[{"data":1,"prerenderedAt":537},["ShallowReactive",2],{"document-agreement-of-movable-hypothec-without-delivery-D1131":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":37,"customDescModule":181,"customdescription":6,"mdFm":182,"mdProseHtml":536},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"AGREEMENT OF MOVABLE HYPOTHEC WITHOUT DELIVERY This Agreement of Movable Hypothec Without Delivery (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Purchaser\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Seller\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] 1. INTERPRETATION DEFINITIONS The following terms and expressions, wherever used in these presents or in any deed or agreement supplemental or ancillary thereto, unless there be something in the subject or the context inconsistent therewith, shall have the following meanings: 1.1 \"Contract\" means the Sales Contract (including the terms and conditions, warranties, description of buyer's obligations and other schedules annexed thereto) signed by Purchaser on [DATE] and accepted by Seller on [DATE] pursuant to which Seller agreed to sell and Purchaser agreed to purchase the Equipment, and which forms Schedule 1 hereto, as same may be amended, restated, renewed or replaced from time to time; 1.2 \"Equipment\" means the machinery and equipment purchased by Purchaser from Seller and more fully described in the Contract and the schedules thereto, as reproduced in Schedule 2 hereto. All capitalized terms not otherwise defined herein shall have the meaning assigned thereto in the Contract. The terms of the Contract are incorporated herein by reference and shall prevail in the event of any conflict between the terms hereof and the terms thereof. 2. OBLIGATIONS SECURED The hypothecs hereby constituted secures the performance by Purchaser of all its obligations, direct and indirect, absolute and contingent, presently due and hereafter to become due to Seller pursuant to the Contract (the \"Obligations\"). Without in any way limiting the generality of the foregoing, the Obligations include the payment by Purchaser to Seller of the purchase price for the Equipment in the amount of [AMOUNT] (the \"Purchase Price\") plus interest thereon for late payments at the rate of [%] per month or [%] per annum, which amounts shall be payable in accordance with the terms and conditions for payment contained in the Contract and incorporated herein by reference, as same may from time to time be amended or replaced. 3. HYPOTHECS 3.1 As security for the full and final performance of the Obligations, as well as for the payment of interest on overdue interest and the recovery by Seller of all costs and expenses arising from the preservation of the Equipment and the realization of the hypothec created herein, Purchaser hereby grants a movable hypothec without delivery to and in favor of Seller with respect to the Equipment to the extent of [AMOUNT], with interest thereon at the rate of [%] per annum, calculated and payable monthly, with interest on unpaid interest at the same rate and on the same terms. 3.2 As general and continuing collateral security for the performance by Purchaser of the Obligations not otherwise secured by the hypothecs created under the terms of Section 3.1, including, without limiting the generality of the foregoing, interest on all overdue interest, as well as the costs and expenses incurred by Seller in order to preserve or realize upon the Liens created and to be created from time to time under the terms hereof and all other costs and expenses related to the Obligations, Purchaser hereby hypothecates the Hypothecated Property to and in favor of Seller to the extent of an additional sum of [AMOUNT] with interest thereon at the rate of [%] per annum, with interest on overdue interest at the same rate. 4. REPRESENTATIONS AND WARRANTIES Purchaser hereby represents and warrants to Seller that: 4.1.1 Purchaser is a validly organized and subsisting corporation in good standing under the laws of [COUNTR] of its jurisdiction of incorporation, having its head office or domicile situated in [COUNTRY]; Purchaser has the necessary power and capacity to grant the hypothec hereby constituted and to bind and oblige itself as set forth in this agreement; Neither the execution, delivery and performance by Purchaser of this agreement in accordance with its terms, nor the consummation of the transaction contemplated thereby conflicts with or results in a breach of the documents of incorporation or the by-laws of Purchaser or of any provision of any contract or other instrument by which Purchaser is bound; Upon delivery of the Equipment by Seller to Purchaser, pursuant to the Contract, Purchaser alone shall hold the rights of ownership in all of the Equipment, free and clear of all priorities, hypothecs, charges or other rights existing in favor of any person other than Seller; This agreement has been duly authorized by all necessary corporate action on the part of Purchaser and duly executed and delivered by its duly authorized officers such that the obligations which it evidences are in full force and effect and constitute binding obligations of Purchaser; The Equipment shall be located at [ADDRESS], which premises are [owned by/ leased by] Purchaser; 4.1.7 All federal, [state / provincial] and other tax returns of Purchaser have been duly filed and all federal, [state / provincial] and other taxes, assessments and other governmental charges or levies upon Purchaser and any of its property, income, profits and assets, which are due and payable, have been paid. 5. COVENANTS Purchaser hereby covenants and agrees that it will: Not create, assume, incur or suffer to exist, directly or indirectly, any hypothec, priority, charge or any other right whatsoever on the Equipment other than in favor of Seller; Give Seller notice in writing of: any change in the representations and warranties made by Purchaser in Section 4; the name(s) of the insurer(s) who are party to the insurance contract(s) envisaged herein; 5.1.3 Provide Seller with any information, which the latter could reasonably require in relation to the Equipment or in Contract to verify whether Purchaser is respecting its Obligations. Purchaser shall inform Seller of any fact or event, which might have an adverse effect on the value of the Equipment or on Purchaser's financial situation; 5.1.4 At any time and from time to time, permit Seller, its officers, employees and authorized representatives to examine, inspect or evaluate the Equipment and, in this respect, will give Seller, its officers, employees and authorized representatives unrestricted access to the places where the Equipment is located; 5.1.5 Perform all acts and things and execute all documents as may be necessary to ensure that this hypothec remains effective and at all times opposable to third parties. Purchaser shall in particular execute at the request of Seller a timely notice of renewal hereof; 5.1.6 Pay, upon demand, all fees and expenses including legal, notarial and professional fees incurred from time to time by or on behalf of Seller in connection with the negotiation, preparation, delivery, publication, amendment, renewal and discharge of this agreement and in connection with the enforcement of any of Seller's rights hereunder or the recovery or conservation of the Equipment, including without limitation all costs and expenses of maintenance, operation, administration, conservation and/or collection of the Equipment and reasonable compensation for any person or firm engaged, employed or consulted by or on behalf of Seller to act in connection with the maintenance, operation, administration, conservation and or collection of any of the Equipment; 5.1",null,"Agreement of Movable Hypothec Without Delivery","10",68,"doc","https://templates.business-in-a-box.com/imgs/1000px/agreement-of-movable-hypothec-without-delivery-D1131.png","https://templates.business-in-a-box.com/imgs/250px/1131.