[{"data":1,"prerenderedAt":534},["ShallowReactive",2],{"document-hypothec-on-movables-D987":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":35,"customDescModule":179,"customdescription":6,"mdFm":180,"mdProseHtml":533},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"HYPOTHEC ON MOVABLES This Hypothec on Movables (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Partnership\"), 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 [FIRST GRANTOR NAME] (the \"First Grantor\"), an individual with his main address located at: [COMPLETE ADDRESS] AND: [SECOND GRANTOR NAME] (the \"Second Grantor\"), an individual with his main address located at: [COMPLETE ADDRESS] AND: [CREDITOR NAME] (the \"Creditor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHICH PARTIES AGREE WITH EACH OTHER AS FOLLOWS: INTERPRETATION Definitions The capitalized words and expressions used in this Deed or in any deed, document or agreement supplemental or ancillary hereto, unless there be something in the subject or the context inconsistent therewith, shall have the following meanings: \"Claims\" shall have the meaning ascribed to it in subsection 2.1.2; \"Creditor\" means [CREDITOR NAME]. and includes any successor or assignee thereof; \"Deed of Hypothec\", \"this Deed\", \"this Deed of Hypothec\", \"these presents\", \"herein\", \"hereby\", \"hereunder\" and other similar expressions refer collectively to this Deed of Hypothec, its accompanying schedules as well as any and every deed or other instrument which is supplementary or ancillary hereto or in implementation hereof, the whole as same may be amended, supplemented or restated from time to time; \"Default\" means any one of the events specified in Section 7.1, the occurrence or failure to occur of which constitutes, or with the passage of time or the giving of notice or both, would constitute an Event of Default; \"Event of Default\" shall have the meaning ascribed to it in Section 7.1; \"Governmental Authority\" means any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government; \"Grantors\" refers collectively to the Partnership and the Partners; \"Hypothecated Property\" shall have the meaning ascribed to it in Section 2.1; \"Inventory\" shall have the meaning ascribed to it in subsection 2.1.1; \"Law\" means all applicable provisions of statutes, ordinances, decrees, orders in council, rules, regulations, treaties and all applicable determinations, rulings, orders and decrees of Governmental Authorities and arbitrators; \"Lien\" means any interest in property or the income or profits therefrom securing an obligation owed to, or a claim by, a Person other than the owner (which for the purposes hereof shall include a possessor under a title retention agreement and a lessee under a lease hereinbelow described) of such property, or claim whether such interest is based on common [YOUR COUNTRY LAW], civil [YOUR COUNTRY LAW], statute or contract, and including, but not limited to, any security interest, hypothec, prior claim, mortgage, pledge, lien, claim, charge, cession, transfer, assignment, encumbrance, title retention agreement, lessor's interest under a lease which would be capitalized on a balance sheet of the owner of such property or analogous instrument in, of, or on any property or the income or profits therefrom of a Person, other than Liens incurred in the ordinary course of business and for the purpose of carrying on same not in connection with the borrowing of money or the obtaining of credit and which do not in the aggregate materially impair the use, the income or profits therefrom, of the property covered thereby in the operation of such Person's business; \"Obligations\" is the collective reference to all the obligations, present and future, direct and indirect, absolute and contingent, presently owing and due or hereafter to become owing and due to the Creditor by the Grantors from time to time, including, without limiting the generality of the foregoing, all their obligations to pay to the Creditor all amounts owing to the Creditor in respect of sales of tire inventory made by it to the Partnership from time to time; \"Partners\" refers collectively to [NAME], born on [DATE] in [COUNTRY], [STATE/PROVINCE] and residing at [FULL ADDRESS], [STATE/PROVINCE], and [NAME], born on [DATE] in [COUNTRY], [STATE/PROVINCE], and residing at [FULL ADDRESS], [STATE/PROVINCE], in their capacity as partners of the Partnership, and includes any heirs and successors respectively thereof; \"Partnership\" refers to [COMPANY NAME], a general partnership duly constituted under the [YOUR COUNTRY LAW] of the Province of [STATE/PROVINCE], and includes any successor thereto; \"Person\" means any legal or natural person, corporation, firm, joint venture, partnership, whether general, limited or undeclared, trust, association, unincorporated organization, Governmental Authority or other entity of whatever nature. Plural and Masculine Unless there be something in the subject or the context inconsistent therewith, words importing the singular only shall include the plural and vice versa and words importing the masculine gender shall include the feminine gender and vice versa, and any reference to [AMOUNT] shall mean [COUNTRY] [AMOUNT]. Division in Articles. The division of this Deed into Articles, Sections, subsections and paragraphs and the insertion of titles are for convenience of reference only and do not affect the meaning or the interpretation of the present Deed. HYPOTHECS Principal Hypothec As a general and continuing collateral security for the performance by the Grantors of the Obligations, each of the Grantors hereby hypothecates to and in favor of the Creditor the following property and its respective rights, titles and interests in and to such property (collectively referred to herein as the \"Hypothecated Property\") to the extent of the sum of [AMOUNT], with interest thereon at the rate of [PERCENTAGE %] per annum: the universality of all the present and future tires, of whatever make and model, of which the Partnership is now or hereafter may be a wholesale or retail purchaser or shipper or in which it is now or may hereafter be a dealer or seller (collectively referred to herein as the \"Inventory\") and all