BANK FINANCING LAWYER
For bank financing matters contact our law firm at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
Bank Financing - Security - Guarantees - Refinancing - Subordination - More on Debt Financing
Canadian commercial banks, governed by the Bank Act (Canada), provide a range of financing options for business, largely dependent on the amount of risk that they perceive that they will be required to assume. For the greater risk, the more assurances and security that will be sought, to the point where they will deny the requested financing, thereby necessitating alternate sources of financing being sought outside of the realm of regulated financial institutions.
Although some bank financing is provided on an unsecured basis, this has become increasingly less common, with security being sought in the greater preponderance of bank financing. As such, property and assets of the business are typical sought, including accounts receivable, intellectual property rights, fixed assets and real estate.
The form of bank financing can range from short-form commitment letters (supported by a general security agreement), a banker's acceptance (a short-term note derived from the money-market and guaranteed by the borrowing Canadian chartered bank), letters of credit and letters of guarantee, and more complex loan agreements (which in turn are more costly). Banks are constantly aiming to insure that at the end of the day they will collect on their advance, whether this is in accordance with the negotiated payment schedule or upon that which has been secured against. Unfortunately, such security may unnecessarily hamper the business' operations, such that making those scheduled payments adverse impacts its operations and advancement.
As such, legal counsel serves an important role with any bank financing. Given that the banks have issued countless financial advancements and sought to protect themselves with well-developed contractual language, that has given rise to near iron-clan lending arrangements, that over-whelmingly favor the banks, it is important that you business understands its legal arrangements and the serious consequences that arise with not fulfilling your specific contractual obligations (and thereby default on the loan).
To learn how we can assist your business with its banking financing, contact our law firm in strict confidence, by telephone at 403-400-4092 or 905-616-8864, or via email at Chris@NeufeldLegal.com.
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Alberta's Distinctive Financing and Guarantee Arrangements: Attaining debt financing in the province of Alberta is subject to distinctive financing and guarantee arrangements that arise from the Guarantees Acknowledgment Act and the specific legal requirements imposed therefrom. With most banks and financial institutions requiring personal guarantees for corporate debt financing, these legislative requirements need particular attention and require the engagement of legal counsel. Read more. |
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Research & Development Financial Incentives in Canada and Alberta: Both the federal government and Alberta government provide financial incentives to the pursuit of research & development undertaken within the jurisdiction that run in conjunction with one another, through the Scientific Research & Experimental Development (SR&ED) federal tax incentive program and the Alberta Innovation Employment Grant (IEG). Read more. |
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Collateral Mortgage for Business Loan - Independent Legal Advice: When you pledge your property as security for a business loan, banks invariably insist on an Independent Legal Advice Certificate to ensure that you fully comprehend the significant financial risks and legal obligations you are assuming. Read more. |
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Reverse Mortgage - Independent Legal Advice: In Alberta, the requirement for Independent Legal Advice (ILA) when securing a reverse mortgage serves as a critical consumer protection mechanism designed to ensure the borrower fully comprehends the long-term financial implications of the contract. Read more. |
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Mortgage as a Non-Title Holding Spouse - Independent Legal Advice: When a mortgage (or renewal) is sought in Alberta, the requirement for a non-title holding spouse or adult interdependent partner to obtain Independent Legal Advice (ILA) is primarily rooted in the Dower Act. Read more. |
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HELOC ILA for Spouse / Adult Interdependent Partner: In Alberta, when a married individual or an adult interdependent partner seeks to register a Home Equity Line of Credit (HELOC) against their real property, the lender typically requires the non-borrowing spouse to obtain Independent Legal Advice (ILA). Read more. |
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HELOC ILA for the Elderly: Banks are exceedingly risk averse, such that if they perceive any potential for legal exposure with respect to their financial products, they have a tendency to go overboard in their efforts to protect their financial position. This includes the provision of a Home Equity Line of Credit (HELOC) to anyone that fits a pre-set criteria (i.e., elderly) for having a legal argument that they were not properly informed as to the legal risks and consequences of entering into a HELOC. Read more. |
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.