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1131.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Production & Operations","/templates/production-operations/",{"label":20,"url":21},"Equipment Agreement","/templates/equipment-agreement/","agreement movable hypothec without delivery","Agreement of Movable Hypothec Without Delivery Template","https://templates.business-in-a-box.com/imgs/400px/1131.png",[26,16,19],{"label":27,"url":28},"Templates","/templates/",[30,31,34],{"label":27,"url":28},{"label":32,"url":33},"Legal Agreements","/templates/business-legal-agreements/",{"label":35,"url":36},"Guaranties & Collateral","/templates/guaranties-and-collateral/",[38,42,46,50,54,58,62,66,70,74,78,82,86,105,119,135,152,166],{"label":39,"url":40,"thumb":41,"extension":10},"Deed of Movable Hypothec","/template/deed-of-movable-hypothec-D982","https://templates.business-in-a-box.com/imgs/250px/982.png",{"label":43,"url":44,"thumb":45,"extension":10},"Movable Hypothec Promissory Note","/template/movable-hypothec-promissory-note-D432","https://templates.business-in-a-box.com/imgs/250px/432.png",{"label":47,"url":48,"thumb":49,"extension":10},"Movable Hypothec Long Form","/template/movable-hypothec-long-form-D284","https://templates.business-in-a-box.com/imgs/250px/284.png",{"label":51,"url":52,"thumb":53,"extension":10},"Moveable Hypothec Agreement","/template/moveable-hypothec-agreement-D990","https://templates.business-in-a-box.com/imgs/250px/990.png",{"label":55,"url":56,"thumb":57,"extension":10},"Hypothec on Movables","/template/hypothec-on-movables-D987","https://templates.business-in-a-box.com/imgs/250px/987.png",{"label":59,"url":60,"thumb":61,"extension":10},"Deed of Hypothec on Movables","/template/deed-of-hypothec-on-movables-D981","https://templates.business-in-a-box.com/imgs/250px/981.png",{"label":63,"url":64,"thumb":65,"extension":10},"Deed of Cancellation of Hypothec","/template/deed-of-cancellation-of-hypothec-D979","https://templates.business-in-a-box.com/imgs/250px/979.png",{"label":67,"url":68,"thumb":69,"extension":10},"Deed of Pledge Universality of Movable Property","/template/deed-of-pledge-universality-of-movable-property-D984","https://templates.business-in-a-box.com/imgs/250px/984.png",{"label":71,"url":72,"thumb":73,"extension":10},"Delivery Note","/template/delivery-note-D12712","https://templates.business-in-a-box.com/imgs/250px/12712.png",{"label":75,"url":76,"thumb":77,"extension":10},"Demand of Delivery","/template/demand-of-delivery-D1057","https://templates.business-in-a-box.com/imgs/250px/1057.png",{"label":79,"url":80,"thumb":81,"extension":10},"Delivery of Substituted Goods","/template/delivery-of-substituted-goods-D1096","https://templates.business-in-a-box.com/imgs/250px/1096.png",{"label":83,"url":84,"thumb":85,"extension":10},"Delivery Rejection Notice","/template/delivery-rejection-notice-D1055","https://templates.business-in-a-box.com/imgs/250px/1055.png",{"description":87,"descriptionCustom":6,"label":88,"pages":89,"size":90,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":104},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2",513,"https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":95,"description":6},"loan agreement",[97,100,103],{"label":98,"url":99},"Finance & Accounting","finance-accounting",{"label":101,"url":102},"Business Loans","business-loan",{"label":101,"url":102},"/template/loan-agreement-D417",{"description":106,"descriptionCustom":6,"label":107,"pages":89,"size":90,"extension":10,"preview":108,"thumb":109,"svgFrame":110,"seoMetadata":111,"parents":113,"keywords":112,"url":118},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":112,"description":6},"personal guarantee",[114,115,116],{"label":98,"url":99},{"label":101,"url":102},{"label":35,"url":117},"guaranties-collateral","/template/personal-guarantee-D405",{"description":120,"descriptionCustom":6,"label":121,"pages":122,"size":123,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":128,"keywords":133,"url":134},"EQUIPMENT LEASE AGREEMENT This Equipment Lease Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Lessor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Lessee\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WITNESSETH that in consideration of the mutual covenants and agreements to be performed and kept during the terms hereof and of any renewal, the Lessor and the Lessee covenant and agree as follows: LEASE The Lessor hereby leases to the Lessee and the Lessee hereby leases from the Lessor the equipment described in [SPECIFY SCHEDULE] and in all other Schedules which may hereafter be executed by the [COMPANY NAME] for the purpose of adding equipment thereto, which equipment including all original and replacement items, parts, accessories, and additions relating thereto is hereafter called the \"Equipment\". EQUIPMENT DESCRIPTION The Lessee authorizes the Lessor to complete the description of the Equipment in [SPECIFY SCHEDULE] with the insertion of serial numbers and other details specifically identifying the Equipment, such schedule to be signed by both parties hereto and form part of this Lease. WARRANTIES BY LESSEE & LESSOR The Lessee and Lessor each represents and warrants that it has the power to enter into this lease, and that this lease is properly and lawfully authorized and executed by it. LESSOR'S WARRANTIES Lessor and Lessee acknowledge that there are no other warranties, conditions, terms, representations of inducements expressed or implied statutory or otherwise, save as are expressly contained in this lease. Lessor warrants that the equipment shall be delivered to the Lessee in accordance with the specifications contained in [SPECIFY SCHEDULE]. The Lessor makes no representations with respect to the suitability of the equipment to the Lessee's operations. Lessor's warranties shall not extend to any party assigned this Lease by Lessor pursuant to Clause [NUMBER] herein. WARRANTIES BY MANUFACTURERS Any warranties, conditions or guarantees by the manufacturers or suppliers of the Equipment are theirs alone and not the Lessor's but are for the joint and several benefit of and enforcement by the Lessee and the Lessor. Any claims of the Lessee in connection with manufacturer's warranties, conditions or guarantees shall be made directly by the Lessor (but not Lessor's assignee) on behalf of the Lessee against the manufacturer or supplier only. TITLE The Lessor covenants that it has good titles to the Equipment and the Lessee acknowledges the Lessor's ownership of and title to the Equipment and covenants to defend the same against any contrary claim. TERM The term of this lease with respect to each piece of Equipment shall commence on the date of acceptance thereof by the Lessee in accordance with Clause [NUMBER] herein and shall continue for the term specified in [SPECIFY SCHEDULE] hereto. Rental payments with respect to each piece of Equipment shall commence and accrue due to the Lessor on such date of acceptance of such piece of Equipment by the Lessee. POSSESSION, LOCATION The Lessee shall take and, when not in default hereunder, retain exclusive control of the Equipment from the Lessee's location shown on [SPECIFY SCHEDULE]. The Lessee shall not change such location without the Lessor's prior written consent, which will not be unreasonably withheld. PERSONAL PROPERTY, LANDLORD'S DISTRESS The Equipment is and shall remain personal and moveable property. The Lessee shall not affix the Equipment nor permit it to be affixed so that it becomes part of realty and shall notify the Lessee's, Landlords, mortgagees, insurers and all others