rights to the warehouse receipts, bills of lading and other title documents relating to the Inventory; and the universality of all claims, accounts receivable and book debts which now are or may at any time hereafter become vested in the Partnership, of any nature and kind arising pursuant to the sale, transfer, assignment or other disposition of any Inventory, whether or not such claims are certain and determinate, invoiced, liquid, exigible, litigious or constituted by a negotiable or other instrument or draft and including, without limiting the generality of the foregoing, the contracts, guarantees, bills of exchange, notes, Liens, suretyships and accessories connected in any manner whatsoever to or securing the said claims, accounts receivable and book debts, and all the books, accounts, invoices, letters and other documents evidencing the said claims, accounts receivable and book debts, in any manner whatsoever, which now are or may hereafter become vested in the Partnership (collectively referred to herein as the \"Claims\"). Additional Hypothec As general and continuing collateral security for the performance by the Grantors of the Obligations not otherwise secured by the hypothecs created under the terms of Section 2",null,"Hypothec on Movables","9",88,"doc","https://templates.business-in-a-box.com/imgs/1000px/hypothec-on-movables-D987.png","https://templates.business-in-a-box.com/imgs/250px/987.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#987.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Legal Agreements","/templates/business-legal-agreements/",{"label":20,"url":21},"Deeds","/templates/deed/","hypothec movables","Hypothec on Movables Template","https://templates.business-in-a-box.com/imgs/400px/987.png",[26,16,19],{"label":27,"url":28},"Templates","/templates/",[30,31,32],{"label":27,"url":28},{"label":17,"url":18},{"label":33,"url":34},"Guaranties & Collateral","/templates/guaranties-and-collateral/",[36,40,44,48,52,56,60,64,68,72,76,80,84,99,118,135,149,164],{"label":37,"url":38,"thumb":39,"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":41,"url":42,"thumb":43,"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":45,"url":46,"thumb":47,"extension":10},"Deed of Movable Hypothec","/template/deed-of-movable-hypothec-D982","https://templates.business-in-a-box.com/imgs/250px/982.png",{"label":49,"url":50,"thumb":51,"extension":10},"Moveable Hypothec Agreement","/template/moveable-hypothec-agreement-D990","https://templates.business-in-a-box.com/imgs/250px/990.png",{"label":53,"url":54,"thumb":55,"extension":10},"Movable Hypothec Promissory Note","/template/movable-hypothec-promissory-note-D432","https://templates.business-in-a-box.com/imgs/250px/432.png",{"label":57,"url":58,"thumb":59,"extension":10},"Movable Hypothec Long Form","/template/movable-hypothec-long-form-D284","https://templates.business-in-a-box.com/imgs/250px/284.png",{"label":61,"url":62,"thumb":63,"extension":10},"Agreement of Movable Hypothec Without Delivery","/template/agreement-of-movable-hypothec-without-delivery-D1131","https://templates.business-in-a-box.com/imgs/250px/1131.png",{"label":65,"url":66,"thumb":67,"extension":10},"Inclusion Policy","/template/inclusion-policy-D13272","https://templates.business-in-a-box.com/imgs/250px/13272.png",{"label":69,"url":70,"thumb":71,"extension":10},"Assignment for Deed","/template/assignment-for-deed-D974","https://templates.business-in-a-box.com/imgs/250px/974.png",{"label":73,"url":74,"thumb":75,"extension":10},"Assignment of Deed of Trust","/template/assignment-of-deed-of-trust-D975","https://templates.business-in-a-box.com/imgs/250px/975.png",{"label":77,"url":78,"thumb":79,"extension":10},"Build To Suit Agreement","/template/build-to-suit-agreement-D12990","https://templates.business-in-a-box.com/imgs/250px/12990.png",{"label":81,"url":82,"thumb":83,"extension":10},"Deed of Acquittance and Discharge","/template/deed-of-acquittance-and-discharge-D978","https://templates.business-in-a-box.com/imgs/250px/978.png",{"description":85,"descriptionCustom":6,"label":86,"pages":87,"size":88,"extension":10,"preview":89,"thumb":90,"svgFrame":91,"seoMetadata":92,"parents":93,"keywords":97,"url":98},"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","10",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},[94,96],{"label":17,"url":95},"business-legal-agreements",{"label":17,"url":95},"security agreement","/template/security-agreement-D915",{"description":100,"descriptionCustom":6,"label":101,"pages":102,"size":103,"extension":10,"preview":104,"thumb":105,"svgFrame":106,"seoMetadata":107,"parents":109,"keywords":108,"url":117},"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":108,"description":6},"loan agreement",[110,113,116],{"label":111,"url":112},"Finance & Accounting","finance-accounting",{"label":114,"url":115},"Business Loans","business-loan",{"label":114,"url":115},"/template/loan-agreement-D417",{"description":119,"descriptionCustom":6,"label":120,"pages":121,"size":122,"extension":10,"preview":123,"thumb":124,"svgFrame":125,"seoMetadata":126,"parents":127,"keywords":133,"url":134},"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},[128,129,130],{"label":111,"url":112},{"label":114,"url":115},{"label":131,"url":132},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":136,"descriptionCustom":6,"label":137,"pages":102,"size":103,"extension":10,"preview":138,"thumb":139,"svgFrame":140,"seoMetadata":141,"parents":143,"keywords":142,"url":148},"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":142,"description":6},"personal guarantee",[144,145,146],{"label":111,"url":112},{"label":114,"url":115},{"label":33,"url":147},"guaranties-collateral","/template/personal-guarantee-D405",{"description":150,"descriptionCustom":6,"label":151,"pages":152,"size":103,"extension":10,"preview":153,"thumb":154,"svgFrame":155,"seoMetadata":156,"parents":158,"keywords":157,"url":163},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Demand to Pay Promissory Note Dear [Contact name], This is to notify you that payment is past due under your Promissory Note (the \"Note\") dated [DATE]. The following payments have not been received: Payment Due Date Amount of Principal Due Amount of Interest Due Late Charge Thus, as of the date of this letter, you are in arrears in the total amount of [Amount OF arrears].","Demand to Pay Promissory Note","1","https://templates.business-in-a-box.com/imgs/1000px/demand-to-pay-promissory-note-D207.png","https://templates.business-in-a-box.com/imgs/250px/207.