. InsuranceYou will maintain per claim errors and omissions insurance in an amount at least equal to the amount of any loan instructed to you. ConfidentialityBDC owes its clients an obligation of confidentiality as set out in section 37 of the Business Development Bank of Canada Act and you are required to keep the borrower’s and guarantor’s information confidential beyond such release as is necessarily permitted for the loan security taking process. 37.(1) Subject to subsection (2), all information obtained by the Bank in relation to its customers is privileged and a director, officer, employee or agent of, or adviser or consultant to, the Bank must not knowingly communicate, disclose or make available the information, or permit it to be communicated, disclosed or made available. (2) Privileged information may be communicated, disclosed or made available (a) for the purpose of the administration or enforcement of this Act and legal proceedings related to it; (b) for the purpose of prosecuting an offence under this Act or any other Act of Parliament; (c) to the Minister of National Revenue solely for the purpose of administering or enforcing the Income Tax Act or the Excise Tax Act; or (d) with the written consent of the person to whom the information relates. Security FormsYou will use the standard BDC forms available on the Internet – www.bdc.ca/forms (English forms) or http://www.bdc.ca/formulaires (French forms). If it is necessary to use a different form where a standard BDC form of that type is available you must obtain the prior consent of internal BDC Counsel. Tip Sheets – some forms come with a disposable coversheet with specific instructions as to the use or completion of that form. These coversheets constitute instructions. Modification of Forms – The standard BDC forms should not generally require modification but if you feel it is necessary to make minor changes in order to provide valid, effective and enforceable security you may make those changes but must advise as to the particulars and nature of those changes in your Solicitor’s Report. Any substantial changes to our security forms must be approved by BDC’s Legal Services department prior to disbursement, accompanied by the particulars of the changes and your opinion as to how these changes affect BDC’s required security. Priority Agreements – Although there is a priority agreement in the package of standard BDC documents its use is not mandatory (subject to the following bullet point) as the circumstances of loans vary widely and we look to you to use such forms and wording as you feel appropriate to put BDC in the required priority position. You do not have to comment in your report on changes to that form, if any. Priority/Subordination Agreements must not contain standstill or other enforcement restrictions that are operative against BDC unless such are specifically approved in the Letter of Offer, approved by written instruction from BDC Legal or approved by amendment to the Letter of Offer for the relevant loan. BDC and RBC have agreed upon three forms of priority agreement to be used on loans involving mutual customers. Form A contemplates that RBC will have priority over inventory and accounts receivable, with BDC having first priority over the remainder of the borrower’s personal property. Form B contemplates that RBC will have priority over inventory, accounts receivable and specific listed equipment, with BDC having first priority over the remainder of the borrower’s personal property. Form C contemplates that BDC will only have first priority over specific listed equipment, with RBC having first priority over the remainder of the borrower’s personal property. If you are instructed on a loan where RBC is the other lender, you should use the applicable form. The forms are available with the other standard BDC forms available on the Internet. Other Forms – If forms other than those standard forms provided by BDC are required we expect you to prepare such forms. 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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