In the case of a commercial loan, the Bank may add a list of agreements or conditions that the borrower must meet to keep the loan in good condition. If you do not comply with the agreements, the loan is late and the bank may demand full payment. Agreements include proof of risk insurance, life insurance for the owner with the bank of which the beneficiary is a beneficiary, taxes, fees and licences. In addition, agreements can prevent the owner from doing things like. B a change of management or additional debts without authorization. 1. INTRODUCTION. This commercial and security loan agreement (“agreement”) governs your commercial loan (“loan”) from Chef Choice Equipment Rentals Inc. (“Chef Choice”). The accompanying trade and security agreement (the “complement”) and the pre-authorized loan and credit agreement (“PAD agreement”) are included as a reference and are considered part of this agreement.
Please read it and keep it for your reference. In this agreement, the terms “you,” “your” and “borrower” are the individuals or corporations who sign this agreement or in the name of which this agreement is signed. The words “Lender,” “we,” “we” and “our” mean Chef Choice Equipment Rentals Inc. or its successors and divestment recipients. All additional taxes are included in the agreement with explanatory notes and amounts. Some banks include ex ante loans or processing fees. Lenders often require a clause stating that if you do not make your payments, you are required to reimburse the lender`s fees or fees to claim or recover the debt. It is your duty to read the fine print and make sure the fees are reasonable. 4. LOANS FOR SPECIFIC PURPOSES. The proceeds of the loan requested are used exclusively for the specific purposes defined in the product certificate covered in Section 51 of this agreement. The loan should not be used for personal, family or domestic purposes.
The borrower understands and expressly recognizes that the borrower`s acceptance not to use the proceeds of the loan for personal, family or domestic purposes means that certain significant obligations imposed on businesses that grant credit for consumer or personal purposes and that certain important rights granted to consumers under federal or provincial law do not apply to the loan or this contract. The borrower also believes that the lender is unable to confirm whether the use of the loan is in accordance with this section. The borrower agrees that a violation by the borrower of the provisions of this section does not affect the lender`s right to impose (i) the borrower`s promise to pay all amounts earned under this agreement, regardless of the purpose for which the loan is actually obtained; or (ii) to use any legal recourse available to the lender, even if this remedy would not have been available if the loan had been granted for consumer or personal interest purposes. A guaranteed debt may contain a security agreement under its terms. When a security agreement lists a commercial property as collateral, the lender can file a UCC-1 return that will serve as a guarantee for the property. 20. BORROWER AND WARRANTIES REPRESENTATIONS.