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#207.xml",{"title":157,"description":6},"demand to pay promissory note",[159,162],{"label":160,"url":161},"Credit & Collection","credit-collection",{"label":160,"url":161},"/template/demand-to-pay-promissory-note-D207",{"description":165,"descriptionCustom":6,"label":166,"pages":167,"size":168,"extension":10,"preview":169,"thumb":170,"svgFrame":171,"seoMetadata":172,"parents":173,"keywords":177,"url":178},"SUBORDINATION AGREEMENT This Subordination Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Borrower), 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: [SECOND PARTY NAME] (the \"General Partner\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [THIRD PARTY 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] WHEREAS [COMPANY NAME] (herein called the \"Borrower\") is indebted and may hereafter become further indebted or liable to the undersigned (herein called [SPECIFY]); WHEREAS concurrently with the execution hereof, [COMPANY NAME] (the \"Lender\") and the Borrower did execute a credit agreement bearing formal date of [DATE] (the said agreement, as same may be amended, supplemented or restated at any time and from time to time, shall be referred to herein as the \"Credit Agreement\"); WHEREAS [COMPANY NAME] is the general partner of the Borrower (the \"General Partner\"); WHEREAS it is a condition of the Credit Agreement that [SPECIFY] enter into this Subordination Agreement in favor of the Lender; WHEREAS the General Partner is a wholly-owned subsidiary of [SPECIFY] it is in the best interests and to the advantage of [SPECIFY] that the Lender agree to lend to the Borrower an amount up to the Aggregate Commitment on the terms and conditions of the Credit Agreement; NOW, THEREFORE, in consideration of the Lender making advances to the Borrower pursuant to the Credit Agreement, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, [SPECIFY] covenants and agrees with the Lender as follows: [SPECIFY] hereby acknowledges, agrees and confirms that, subject to Section [NUMBER], any and all present and future Indebtedness and liabilities of the Borrower to [SPECIFY] (all of which present and future Indebtedness and liabilities being herein collectively called \"[SPECIFY] Indebtedness\" are hereby and shall hereafter be junior and subordinate to, and the payment thereof, whether in whole or in part, and whether as to principal, interest, fees or otherwise, and whether at or prior to maturity or upon acceleration of maturity, is postponed to the prior payment in full of, all present and future Indebtedness and liabilities of the Borrower to the Lender under the Credit Agreement (all of which present and future Indebtedness and liabilities being herein collectively called \"Lender Indebtedness\"); and any and all Liens now or hereafter held by [SPECIFY] for [SPECIFY] Indebtedness or any part thereof (all of which present and future Liens being herein collectively called \"[SPECIFY] Liens\"), as well as all rights, remedies and recourses which now are or may hereafter be granted by the Borrower to [SPECIFY], whether directly or indirectly, under the terms of the [SPECIFY] Liens are hereby and shall hereafter be subject, postponed, and fully and completely subordinated to any and all Liens now or hereafter held by the Lender for Lender Indebtedness or any part thereof including, without limitation, the Liens constituted pursuant to the Security Documents to which the Borrower is a party (all of which present and future Liens being herein collectively called \"Lender Liens\"), notwithstanding any priorities that might otherwise be established by [YOUR COUNTRY LAW] and resulting either from the nature of the Lien which now is or may hereafter be created under the [SPECIFY] Liens, or from the date of execution, issue, delivery, registration, notification, publication or perfection of any deed, document, instrument or notice, or otherwise howsoever. In order to effectuate this Agreement, subject to Section [NUMBER], [SPECIFY] hereby assigns, transfers and makes over to the Lender any and all [SPECIFY] Indebtedness; and [SPECIFY] hereby authorizes the Lender to collect and receive any dividends, distributions or payments which may be payable to [SPECIFY] in the course of any receivership, bankruptcy, liquidation or winding-up of the Borrower or upon realization of any [SPECIFY] Liens, and in the event of the amount of Lender Indebtedness at such time not being paid in full (in principal, interest, costs and accessories), [SPECIFY] hereby authorizes the Lender to apply the amount of the dividends, distributions or payments so collected by the Lender in payment of the balance of the Lender Indebtedness, the surplus, if any, to be paid to [SPECIFY]. [SPECIFY] shall, upon demand of the Lender, execute all sworn statements of claim, assignments and other documents and do all matters and things which may be necessary or advisable in the opinion of the Lender, acting reasonably, to give effect to this Agreement. Subject to Section [NUMBER], moneys owing and which may hereafter become owing by the Borrower to [SPECIFY] shall not be paid to or withdrawn by [SPECIFY], but shall hereafter either remain on the books of the Borrower or be paid to the Lender pursuant to this Agreement, unless the Lender's prior written consent is obtained. Any moneys received by [SPECIFY] or by any agent of [SPECIFY] on account of any [SPECIFY] Indebtedness without the prior written consent of the Lender shall be held as agent for the Lender and shall forthwith be paid to the Lender upon demand. Notwithstanding any provision to the contrary herein contained, unless an Event of Default shall have occurred and be continuing, the Borrower may pay to [SPECIFY], without the prior written consent of the Lender:","Subordination Agreement","4",55,"https://templates.business-in-a-box.com/imgs/1000px/subordination-agreement-D423.png","https://templates.business-in-a-box.com/imgs/250px/423.