who may have an interest in or claim against the premises where the Equipment is to be located. Any removal from such premises shall be at the Lessee's risk and expense. IDENTIFICATION PLATES The Lessor may affix plates, tags or markings to the Equipment showing its interest therein, and the Lessee may display its name and such other information as may reasonably promote its business, such Lessee's markings shall be mutually approved by the parties. All Lessee's markings must be removed by the Lessee upon termination of the lease. ORDER, DELIVERY, INSTALLATION Order and delivery and installations of the Equipment shall be entirely at the Lessor's risk and expense and shall be arranged by the Lessor on behalf of the Lessee in a manner and upon terms and conditions according to the Lessee's written instructions and, to the extent of such instructions are not provided for, according to the Lessor's sole discretion but still at the Lessor's risk and expense. The Lessor shall not be responsible for any costs, losses or damages suffered by the Lessee arising out of or in connection with delays in or refusal to accept delivery of equipment. INSPECTION The Lessee shall inspect the equipment prior to delivery and accept or reject it. Notice of rejections shall be received in writing within [NUMBER] hours by the Lessor and in the absence thereof, the Lessee shall be deemed conclusively to have accepted the Equipment. Rejection shall only occur if the equipment is not in accordance with the specifications contained in [SPECIFY SCHEDULE] or as the result of faulty materials or workmanship. RE-DELIVERY, REMOVAL AT TERMINATION Upon termination of this lease for any reason, the Lessee shall deliver the Equipment entirely at its own expense to an address as designated by the Lessor in the same condition as received, reasonable wear and tear from proper use only accepted, within [NUMBER] days of the date of termination. Brakes and tires will show no more than [PERCENTAGE %] wear for each year of the Lease has elapsed and the trailers must have all signage and customer specified paint removed and returned to a white color. All damages from accident and abuse must be repaired prior to the termination of the Lease in a manner approved by the Lessor. RENT: OTHER PAYMENTS: NO SET-OFF The Lessee shall pay to the Lessor rental in the amount and at the times shown in Schedule \"A\" hereto. The Lessee shall pay to the Lessor on demand all other amounts becoming payable hereunder. The Lessee shall make such payments to the Lessor at the address of the Lessor shown above or as otherwise designated by the Lessor, without any set-off or reduction whatsoever for claims the Lessee may assert against the Lessor. Any payment not paid by the due date shall bear interest thereafter at [PERCENTAGE %] per month. UNCONDITIONAL PAYMENT Lessee's obligation to pay rent and other amounts hereunder shall be absolute and unconditional under all circumstances and without limiting the generality of the foregoing, shall not be affected by the following: Failure of the Equipment to perform in the manner expected by the Lessee. Damage to or destruction of the Equipment so that it is either completely beyond repair or partially so and whether or not it is economically justifiable to repair. Theft of the Equipment or part thereof irrespective of whether the Equipment was insured by the Lessee or the Equipment is uninsured. Seizure of the Equipment by a third party (including landlord or mortgages of the premises on which the Equipment is located). USE: MAINTENANCE: REPAIR The Lessee shall comply with all applicable laws, rules and regulations of government or other authority, with all manufacturer's and Lessor's published operation and maintenance instructions and specifications, and with all terms of any insurance policy in connection with the Equipment. The Lessor may inspect the state of repair of the Equipment at any reasonable time. ALTERATIONS ETC. TO EQUIPMENT","Equipment Lease Agreement","7",71,"https://templates.business-in-a-box.com/imgs/1000px/equipment-lease-agreement-D1140.png","https://templates.business-in-a-box.com/imgs/250px/1140.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1140.xml",{"title":6,"description":6},[129,131],{"label":17,"url":130},"production-operations",{"label":20,"url":132},"equipment-agreement","equipment lease agreement","/template/equipment-lease-agreement-D1140",{"description":136,"descriptionCustom":6,"label":137,"pages":138,"size":139,"extension":10,"preview":140,"thumb":141,"svgFrame":142,"seoMetadata":143,"parents":144,"keywords":150,"url":151},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[145,146,147],{"label":98,"url":99},{"label":101,"url":102},{"label":148,"url":149},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":153,"descriptionCustom":6,"label":154,"pages":8,"size":155,"extension":10,"preview":156,"thumb":157,"svgFrame":158,"seoMetadata":159,"parents":160,"keywords":164,"url":165},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[161,163],{"label":32,"url":162},"business-legal-agreements",{"label":32,"url":162},"security agreement","/template/security-agreement-D915",{"description":167,"descriptionCustom":6,"label":168,"pages":138,"size":169,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":174,"keywords":179,"url":180},"DEBENTURE PLEDGE AGREEMENT This Debenture Pledge Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Lender\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency and receipt whereof are hereby acknowledged, the parties hereto have agreed as follows: 1. [YOUR COMPANY NAME] pledges to the Lender the debenture listed in Schedule A hereto (hereinafter referred to as the \"Debenture\") to be held by the Lender, together with all renewals thereof, substitutions therefore, accretions thereto, and all income therefrom, as general and continuing collateral security and as a pledge for the payment or fulfillment of all of the indebtedness, obligations and liabilities of any kind whatever, present and future, direct or indirect, absolute or contingent, of [YOUR COMPANY NAME] to the Lender (hereinafter collectively referred to as the \"Obligations\"). 2. In the event [YOUR COMPANY NAME] fails to fulfill any of the Obligations (each of the aforementioned being separately hereinafter called an \"Event of Default\"), the Lender may enforce payment and realize upon the security of his Debenture, and with respect to the Debenture the Lender may exercise, or cause to be exercised on behalf of the Lender, all the rights and remedies of a debentureholder under that certain trust deed of hypothec, mortgage and pledge bearing formal date of [DATE] executed by [YOUR COMPANY NAME] in favor of [NAME] (the \"Trust Deed\"), without any control by Company as though the Lender was the absolute owner of the Debenture. 3. All income from the Debenture and the realization of the Debenture, after deduction of all expenses thereof, with interest on such expenses computed at the rate of [%] per annum may be held as security as aforesaid by the Lender and when the Lender deems it desirable so to do, from time to time, may be applied against any of the Obligations as the Lender deems best. 4. Whether or not an Event of Default shall exist under this Pledge Agreement, the Lender shall be considered the owner of the Debenture as regards the Trustee under the Trust Deed for all purposes of the Trust Deed. The Lender is hereby authorized to exercise all rights, remedies, powers, privileges, guarantees and recourses available to a debentureholder under the Trust Deed. 5","Debenture  Pledge Agreement",42,"https://templates.business-in-a-box.com/imgs/1000px/debenture_-pledge-agreement-D467.png","https://templates.business-in-a-box.com/imgs/250px/467.