Service standards loan taking
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Security ConfirmationImmediately upon execution and registration of the security required in the Letter of Offer relating to an EL Loan, you will prepare a Security Confirmation form and send it by email to the BDC representative from the Security & Disbursement Group who instructed you on the EL Loan. The “Security Confirmation – Equipment Line Loan” form can be downloaded from our website at: [www.bdc.ca/forms]. When completing the Security Confirmation form you must check all boxes that apply to a particular loan. In general terms, we require that you indicate whether BDC has priority on the goods listed in any BDC equipment list that has been provided to you, and whether BDC has priority on all other equipment that may be financed under the EL Loan in the future. In the Security Confirmation form you must provide a list of all creditors that may have priority over BDC’s security interest in equipment. You should only list creditors with general registrations ahead of BDC, or subsequent general registrations that have priority over BDC by operation of an existing priority agreement. You are not required to provide a list of item specific registrations or serial numbered goods unless such registrations are an exact match to pieces of equipment shown on an equipment list that has been provided to you in connection with the EL Loan. Your Security Confirmation will be relied upon by our Security & Disbursement Group to prepare and obtain item specific waivers/priority agreements from the creditors that you have identified as having priority over BDC’s security interest. InsuranceYou verify insurance coverage on EL Loans in the same manner that you would for any other loan. Those requirements are set forth in the Insurance Section of these Service Standards.Solicitor’s ReportYou will issue your Solicitor’s Report and deliver the security documentation for the EL Loan as soon as possible after security is complete. This should be done regardless of whether the loan has been disbursed. Please follow the standard reporting procedures contained in these Service Standards. Solicitor’s AccountDepending on the nature of the loan, the EL Loan Program may require that BDC pay the legal costs associated with obtaining security for, and disbursing the EL Loans. The section of the Letter of Offer entitled “Legal Fees and Expenses” identifies whether the legal costs and fees are to be paid by the Borrower or BDC. Where the Letter of Offer provides that BDC is to pay the legal costs and fees, you will render a separate invoice to BDC for the costs associated with the preparation and registration of security for the EL Loan. That invoice will be paid directly by BDC and you should not deduct the costs associated with the EL Loan from any disbursement made to the borrower. Your invoice for the EL Loan should be submitted for payment to the representative of BDC’s Security and Disbursement Group who instructed you. In the event you are concurrently instructed to complete an EL Loan for which BDC is to pay the legal costs and fees and a Term Loan, you will invoice BDC for the EL Loan and deduct your fees and disbursements for the Term Loan when that loan is disbursed. If the Letter of Offer provides that the Borrower is to pay the legal costs and fees, you should recover your fees and disbursements directly from the Borrower. Unless specifically otherwise approved, BDC will not pay your account. Loan DisbursementPrior to the release of any funds to you, BDC requires notice in writing (e-mail or fax are acceptable) that the security called for in the Letter of Offer is complete, in accordance with BDC instructions. Funds will be released to you on your request, but should only be requested if you are in a position to disburse them to the client immediately. Any delay in the release of funds must be reported to the S&D Officer as early as possible. Conditions Precedent– Satisfaction of conditions precedent is generally dealt with directly between the S&D Officer and the borrower but must be satisfied prior to disbursement so you should confirm this with the S&D Officer before requesting funds. Conditions Precedent Contract Review – The Letter of Offer may require review of a lease, franchise or other agreement to be satisfactory to BDC’s lawyers or BDC’s legal advisors. We are expecting you to conduct this review and advise as to the basic outline and effect of the contract, whether it is consistent with the terms of the loan’s “Project and Financing”, security and underlying conditions and conditions precedent as set out in the Letter of Offer and if there are any unusual terms that would negatively affect the BDC’s position. Except for “Fast Track” disbursements, loans will normally be disbursed through your office and funds will be wired to you in trust. Please provide the S&D Officer with a voided trust account cheque to provide account information for the transfer. Fast Track refers to the early advance of part of the loan directly from BDC to the borrower prior to the security being completed. In this case a promissory note is taken by BDC and held temporarily until the security is complete. This is only done on some loans and may be referred to in an underlying condition in the Letter of Offer. At the time each loan disbursement is wired or otherwise delivered to your office, you will receive a covering letter from BDC that may contain additional specific instructions. In the event of a discrepancy between that letter and these instructions, that letter will govern. Any use of the borrowed funds or any request that you direct funds in a manner not in accordance with the “Project and Financing” set out in the Letter of Offer must be reported to the S&D Officer in writing immediately. Loan proceeds used to repay existing BDC loans will be applied internally by journal entry. No cheque will be issued for such amounts. 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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