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#423.xml",{"title":6,"description":6},[174,175,176],{"label":111,"url":112},{"label":114,"url":115},{"label":114,"url":115},"subordination agreement","/template/subordination-agreement-D423",false,{"seo":181,"reviewer":194,"legal_disclaimer":198,"quick_facts":199,"at_a_glance":201,"personas":205,"variants":230,"glossary":258,"clauses":295,"how_to_fill":346,"common_mistakes":387,"faqs":412,"industries":443,"comparisons":460,"diy_vs_lawyer":475,"jurisdictions":488,"related_template_ids_curated":509,"schema":520,"classification":521},{"meta_title":182,"meta_description":183,"primary_keyword":184,"secondary_keywords":185},"Hypothec On Movables Template | BIB","Free hypothec on movables template to secure a loan or obligation against personal property.","hypothec on movables template",[186,187,188,189,190,191,192,193],"hypothec on movables","movable hypothec agreement","secured lending agreement template","personal property security agreement","hypothec agreement template word","movable property security document","commercial hypothec template free","chattel mortgage template",{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":200,"legal_review_recommended":198,"signature_required":198,"notarization_required":179},"advanced",{"what_it_is":202,"when_you_need_it":203,"whats_inside":204},"A Hypothec on Movables is a legally binding security document in which a debtor grants a creditor a security interest over specified movable (personal) property — such as equipment, inventory, receivables, or vehicles — as collateral for a loan or obligation. This free Word download provides a structured template you can edit online and export as PDF, covering collateral description, secured obligations, debtor covenants, default triggers, and enforcement rights.\n","Use it when a lender extends credit or a creditor accepts a deferred obligation and requires movable assets as collateral security. It is commonly executed alongside a loan agreement, line of credit, or commercial financing arrangement where real property security is unavailable or insufficient.\n","Identification of the parties and the secured obligation, a precise description of the collateral, debtor covenants on maintenance and insurance, representations and warranties, default and enforcement provisions, registration requirements, and governing law.\n",[206,210,214,218,222,226],{"title":207,"use_case":208,"icon_asset_id":209},"Commercial lenders","Securing equipment or inventory loans against a borrower's movable assets","persona-lender",{"title":211,"use_case":212,"icon_asset_id":213},"Small business owners","Pledging business assets as collateral to access working capital financing","persona-small-business-owner",{"title":215,"use_case":216,"icon_asset_id":217},"Equipment financiers","Documenting a security interest over financed machinery or vehicles","persona-contractor",{"title":219,"use_case":220,"icon_asset_id":221},"Corporate finance teams","Structuring asset-backed credit facilities secured by accounts receivable or inventory","persona-ceo",{"title":223,"use_case":224,"icon_asset_id":225},"Factoring and leasing companies","Registering a priority security interest over receivables or leased movables","persona-agency",{"title":227,"use_case":228,"icon_asset_id":229},"Private lenders and investors","Taking security over a borrower's personal property for a private loan","persona-startup-founder",[231,235,239,243,247,251,255],{"situation":232,"recommended_template":233,"slug":234},"Securing a loan against business equipment or machinery","Hypothec on Movables (Equipment)","hypothec-on-movables-D987",{"situation":236,"recommended_template":237,"slug":238},"Taking security over all present and future business assets","General Security Agreement","security-agreement-D915",{"situation":240,"recommended_template":241,"slug":242},"Securing a mortgage or loan against immovable real property","Deed of Hypothec (Immovable)","deed-of-hypothec-on-movables-D981",{"situation":244,"recommended_template":245,"slug":246},"Pledging receivables as collateral under a factoring arrangement","Assignment of Receivables Agreement","assignment-agreement-D12542",{"situation":248,"recommended_template":249,"slug":250},"Documenting a personal property security interest under common law","Personal Property Security Agreement","pledge-of-personal-property-D406",{"situation":252,"recommended_template":253,"slug":254},"Financing a vehicle purchase with the vehicle as collateral","Chattel Mortgage Agreement","mortgage-D1183",{"situation":256,"recommended_template":257,"slug":238},"Securing inventory under a revolving credit facility","Inventory Security Agreement",[259,262,265,268,271,274,277,280,283,286,289,292],{"term":260,"definition":261},"Hypothec","A civil-law security right granted over property to secure payment of a debt, without requiring transfer of possession to the creditor.",{"term":263,"definition":264},"Movables","Property that can be physically moved or transferred, including equipment, inventory, vehicles, accounts receivable, and intellectual property rights — as opposed to immovable real estate.",{"term":266,"definition":267},"Grantor / Debtor","The party who owns the collateral and grants the security interest to the creditor in exchange for credit or the performance of an obligation.",{"term":269,"definition":270},"Secured Creditor","The lender or obligee who holds the security interest and has priority over unsecured creditors against the collateral in the event of default or insolvency.",{"term":272,"definition":273},"Collateral","The specific movable property described in the hypothec document that the creditor may seize or realize upon if the debtor defaults.",{"term":275,"definition":276},"Secured Obligation","The underlying debt, loan, or contractual obligation that the hypothec is created to guarantee — typically a principal amount plus interest.",{"term":278,"definition":279},"Registration / Publication","The act of filing or recording the security interest in a public registry — such as the RPMRR in Quebec or a PPSA registry — to establish priority over subsequent creditors.",{"term":281,"definition":282},"Default","A failure by the debtor to meet the