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#467.xml",{"title":6,"description":6},[175,176],{"label":98,"url":99},{"label":177,"url":178},"Raising Capital","raising-capital","debenture pledge agreement","/template/debenture-pledge-agreement-D467",false,{"seo":183,"reviewer":196,"legal_disclaimer":200,"quick_facts":201,"at_a_glance":203,"personas":207,"variants":232,"glossary":260,"clauses":297,"how_to_fill":348,"common_mistakes":389,"faqs":414,"industries":442,"comparisons":467,"diy_vs_lawyer":480,"jurisdictions":493,"related_template_ids_curated":514,"schema":523,"classification":524},{"meta_title":184,"meta_description":185,"primary_keyword":186,"secondary_keywords":187},"Agreement of Movable Hypothec Without Delivery | BIB","Free movable hypothec without delivery template for securing loans against movable assets.","movable hypothec without delivery agreement",[188,189,190,191,192,193,194,195],"movable hypothec agreement template","hypothec without delivery template","secured lending agreement movable property","movable collateral security agreement","hypothec agreement word template free","business secured loan agreement template","movable hypothec quebec","personal property security agreement template",{"name":197,"credential":198,"reviewed_date":199},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":202,"legal_review_recommended":200,"signature_required":200,"notarization_required":181},"advanced",{"what_it_is":204,"when_you_need_it":205,"whats_inside":206},"An Agreement of Movable Hypothec Without Delivery is a secured financing document in which a debtor grants a creditor a security interest over specified movable assets — such as equipment, inventory, or receivables — without physically transferring possession of those assets to the creditor. This free Word download lets you document the security interest, define the collateral, and set the rights and obligations of both parties, exportable as PDF for execution and registration.\n","Use it when a lender or creditor requires a registered security interest over a borrower's movable property as collateral for a loan or credit facility, and both parties agree the debtor will retain possession and continued use of the assets during the term. It is particularly common in Quebec civil law transactions and in cross-border commercial lending where movable property serves as the primary collateral base.\n","Identification of the debtor and creditor, a precise description of the collateral assets, the secured obligation amount and terms, registration requirements, debtor covenants for maintaining collateral, events of default, creditor enforcement rights, and governing law provisions.\n",[208,212,216,220,224,228],{"title":209,"use_case":210,"icon_asset_id":211},"Commercial lenders","Securing a business loan against a borrower's equipment or inventory without requiring physical possession","persona-lender",{"title":213,"use_case":214,"icon_asset_id":215},"Small business owners","Pledging movable assets as collateral to access working capital or equipment financing","persona-small-business-owner",{"title":217,"use_case":218,"icon_asset_id":219},"Corporate finance officers","Structuring a secured credit facility using company assets as collateral","persona-cfo",{"title":221,"use_case":222,"icon_asset_id":223},"Asset-based lenders","Documenting a revolving credit line secured against accounts receivable or inventory","persona-investor",{"title":225,"use_case":226,"icon_asset_id":227},"Legal counsel and notaries","Preparing a compliant hypothec agreement for registration under applicable personal property security legislation","persona-lawyer",{"title":229,"use_case":230,"icon_asset_id":231},"Equipment financing companies","Retaining a security interest in financed equipment while the debtor operates it in their business","persona-equipment-financier",[233,237,241,245,249,253,257],{"situation":234,"recommended_template":235,"slug":236},"Securing a loan where the creditor takes physical possession of the collateral","Agreement of Movable Hypothec With Delivery (Pledge)","agreement-of-movable-hypothec-without-delivery-D1131",{"situation":238,"recommended_template":239,"slug":240},"Securing a loan over real property such as land or buildings","Immovable Hypothec Agreement","moveable-hypothec-agreement-D990",{"situation":242,"recommended_template":243,"slug":244},"Financing equipment with the lender retaining a purchase-money security interest","Equipment Financing Agreement","financing-agreement-D877",{"situation":246,"recommended_template":247,"slug":248},"Securing a revolving line of credit against accounts receivable","General Security Agreement","security-agreement-D915",{"situation":250,"recommended_template":251,"slug":252},"Documenting a personal guarantee to support a business loan","Personal Guarantee Agreement","personal-guarantee-D405",{"situation":254,"recommended_template":255,"slug":256},"Granting a floating charge over all present and future business assets","Debenture Agreement","debenture-pledge-agreement-D467",{"situation":258,"recommended_template":259,"slug":248},"Common-law jurisdiction secured loan against personal property","Security Agreement (PPSA)",[261,264,267,270,273,276,279,282,285,288,291,294],{"term":262,"definition":263},"Movable Hypothec","A security right granted by a debtor over movable property to secure the performance of an obligation, without the creditor taking physical possession of the property.",{"term":265,"definition":266},"Without Delivery","A hypothec structure in which the debtor retains physical possession and use of the collateral assets throughout the term of the security agreement.",{"term":268,"definition":269},"Collateral","The specific movable assets — equipment, inventory, receivables, or other property — pledged by the debtor to secure the obligation owed to the creditor.",{"term":271,"definition":272},"Secured Obligation","The principal amount of the loan or credit facility, together with interest and fees, that the hypothec is created to secure.",{"term":274,"definition":275},"Grantor / Debtor","The party who owns the collateral assets and grants the security interest to the creditor as part of the financing arrangement.",{"term":277,"definition":278},"Hypothecary Creditor","The lender or creditor in whose favor the hypothec is created, entitling them to enforce against the collateral if the debtor defaults.",{"term":280,"definition":281},"Publication / Registration","The formal act of recording the hypothec in the applicable public registry — the Register of Personal and Movable Real Rights (RPMRR) in Quebec — to make it enforceable against third parties.",{"term":283,"definition":284},"Prior Claim","A statutory right of certain creditors (e.g., employees for unpaid wages, government for taxes) that ranks ahead of a registered hypothec in a priority dispute.",{"term":286,"definition":287},"Default","A triggering event — such as failure to pay, breach of covenant, or insolvency — that entitles the creditor to exercise enforcement rights against the collateral.",{"term":289,"definition":290},"Taking in Payment","A Quebec-specific enforcement remedy allowing a hypothecary creditor to acquire ownership of the collateral in full satisfaction of the secured debt, subject to court oversight.",{"term":292,"definition":293},"Subrogation","The substitution of one creditor for another in respect of a debt or security right, allowing the subrogated party to exercise the original creditor's rights against the debtor.",{"term":295,"definition":296},"Floating Charge","A security interest that attaches to a class of assets as they exist from time to time — such as all inventory — rather than identified fixed items, crystallizing into a fixed charge upon default.",[298,303,308,313,318,323,328,333,338,343],{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Identification of parties","Names the creditor and debtor with their full legal names, addresses, and corporate identifiers, establishing who holds the security and who grants it.","This Agreement of Movable Hypothec Without Delivery is entered into as of [DATE] between [CREDITOR LEGAL NAME], a [PROVINCE/STATE] [ENTITY TYPE] ('Creditor'), and [DEBTOR LEGAL NAME], a [PROVINCE/STATE] [ENTITY TYPE] ('Debtor').","Using a trade name or operating name instead of the registered legal entity name. If the debtor's registered name does not match the registration filing, the hypothec may be unpublished against the wrong entity and lose its priority against third parties.