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Loan Origination Agreement Template for Canada

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Key Requirements PROMPT example:

Loan Origination Agreement

I need a Loan Origination Agreement for a CAD $5 million commercial real estate loan between ABC Bank and XYZ Development Corp., with quarterly repayments over 10 years, including specific environmental compliance clauses for the Ontario market.

Document background
The Loan Origination Agreement serves as the primary documentation for establishing a lending relationship between financial institutions and borrowers in Canada. This agreement is essential when initiating new loans, whether for commercial, real estate, or other financing purposes. The document must comply with Canadian federal legislation such as the Interest Act and Bank Act, as well as provincial regulations governing lending practices. A properly structured Loan Origination Agreement includes all necessary terms, conditions, and disclosures required by Canadian law, while also providing clear documentation of the parties' rights and obligations. It is typically used at the commencement of a new lending relationship or when restructuring existing loan arrangements, and forms the foundation for all subsequent loan documentation and security agreements.
Suggested Sections

1. Parties: Identifies and defines the Lender and Borrower with full legal names and addresses

2. Background: Explains the context of the loan agreement and the parties' intention to enter into the lending relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest Rate and Calculations: Details the interest rate, calculation method, and compliance with Interest Act requirements

6. Repayment Terms: Outlines payment schedule, amounts, and methods of payment

7. Security: Describes any collateral or security interests being granted to secure the loan

8. Conditions Precedent: Lists conditions that must be satisfied before the loan is advanced

9. Representations and Warranties: States the facts and assurances provided by the Borrower

10. Covenants: Details ongoing obligations of the Borrower during the loan term

11. Events of Default: Defines circumstances that constitute default and consequences

12. Remedies: Outlines the Lender's rights and remedies upon default

13. General Provisions: Contains standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Guarantees: Include when there are third-party guarantors for the loan

2. Insurance Requirements: Include when specific insurance coverage is required for collateral

3. Syndication Provisions: Include for loans that may be syndicated or participated

4. Environmental Matters: Include when real property is involved or environmental risks are relevant

5. Tax Provisions: Include when special tax considerations apply or tax gross-up is required

6. Currency Provisions: Include when loan or payments involve multiple currencies

7. Registration Rights: Include when security interests need to be registered under PPSA

8. Cross-Default Provisions: Include when the loan is part of a larger credit relationship

Suggested Schedules

1. Schedule A - Loan Terms: Detailed breakdown of loan amount, interest rate, payment schedule, and fees

2. Schedule B - Repayment Schedule: Amortization table showing payment dates and amounts

3. Schedule C - Security Documents: List and copies of all security documentation

4. Schedule D - Conditions Precedent Documents: Checklist of required documentation prior to advance

5. Schedule E - Permitted Liens: List of pre-existing liens or encumbrances allowed under the agreement

6. Appendix 1 - Compliance Certificate: Template for periodic compliance certification

7. Appendix 2 - Notice of Borrowing: Standard form for requesting loan advances

8. Appendix 3 - Calculation of Interest Rate: Detailed methodology for interest calculations and adjustments

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































Clauses






































Relevant Industries

Banking & Financial Services

Commercial Real Estate

Corporate Finance

Small Business Services

Mortgage Lending

Equipment Financing

Construction & Development

Manufacturing

Agriculture

Private Equity

Asset-Based Lending

Commercial Banking

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Commercial Banking

Loan Operations

Treasury

Documentation

Underwriting

Risk Management

Relevant Roles

Chief Financial Officer

Commercial Lending Officer

Credit Risk Manager

Loan Officer

Corporate Counsel

Legal Counsel

Finance Director

Treasury Manager

Credit Analyst

Compliance Officer

Banking Relationship Manager

Loan Administrator

Commercial Banking Officer

Risk Assessment Manager

Documentation Specialist

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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