terms of the secured obligation or to comply with the covenants in the hypothec document, triggering the creditor's enforcement rights.",{"term":284,"definition":285},"Realization / Enforcement","The legal process by which a secured creditor exercises rights over the collateral after default — including seizure, sale, or taking possession — to recover the secured amount.",{"term":287,"definition":288},"Priority","The ranking of competing security interests against the same collateral, generally determined by the date of registration; a first-registered creditor has priority over later-registered ones.",{"term":290,"definition":291},"Floating Charge","A security interest that attaches to a changing pool of assets — such as inventory — rather than specific identified items, crystallizing into a fixed charge upon default.",{"term":293,"definition":294},"After-Acquired Property","Property acquired by the debtor after the hypothec is granted that automatically falls within the scope of the security interest if the document so provides.",[296,301,306,311,316,321,326,331,336,341],{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Parties and Recitals","Identifies the grantor (debtor) and the secured creditor by their full legal names and roles, and sets out the background context — the nature of the underlying obligation being secured.","This Hypothec on Movables is granted on [DATE] by [GRANTOR FULL LEGAL NAME] (the 'Grantor') in favour of [CREDITOR FULL LEGAL NAME] (the 'Creditor') to secure the obligations described herein.","Using a trade name instead of the registered legal entity name for either party. Enforcement actions and registry filings must match the exact legal name or priority can be challenged.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Description of Secured Obligation","Precisely states the debt or obligation being secured — including principal amount, interest rate, maturity date, and any related loan agreement by reference.","This Hypothec secures the payment of all amounts owing by the Grantor to the Creditor pursuant to the Loan Agreement dated [DATE], including principal of $[AMOUNT], interest at [RATE]% per annum, and all fees and costs, up to a maximum secured amount of $[MAXIMUM AMOUNT].","Failing to state a maximum secured amount where required by the applicable registry system. In Quebec, the RPMRR requires a specific sum certain for registration to be valid.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Description of Collateral","Provides a specific and complete description of the movable property pledged as security, including serial numbers, categories of assets, or an all-assets description where applicable.","The Grantor hereby hypothecates in favour of the Creditor all present and after-acquired movables of the Grantor, including but not limited to: [SPECIFIC EQUIPMENT / INVENTORY CATEGORY / VEHICLE MAKE, MODEL, SERIAL NO.], as more particularly described in Schedule A attached hereto.","Vague collateral descriptions such as 'business assets' without specifics. Courts and registries require sufficient description to identify the property; overbroad language without Schedule A support can render the security unenforceable against third parties.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Grant of Security Interest","The operative clause in which the debtor formally and irrevocably grants the hypothec — the security right — over the described collateral to the creditor.","As security for the full and punctual payment of the Secured Obligation, the Grantor hereby grants, hypothecates, and charges in favour of the Creditor a first-ranking hypothec on the Collateral described herein, with all rights of realization attached thereto.","Omitting ranking language ('first-ranking') when the parties intend priority. Without it, a subsequent creditor who registers first may claim superior priority.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Debtor Covenants","The obligations the grantor agrees to fulfil for the duration of the hypothec — including maintaining and insuring the collateral, not disposing of it without consent, and notifying the creditor of material changes.","The Grantor covenants and agrees to: (a) maintain the Collateral in good repair; (b) keep the Collateral insured against risk of loss for no less than $[AMOUNT] naming the Creditor as loss payee; (c) not sell, transfer, or encumber the Collateral without prior written consent of the Creditor; and (d) promptly notify the Creditor of any loss, damage, or threatened seizure of the Collateral.","No insurance clause or failure to name the creditor as loss payee. If the collateral is destroyed, the creditor loses security and may have no claim against the insurance proceeds.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Representations and Warranties","Statements by the grantor confirming that they own the collateral free and clear, have authority to grant the hypothec, and that no prior encumbrances exist except as disclosed.","The Grantor represents and warrants that: (a) the Grantor is the lawful owner of the Collateral with good and marketable title; (b) the Collateral is free and clear of all encumbrances except as disclosed in Schedule B; (c) the Grantor has full authority to execute this Hypothec; and (d) no insolvency proceedings are pending or threatened against the Grantor.","No schedule or disclosure of prior encumbrances. An undisclosed prior registration discovered after the fact can expose the grantor to breach of warranty liability and deprive the creditor of expected priority.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Default and Acceleration","Defines specific events that constitute default and triggers the creditor's right to demand immediate repayment of the full outstanding amount and to exercise enforcement rights.","Each of the following constitutes an Event of Default: (a) failure to pay any amount under the Secured Obligation within [X] days of the due date; (b) breach of any covenant herein not remedied within [X] days of written notice; (c) insolvency, bankruptcy, or appointment of a receiver; (d) any material loss, destruction, or unauthorized disposition of the Collateral.","Omitting a cure period for technical or administrative defaults. Courts may find immediate acceleration without notice or a reasonable cure window to be unenforceable or in bad faith.