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Description of the secured obligation","States the principal amount of the loan or credit facility being secured, the interest rate, repayment schedule, and all other monetary obligations the hypothec is designed to guarantee.","The Hypothec secures the payment and performance of all obligations of the Debtor to the Creditor under the Loan Agreement dated [DATE], including principal of $[AMOUNT], interest at [RATE]% per annum, fees, and all related costs.","Describing the secured obligation too narrowly — for example, referencing only the principal amount. Future interest, fees, and enforcement costs should be expressly included or the creditor may not recover them from the collateral.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Description of collateral","Identifies the specific movable assets subject to the hypothec, with enough precision that a third party reading the registration can determine what is and is not covered.","The Hypothec is granted over all present and after-acquired [EQUIPMENT / INVENTORY / RECEIVABLES] of the Debtor described in Schedule A, including all proceeds, replacements, and accessions thereto.","Using generic descriptions like 'all business assets' without specifying the category. Overly broad descriptions may be rejected at registration or challenged by competing creditors claiming priority over specific assets.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Hypothec amount and ranking","States the monetary cap of the hypothec as registered — which may exceed the loan principal to cover interest and costs — and the agreed priority ranking relative to other charges on the same assets.","The Hypothec is granted for the sum of $[HYPOTHEC AMOUNT], bearing interest at [RATE]% per annum. The Debtor represents that the Collateral is free of prior charges except as disclosed in Schedule B.","Setting the hypothec amount equal to the loan principal only. Registration costs, default interest, and enforcement expenses routinely push the actual claim above principal — the registered amount should include a reasonable buffer.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Debtor covenants","Lists the positive and negative obligations of the debtor during the term: maintaining and insuring the collateral, not disposing of or encumbering it without consent, and notifying the creditor of material changes.","The Debtor covenants to: (a) maintain the Collateral in good repair; (b) keep the Collateral insured for full replacement value naming Creditor as loss payee; (c) not sell, transfer, or further hypothecate the Collateral without prior written consent of Creditor; and (d) notify Creditor within [5] business days of any loss, damage, or seizure of the Collateral.","Omitting the insurance requirement or not naming the creditor as additional insured or loss payee. If the collateral is destroyed and the creditor is not named on the policy, the insurance proceeds may flow to the debtor and disappear.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Events of default","Defines the specific events that trigger the creditor's enforcement rights — non-payment, covenant breach, insolvency, change of control, or material deterioration of the collateral.","Each of the following constitutes an Event of Default: (a) failure to pay any amount due within [10] days of the due date; (b) breach of any covenant that is not remedied within [30] days of written notice; (c) commencement of insolvency proceedings by or against the Debtor; (d) any attachment or seizure of the Collateral by a third party.","No cure period for technical or administrative covenant breaches. Immediate default on a minor breach can be commercially unreasonable and unenforceable in some jurisdictions — always include a notice and cure period for non-payment and covenant violations.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Creditor's enforcement rights","Sets out what the creditor may do upon default: seize and sell the collateral, appoint a receiver, take the collateral in payment, or pursue other remedies under applicable law.","Upon an Event of Default, Creditor may exercise any remedy available under the Civil Code of Quebec / applicable legislation, including: (a) taking in payment of the Collateral; (b) selling the Collateral by judicial or private sale; or (c) appointing a receiver of the Collateral.","Failing to specify whether the sale of collateral is by judicial or private sale, and omitting the required prior-notice period. Many jurisdictions mandate advance written notice to the debtor before a private sale — skipping this step can expose the creditor to damages.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Representations and warranties of the debtor","Statements of fact the debtor makes at signing — that it owns the collateral free of competing claims, has authority to grant the hypothec, and that the collateral information is accurate.","The Debtor represents and warrants that: (a) it has full legal authority to grant this Hypothec; (b) the Collateral is owned by the Debtor free and clear of all encumbrances except as disclosed; and (c) no insolvency proceedings are pending or threatened against the Debtor.","No warranty of ownership of the collateral. If a third party has a prior unregistered interest in the assets, the creditor may discover they hold a security interest over property the debtor did not fully own.",{"name":339,"plain_english":340,"sample_language":341,"common_mistake":342},"Registration and publication obligations","Addresses who is responsible for registering the hypothec in the applicable public registry, who bears the registration costs, and what happens if registration lapses or must be renewed.","The Creditor shall, at the Debtor's expense, register this Hypothec in the Register of Personal and Movable Real Rights (RPMRR) [or applicable registry] within [5] business days of execution. The Debtor shall cooperate fully and execute any further documents required to perfect and maintain the publication of the Hypothec.","No deadline for registration and no allocation of registration costs. Delays in publishing the hypothec leave the creditor unperfected against third-party creditors and trustees in bankruptcy, who take priority over an unpublished security right.",{"name":344,"plain_english":345,"sample_language":346,"common_mistake":347},"Governing law and dispute resolution","Specifies the jurisdiction whose law governs the agreement and how disputes will be resolved — whether by court, arbitration, or mediation.","This Agreement is governed by the laws of the Province of [PROVINCE] / [JURISDICTION]. Any dispute shall be submitted to the exclusive jurisdiction of the courts of [CITY/DISTRICT], except that the Creditor may seek injunctive or enforcement relief in any competent jurisdiction.","Selecting a governing law that has no real connection to where the collateral is located. Personal property security regimes are territorial — the law of the jurisdiction where