Use this template to prepare a
Security Agreement securing repayment of shareholder loans for use in the Province of Ontario.
- The Agreement is between a corporation (borrower) and a secured party (a trustee acting on behalf of the shareholders).
- The borrower grants the secured party a security interest in the borrower's assets and undertaking, in order to secure its current or future indebtedness to its shareholders for shareholder advances, stock dividends or other obligations.
- The secured party holds the security interest in trust for the shareholders and may release all or part of the secured collateral as it sees fit.
- The borrower is restricted from selling, transferring, leasing or otherwise disposing of any of the collateral forming the security.
The
Ontario Security Agreement for Shareholder Loans is available as a fully editable Microsoft Word template.