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Enforcement and Realization Rights","Sets out the creditor's rights upon default — including the right to take possession of the collateral, sell it by private or public sale, and apply the proceeds to the secured debt.","Upon an Event of Default, the Creditor may, without further notice to the Grantor: (a) take possession of and sell the Collateral by private sale or public auction; (b) appoint a receiver or receiver-manager; and (c) apply proceeds of realization first to costs of enforcement, then to accrued interest, then to principal of the Secured Obligation.","Not specifying the order of application of proceeds. Disputes over whether enforcement costs, fees, or principal are recovered first frequently result in litigation.",{"name":337,"plain_english":338,"sample_language":339,"common_mistake":340},"Registration and Publication","Authorizes the creditor to register the hypothec in the applicable public registry and requires the grantor to cooperate with any additional filings needed to perfect the security interest.","The Grantor authorizes the Creditor to register this Hypothec in the [REGISTER OF PERSONAL AND MOVABLE REAL RIGHTS / PPSA REGISTRY / OTHER APPLICABLE REGISTRY] and to file all documents necessary to perfect and maintain the Creditor's security interest. The Grantor shall execute any further documents reasonably required for this purpose.","Failing to actually register after execution. An unregistered hypothec is generally ineffective against third parties — other creditors, a trustee in bankruptcy, or a subsequent buyer of the collateral.",{"name":342,"plain_english":343,"sample_language":344,"common_mistake":345},"Governing Law and Jurisdiction","Specifies which jurisdiction's law governs the hypothec and which courts have jurisdiction to resolve disputes — critical given that security law varies significantly between civil-law and common-law provinces and states.","This Hypothec shall be governed by and construed in accordance with the laws of [PROVINCE / STATE / COUNTRY]. The parties attorn to the exclusive jurisdiction of the courts of [JURISDICTION] for any dispute arising hereunder.","Choosing a governing law that has no connection to where the collateral is located. Most security law systems apply the law of the location of the collateral at the time of registration, regardless of what the contract says.",[347,352,357,362,367,372,377,382],{"step":348,"title":349,"description":350,"tip":351},1,"Identify both parties by full legal name","Enter the grantor's and creditor's exact registered legal names — for corporations, as they appear on the certificate of incorporation or articles. Include addresses and, where applicable, registration or tax identification numbers.","Cross-reference the company's registry filing before completing this section. A name mismatch between the hypothec and a registry filing can defeat priority.",{"step":353,"title":354,"description":355,"tip":356},2,"Describe the secured obligation precisely","State the principal amount, interest rate, payment schedule, and maturity date. Reference the underlying loan agreement by its full title and date. Include a maximum secured amount if the applicable registry requires it.","In Quebec, registration under the RPMRR requires a specific sum — use the total maximum exposure including interest and enforcement costs, not just the principal.",{"step":358,"title":359,"description":360,"tip":361},3,"Draft a complete collateral description","List all movable property covered by the hypothec in Schedule A: include serial numbers for equipment and vehicles, category descriptions for inventory or receivables, and an after-acquired property clause if the parties intend ongoing security.","For revolving inventory or receivables, use a category description ('all inventory now owned or hereafter acquired') rather than specific items — specific descriptions become stale the moment the asset turns over.",{"step":363,"title":364,"description":365,"tip":366},4,"Confirm the ranking and any prior encumbrances","Search the applicable registry before execution to identify any existing registrations against the grantor. Disclose prior encumbrances in Schedule B and confirm whether the hypothec is first-ranking or subordinated.","A registry search costs $10–$50 and takes under an hour. Skipping it and discovering a prior ranking creditor after default can make your security worthless.",{"step":368,"title":369,"description":370,"tip":371},5,"Complete the debtor covenants and insurance requirements","Specify the required insurance coverage amount, the insurer's minimum rating if applicable, and confirm the creditor is named as loss payee or additional insured. List all prohibited dispositions and any permitted exceptions.","Require the grantor to provide proof of insurance at signing — not just a promise to obtain it. A certificate of insurance on the closing date is the industry standard.",{"step":373,"title":374,"description":375,"tip":376},6,"Define default events and cure periods","List every event of default clearly, including payment failure, covenant breach, insolvency, and collateral loss. Set a cure period (typically 5–15 business days) for remediable defaults and make cure periods shorter or absent for material events like insolvency.","Differentiate between curable defaults (missed payment, lapsed insurance) and incurable ones (insolvency, fraud). Treating both identically invites a court challenge.",{"step":378,"title":379,"description":380,"tip":381},7,"Execute and register immediately","Both parties must sign the hypothec — wet ink or qualified eSignature as permitted by jurisdiction. File with the applicable registry (RPMRR in Quebec, PPSA registry in other Canadian provinces, UCC-1 in the US) on the same day or within 24 hours of execution.","Priority against other creditors runs from the date of registration, not the date of signing. Every day between execution and registration is a window during which another creditor can leapfrog your position.",{"step":383,"title":384,"description":385,"tip":386},8,"Retain