the collateral is physically situated typically governs perfection and priority regardless of what the contract says.",[349,354,359,364,369,374,379,384],{"step":350,"title":351,"description":352,"tip":353},1,"Identify both parties with their full legal names","Enter the creditor's and debtor's complete registered legal names, principal addresses, and corporate registration numbers. For individuals, include government-issued ID references if required by local registration rules.","Run a corporate registry search on the debtor's entity name before drafting — a mismatch between the agreement and the registry filing is one of the most common causes of a rejected registration.",{"step":355,"title":356,"description":357,"tip":358},2,"Define the secured obligation precisely","Reference the underlying loan agreement or credit facility by date and amount. Include principal, interest rate, payment schedule, and any fees or future advances that the hypothec is intended to secure.","If the credit facility allows future advances, include a 'future advances' clause so that amounts drawn after signing are automatically covered by the existing hypothec without requiring a new agreement.",{"step":360,"title":361,"description":362,"tip":363},3,"Draft a detailed description of the collateral","Identify each category of asset by type, serial number (for equipment), or description (for inventory and receivables). Include proceeds and after-acquired property language if the hypothec is meant to cover assets acquired in the future.","Use Schedule A for the full asset list — keeping it separate from the body of the agreement makes it easier to update if the collateral changes without amending the main document.",{"step":365,"title":366,"description":367,"tip":368},4,"Set the hypothec amount and registration cap","State a registered amount that is at least 20–25% above the loan principal to cover accrued interest, default interest, and enforcement costs. Confirm this cap with the creditor's counsel before filing.","In Quebec, the registered hypothec amount is the maximum the creditor can claim from the proceeds of the collateral — underestimating it leaves enforcement costs unrecovered.",{"step":370,"title":371,"description":372,"tip":373},5,"List all debtor covenants and negative pledges","Include affirmative covenants (maintain and insure the collateral, pay taxes on it) and negative covenants (no disposal, no further encumbrance without consent). Specify the notice period for cure of any breach.","Add a specific requirement that the debtor notify you within 5 business days if the collateral is seized, damaged, or becomes the subject of any third-party claim — early notice gives you enforcement options before value deteriorates.",{"step":375,"title":376,"description":377,"tip":378},6,"Define events of default and cure periods","List specific default triggers — payment failure, insolvency, covenant breach, change of control — and assign appropriate cure periods (typically 10 days for payment, 30 days for other breaches).","Avoid a blanket 'cross-default' clause that triggers default on this hypothec whenever the debtor defaults on any other obligation, unless you are a senior secured lender with the capacity to manage concurrent enforcement.",{"step":380,"title":381,"description":382,"tip":383},7,"Specify enforcement remedies and required notices","State clearly which remedies the creditor may exercise on default, the notice period required before exercising each remedy, and whether a private or judicial sale is permitted. Reference the applicable statute.","In Quebec, creditors must give 20 days' prior notice before exercising hypothecary rights against a business debtor — build this into your enforcement timeline from the start.",{"step":385,"title":386,"description":387,"tip":388},8,"Execute and register before advancing funds","Both parties must sign the agreement, then register it in the applicable public registry before the loan is advanced. Advancing funds before registration exposes the creditor to an unperfected security interest that ranks behind any subsequently registered creditor.","Use a condition precedent in the loan agreement requiring confirmed registration before disbursement — this protects you if registration is delayed for administrative reasons.",[390,394,398,402,406,410],{"mistake":391,"why_it_matters":392,"fix":393},"Advancing funds before registering the hypothec","An unregistered hypothec is unpublished and unenforceable against third parties, including a bankruptcy trustee who can set it aside entirely, leaving the creditor as an unsecured creditor.","Make registration confirmation a condition precedent to disbursement in the loan agreement. Confirm the registration number and effective date before releasing any funds.",{"mistake":395,"why_it_matters":396,"fix":397},"Setting the registered hypothec amount equal to the loan principal only","Default interest, legal fees, and enforcement costs routinely push the creditor's actual claim 20–30% above principal. If the registered amount is insufficient, the creditor cannot recover the excess from the collateral proceeds.","Register a hypothec amount that is at least 20–25% above the principal loan amount and confirm the buffer with counsel based on the expected interest rate and loan term.",{"mistake":399,"why_it_matters":400,"fix":401},"Using a generic or vague collateral description","A description like 'all assets of the debtor' may be rejected by the registry or successfully challenged by a competing creditor who registered a more specific interest over the same assets.","Describe the collateral by category, type, and identifying details — serial numbers for equipment, invoice dates for receivables, SKU ranges for inventory — and attach a Schedule A for the full list.",{"mistake":403,"why_it_matters":404,"fix":405},"No insurance requirement naming the creditor as loss payee","If the collateral is destroyed or damaged and the creditor is not named on the insurance policy, the debtor collects the proceeds and the creditor is left with an unsecured claim against an insolvent debtor.","Require the debtor to maintain property and casualty insurance on the collateral for full replacement value, name the creditor as additional insured and first loss payee, and provide annual proof of coverage.",{"mistake":407,"why_it_matters":408,"fix":409},"Omitting a cure period for non-payment and covenant breaches","A default clause that triggers immediately on any technical breach, without notice or a cure period, may be found commercially unreasonable by a court and could expose the creditor to a wrongful enforcement claim.","Include a 10-business-day cure period for payment defaults and a 30-day cure period for other covenant breaches, each triggered by written notice from the creditor.",{"mistake":411,"why_it_matters":412,"fix":413},"Governing law that does not match the collateral's location","Personal property security regimes are territorial — a court will apply the law of the jurisdiction where the collateral is located to determine perfection and priority, regardless of the governing-law clause in the contract.","Set the governing law to the jurisdiction where the collateral is physically located and register in that jurisdiction's applicable registry. If the collateral spans multiple provinces or countries, seek advice on a multi-jurisdiction registration strategy.",[415,418,421,424,427,430,433,436,439],{"question":416,"answer":417},"What is a movable hypothec without delivery?","A movable hypothec without delivery is a security right granted by a debtor to a creditor over specified movable property — such as equipment, inventory, or receivables — as collateral for a loan or obligation, while the debtor retains physical possession and continued use of the assets. It is the civil law equivalent of a common-law security agreement or chattel mortgage and is a foundational secured lending instrument in Quebec and other civil law jurisdictions. The creditor's interest is protected by registering the hypothec in a public registry rather than by holding the assets.