the executed copy and monitor the registration","Store the fully executed hypothec and proof of registration in your legal file. Set a calendar reminder to renew the registration before expiry — most PPSA registrations expire after 5 years unless renewed.","A lapsed registration is treated as if the security interest was never registered. Automated renewal reminders 90 days before expiry prevent this common and avoidable mistake.",[388,392,396,400,404,408],{"mistake":389,"why_it_matters":390,"fix":391},"Failing to register the hypothec after signing","An unregistered hypothec is generally ineffective against third parties — including a trustee in bankruptcy and competing secured creditors. You may hold a valid contract but have no enforceable priority.","Register with the applicable personal property or movable security registry on the same day the document is signed. Treat registration as part of the closing checklist, not an afterthought.",{"mistake":393,"why_it_matters":394,"fix":395},"Vague or incomplete collateral description","A description like 'all business equipment' without serial numbers, categories, or a Schedule A may be insufficient to identify the property at the time of enforcement, allowing the debtor or a trustee to dispute what is covered.","Attach a Schedule A listing each asset with make, model, serial number, and condition, or use a defined category description for fungible assets like inventory and receivables.",{"mistake":397,"why_it_matters":398,"fix":399},"Omitting a maximum secured amount","In civil-law jurisdictions — particularly Quebec — registration of a hypothec requires a specific maximum sum. Without it, the registration may be rejected or the security limited to the stated amount if the debt grows.","Calculate the maximum exposure including principal, projected interest over the term, and estimated enforcement costs, then register for that total.",{"mistake":401,"why_it_matters":402,"fix":403},"Not conducting a registry search before execution","An undiscovered prior-ranking registration can reduce your security to second or third priority — meaning in a default scenario, the prior creditor is paid in full before you receive anything.","Run a registry search against the grantor's legal name and any trade names before signing. If prior registrations exist, negotiate a subordination agreement or require their discharge as a condition of lending.",{"mistake":405,"why_it_matters":406,"fix":407},"Choosing a governing law unconnected to the collateral's location","Most security law regimes apply the law of the jurisdiction where the collateral is located, regardless of what the contract states. An Ontario-governed hypothec over assets permanently located in Quebec may be assessed under Quebec civil law.","Set the governing law to match the jurisdiction where the collateral is ordinarily located. For multi-province or multi-state collateral, take separate registrations in each jurisdiction.",{"mistake":409,"why_it_matters":410,"fix":411},"No cure period for remediable defaults","Immediate acceleration on a first missed payment with no notice or cure period is frequently challenged as acting in bad faith, and courts in several jurisdictions have refused to allow enforcement on this basis.","Include a written notice requirement and a 5–15 business day cure period for payment and covenant defaults. Reserve zero-cure triggers for incurable events like insolvency or intentional fraud.",[413,416,419,422,425,428,431,434,437,440],{"question":414,"answer":415},"What is a hypothec on movables?","A hypothec on movables is a civil-law security instrument that grants a creditor a right over specified personal (movable) property owned by a debtor to secure the repayment of a debt or the performance of an obligation. Unlike a pledge, the debtor retains possession of the collateral during the loan term. The hypothec must be registered in a public registry to be effective against third parties. It is most common in Quebec and other civil-law jurisdictions, where it serves the same function as a personal property security agreement or chattel mortgage in common-law provinces and states.\n",{"question":417,"answer":418},"How is a hypothec on movables different from a mortgage?","A mortgage traditionally applies to immovable property — real estate and buildings. A hypothec on movables applies to personal property: equipment, vehicles, inventory, receivables, and similar assets. Both create a security interest without requiring the debtor to hand over possession, and both must be registered to bind third parties. In Quebec civil law, the term 'hypothec' covers both immovable and movable security; in common-law jurisdictions, movable-property security is typically governed by a Personal Property Security Act rather than mortgage law.\n",{"question":420,"answer":421},"Does a hypothec on movables need to be registered?","Yes, in virtually every jurisdiction where hypothecs on movables are used. In Quebec, registration in the Register of Personal and Movable Real Rights (RPMRR) is required for the hypothec to be enforceable against third parties, including a trustee in bankruptcy and competing creditors. In other Canadian provinces, an equivalent registration under the applicable Personal Property Security Act is required. In the United States, a UCC-1 financing statement must be filed. An unregistered security interest generally binds only the debtor personally — it does not create priority against anyone else.\n",{"question":423,"answer":424},"What types of property can be covered by a hypothec on movables?","A hypothec on movables can cover virtually any category of personal property: physical equipment and machinery, commercial vehicles, inventory, accounts receivable, intellectual property rights, investment securities, bank accounts, and insurance proceeds. It can also be drafted to cover after-acquired property — assets the debtor acquires after the hypothec is granted — which is essential for revolving-credit facilities secured by inventory or receivables that constantly turn over.