\n",{"question":419,"answer":420},"What is the difference between a movable hypothec with and without delivery?","A movable hypothec with delivery — commonly called a pledge — requires the debtor to physically hand over the collateral to the creditor, who holds it until the obligation is satisfied. A hypothec without delivery allows the debtor to keep and use the assets (operate equipment, sell inventory) while the creditor's security interest is published in a public registry. In commercial lending, the without-delivery structure is far more common because businesses cannot operate without access to their own assets.\n",{"question":422,"answer":423},"Where is a movable hypothec without delivery typically registered?","In Quebec, movable hypothecs are registered in the Register of Personal and Movable Real Rights (RPMRR), maintained by the Registrar of Civil Status. Registration must occur before the hypothec is enforceable against third parties — including other creditors and a bankruptcy trustee. In common-law Canadian provinces, the equivalent registration is a financing statement under the applicable Personal Property Security Act (PPSA). In the US, UCC-1 financing statements filed under Article 9 serve the same function.\n",{"question":425,"answer":426},"Who can grant a movable hypothec without delivery?","Under Quebec civil law, only a person who operates an enterprise — meaning a business or commercial undertaking — may grant a movable hypothec without delivery. Individuals who are not operating an enterprise are generally restricted to hypothecs with delivery (pledge) for movable property. This enterprise requirement is a key distinction from common-law personal property security regimes, which apply broadly to both businesses and individuals.\n",{"question":428,"answer":429},"What assets can be used as collateral under a movable hypothec without delivery?","Any movable property owned by the debtor can serve as collateral, including equipment and machinery, inventory and stock-in-trade, accounts receivable and trade claims, intellectual property, financial instruments, and the proceeds of any of the above. The hypothec can cover present assets, after-acquired assets, or a combination of both. The description of collateral in the agreement and in the registration must be sufficient to identify the assets with reasonable certainty.\n",{"question":431,"answer":432},"What happens if the debtor defaults under a movable hypothec?","Upon default, the creditor may exercise hypothecary rights — the specific remedies available under the Civil Code of Quebec include taking in payment (acquiring ownership of the collateral in satisfaction of the debt), selling the collateral by judicial or private sale, and having a receiver appointed to manage or liquidate the assets. In most cases, the creditor must give the debtor prior written notice (20 days for business debtors in Quebec) before exercising these rights. The debtor has the right to remedy the default during the notice period.\n",{"question":434,"answer":435},"Does a movable hypothec without delivery need to be notarized?","Under Quebec civil law, a movable hypothec without delivery must be executed by notarial act — that is, signed before a notary — to be valid and registrable in the RPMRR. This is a formal requirement that distinguishes it from many common-law security agreements, which require only signatures of the parties. In other jurisdictions, comparable documents may not require notarization but should be executed with appropriate formalities to ensure enforceability.\n",{"question":437,"answer":438},"How does priority work between competing hypothecs on the same collateral?","Priority among competing security interests in movable property is generally determined by the order of registration, not the order of creation. A hypothec registered first will rank ahead of one registered later, even if the later hypothec was created earlier. Certain statutory prior claims — such as claims for unpaid wages or government taxes — may rank ahead of all registered hypothecs regardless of registration date. Before granting a second-ranking hypothec, a creditor should conduct a full registry search to assess the priority landscape.\n",{"question":440,"answer":441},"Do I need a lawyer to prepare a movable hypothec without delivery?","In Quebec, a movable hypothec without delivery must be executed by notarial act, which requires the involvement of a notary. For other jurisdictions with equivalent instruments, legal review is strongly recommended given the technical requirements for collateral description, registration, and enforcement. A template provides the structural framework and standard clauses, but the specific terms — hypothec amount, collateral scope, covenants, and remedies — should be reviewed by counsel familiar with the applicable secured lending regime before execution.\n",[443,447,451,455,459,463],{"industry":444,"icon_asset_id":445,"specifics":446},"Manufacturing","industry-manufacturing","Equipment and machinery are pledged as collateral while remaining in production; the hypothec amount must account for depreciation and replacement cost over the loan term.",{"industry":448,"icon_asset_id":449,"specifics":450},"Retail and wholesale trade","industry-retail","Inventory hypothecs require careful collateral description and floating-charge language to cover stock that turns over continuously, with the creditor monitoring inventory levels against the outstanding loan balance.",{"industry":452,"icon_asset_id":453,"specifics":454},"Technology / SaaS","industry-saas","Intellectual property — software, patents, and licensing receivables — can serve as movable collateral, requiring specific IP assignment or charge language beyond standard equipment descriptions.",{"industry":456,"icon_asset_id":457,"specifics":458},"Construction and real estate development","industry-construction","Construction equipment and materials are commonly secured under movable hypothecs, with particular attention to priority conflicts with suppliers claiming retention of title or prior lien rights.",{"industry":460,"icon_asset_id":461,"specifics":462},"Healthcare","industry-healthtech","Medical equipment financing frequently uses movable hypothecs, with covenants requiring maintenance certifications and regulatory compliance to protect collateral value.",{"industry":464,"icon_asset_id":465,"specifics":466},"Agriculture","industry-agriculture","Farm equipment, livestock, and crop inventory can be pledged under movable hypothecs, with seasonal collateral value fluctuations requiring lenders to set conservative loan-to-value ratios and monitoring covenants.",[468,471,474,477],{"vs":247,"vs_template_id":469,"summary":470},"D{GENERAL_SECURITY_AGREEMENT_ID}","A General Security Agreement (GSA) is the common-law equivalent used in Canadian provinces outside Quebec and in common-law jurisdictions generally. It grants a security interest over all present and after-acquired personal property of the debtor and is registered as a financing statement under the applicable PPSA. A movable hypothec without delivery is the civil law instrument used in Quebec, governed by the Civil Code, and registered in the RPMRR. The economic effect is similar, but the formalities, registration regimes, and enforcement remedies differ significantly between the two.",{"vs":251,"vs_template_id":472,"summary":473},"personal-guarantee-D1068","A personal guarantee is a personal obligation by an individual (typically a business owner) to repay the debtor's debt if the debtor defaults — it is a promise to pay, not a security right over specific assets. A movable hypothec without delivery creates a registered property right over specific collateral that the creditor can enforce directly. Both are commonly used together: the hypothec secures the business assets while the personal guarantee provides recourse against the individual.",{"vs":121,"vs_template_id":475,"summary":476},"equipment-lease-agreement-D13210","An equipment lease grants the lessee the right to use equipment owned by the lessor in exchange for periodic payments — title never transfers. A movable hypothec without delivery is used when the debtor already owns the equipment and pledges it as security for a loan. The key distinction is ownership: the lessor retains title in a lease; the hypothec debtor owns the asset and grants only a security interest over it.",{"vs":88,"vs_template_id":478,"summary":479},"loan-agreement-D1076","A loan agreement documents the terms of the lending arrangement — principal, interest, repayment schedule, and borrower obligations. A movable hypothec without delivery is the security instrument that backs the loan by granting the creditor rights over specific collateral if the borrower defaults. The two documents work together: the loan agreement creates the debt obligation; the hypothec creates the security interest that protects the lender's recovery in the event of default.",{"use_template":481,"template_plus_review":485,"custom_drafted":489},{"best_for":482,"cost":483,"time":484},"Straightforward commercial loans secured by clearly identified equipment or receivables in a single jurisdiction, where the lender has prior experience with movable hypothec registrations","Free","1–2 hours to draft, plus registration time",{"best_for":486,"cost":487,"time":488},"Any transaction involving Quebec notarial requirements, multi-asset collateral, or borrowers with existing encumbrances on the collateral","$500–$1,500 for legal or notarial review","2–5 business days",{"best_for":490,"cost":491,"time":492},"Complex syndicated loans, cross-border multi-jurisdiction collateral, distressed borrowers, or significant loan amounts where priority and enforcement strategy require specialized secured lending counsel","$2,500–$10,000+","1–3 weeks",[494,499,504,509],{"code":495,"name":496,"flag_asset_id":497,"note":498},"us","United States","flag-us","US law does not use the term 'movable hypothec' — the functional equivalent is an Article 9 security agreement under the Uniform Commercial Code, perfected by filing a UCC-1 financing statement with the applicable state Secretary of State. Priority among competing secured creditors is determined by the order of filing. The UCC applies broadly to all personal property security transactions regardless of whether the debtor is a business or an individual.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"ca","Canada","flag-ca","Quebec is the primary Canadian jurisdiction where movable hypothecs apply, governed by the Civil Code of Quebec (CCQ). Execution must be by notarial act, and registration is in the RPMRR. In all other Canadian provinces and territories, the equivalent instrument is a security agreement under the applicable Personal Property Security Act (PPSA), perfected by a financing statement. Cross-provincial transactions involving collateral in both Quebec and common-law provinces require parallel registrations under both regimes.",{"code":505,"name":506,"flag_asset_id":507,"note":508},"uk","United Kingdom","flag-uk","English law uses fixed and floating charges over personal property, documented in a debenture and registered at Companies House under the Companies Act 2006. Scotland applies a distinct legal system with its own security instruments. The movable hypothec concept does not exist in English law, but the economic function is achieved through a fixed charge (over specific identified assets) or a floating charge (over a class of assets as they exist from time to time), with registration required within 21 days of creation.",{"code":510,"name":511,"flag_asset_id":512,"note":513},"eu","European Union","flag-eu","The movable hypothec is recognized in several EU civil law jurisdictions — France, Belgium, Luxembourg, and others — under their respective civil codes. The EU Financial Collateral Arrangements Directive harmonizes security over financial assets, but movable property security over physical assets remains governed by national law. Priority and enforcement rules vary significantly by member state. GDPR considerations may apply where the collateral includes databases or personal data assets.",[515,252,516,517,248,256,518,519,248,520,521,522],"loan-agreement-D417","equipment-lease-agreement-D1140","promissory-note-D434","credit-agreement-D416","collateral-agreement-D13257","subordination-agreement-D423","non-profit-partnership-agreement-D14023","demand-for-extension-of-payment-date-D444",{"emit_how_to":200,"emit_defined_term":200},{"primary_folder":162,"secondary_folder":525,"document_type":526,"industry":527,"business_stage":528,"tags":529,"confidence":535},"guaranties-and-collateral","agreement","general","all-stages",[530,531,532,533,534],"secured-financing","collateral","movable-hypothec","security-agreement","debtor-creditor",0.95,"\u003Ch2>What is an Agreement of Movable Hypothec Without Delivery?\u003C/h2>\n\u003Cp>An \u003Cstrong>Agreement of Movable Hypothec Without Delivery\u003C/strong> is a legally binding secured financing document in which a debtor grants a creditor a registered security right over specified movable assets — such as equipment, machinery, inventory, accounts receivable, or intellectual property — while retaining physical possession and continued use of those assets throughout the term of the obligation. Unlike a pledge or hypothec with delivery, where the creditor takes physical control of the collateral, this structure allows the debtor to operate their business normally while the creditor's interest is protected through registration in the applicable public registry. In Quebec, movable hypothecs are governed by the Civil Code of Quebec and must be executed by notarial act; in common-law jurisdictions, the functional equivalent is a security agreement perfected under personal property security legislation. The registered hypothec gives the creditor priority over subsequently registered creditors and, upon default, the right to seize and sell the collateral or exercise other statutory enforcement remedies.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a properly drafted and registered movable hypothec, a creditor who advances funds against a borrower's assets has no enforceable security interest — and in the event of the borrower's insolvency, ranks as an unsecured creditor behind all registered secured parties, often recovering nothing. A vague or improperly registered hypothec is equally dangerous: competing creditors with a registered interest in the same collateral take priority, and a bankruptcy trustee can set aside an unpublished security right entirely. For the debtor, a well-structured agreement defines exactly what assets are encumbered, what covenants apply, and what cure rights are available before the creditor can enforce — preventing a technical breach from triggering an immediate seizure of business-critical equipment. This template gives both parties a clear, complete foundation covering collateral description, the secured obligation, debtor covenants, events of default, and enforcement rights, reducing the drafting time and the risk of omitting a clause that would otherwise cost far more than the original loan to litigate.\u003C/p>\n",1778696238658]