\n",{"question":426,"answer":427},"What happens if the debtor defaults on a hypothec on movables?","Upon default, the secured creditor typically has the right to take possession of the collateral, sell it by private or public sale, and apply the proceeds to the outstanding debt. In Quebec, the creditor must generally follow the specific realization procedures in the Civil Code — including prior notice to the debtor — before taking possession or selling. In common-law jurisdictions, equivalent PPSA provisions apply. The creditor may also appoint a receiver over the collateral assets. Any surplus after repayment of the debt and enforcement costs is returned to the debtor.\n",{"question":429,"answer":430},"Can a hypothec on movables cover future or after-acquired assets?","Yes, provided the document includes a clear after-acquired property clause. This is especially important for security over inventory, receivables, or other assets that change frequently. The clause should specifically state that the hypothec covers all property of the described category now owned or hereafter acquired by the debtor. Registration of such a clause is generally effective to create priority over after-acquired assets from the date of the original registration.\n",{"question":432,"answer":433},"Is a hypothec on movables the same as a general security agreement?","They serve the same commercial purpose — securing a debt against personal property — but arise from different legal traditions. A hypothec on movables is a civil-law instrument used primarily in Quebec; a general security agreement is a common-law document used in other Canadian provinces under PPSA legislation. A general security agreement typically covers all present and after-acquired personal property of the debtor, while a hypothec on movables can be limited to specific assets or asset categories. Businesses operating in Quebec typically use a hypothec; those in other provinces use a GSA or PPSA security agreement.\n",{"question":435,"answer":436},"Do I need a lawyer to prepare a hypothec on movables?","For straightforward commercial loans secured by specific identified equipment, a well-structured template reviewed by the parties is generally sufficient. Legal counsel is advisable when the collateral is complex (mixed movable and immovable assets, intellectual property, or investment securities), when the transaction is high-value, when prior encumbrances exist, or when the debtor operates across multiple jurisdictions requiring coordinated registrations. A lawyer review typically costs $500–$1,500 and is worthwhile for any secured facility above $100,000.\n",{"question":438,"answer":439},"How long does a hypothec on movables registration last?","Registration duration depends on the jurisdiction and the term chosen at filing. In Quebec's RPMRR, registration can be made for a fixed term or indefinitely. Under most Canadian PPSA regimes, registrations are made for a specific number of years — commonly 5 years — and must be renewed before expiry or they lapse automatically. In the US, a UCC-1 filing is effective for 5 years from the date of filing and must be continued by filing a UCC-3 continuation statement before the expiry date. A lapsed registration is treated as if it was never filed.\n",{"question":441,"answer":442},"What is the priority rule for competing hypothecs on the same collateral?","Priority is generally determined by the date and time of registration, not the date of signing. The first creditor to register against a specific debtor and collateral has priority over later-registered creditors in the event of default or insolvency. This is why immediate registration after execution is critical. Exceptions apply for purchase-money security interests — a seller or financier who funds the acquisition of specific collateral may obtain super-priority over an earlier general security holder if they register within the prescribed period, typically 10–20 days of the debtor taking possession of the collateral.\n",[444,448,452,456],{"industry":445,"icon_asset_id":446,"specifics":447},"Manufacturing","industry-manufacturing","Securing loans against production equipment, machinery lines, and raw material inventory, often with after-acquired property clauses to capture new equipment purchases automatically.",{"industry":449,"icon_asset_id":450,"specifics":451},"Transportation and Logistics","industry-construction","Fleet financing arrangements where each vehicle is individually identified by VIN, with the hypothec registered in the province or state where the vehicle is ordinarily located.",{"industry":453,"icon_asset_id":454,"specifics":455},"Retail and Wholesale","industry-retail","Revolving credit facilities secured by fluctuating inventory, requiring floating-charge collateral descriptions and periodic inventory audits as a covenant.",{"industry":457,"icon_asset_id":458,"specifics":459},"Professional Services and Technology","industry-saas","Security interests over accounts receivable, intellectual property licences, and software assets for firms with limited tangible property but substantial intangible asset value.",[461,464,468,472],{"vs":237,"vs_template_id":462,"summary":463},"general-security-agreement-D13340","A general security agreement is the common-law equivalent of a hypothec on movables, used in Canadian provinces outside Quebec under PPSA legislation. Both create a security interest over personal property, but a GSA typically covers all present and after-acquired personal property of the debtor in a single document. A hypothec on movables is the appropriate instrument when the debtor or collateral is located in Quebec or another civil-law jurisdiction. Choose based on where the collateral is situated, not the governing law preference of the parties.",{"vs":465,"vs_template_id":466,"summary":467},"Pledge Agreement","D{PLEDGE_AGREEMENT_ID}","A pledge requires the debtor to physically transfer possession of the collateral to the creditor for the security interest to exist. A hypothec on movables allows the debtor to retain possession — meaning the business can continue using its equipment or selling its inventory while the security is in place. Pledges are used for financial instruments and documents of title; hypothecs are used for operating assets where possession transfer would disrupt the business.",{"vs":469,"vs_template_id":470,"summary":471},"Chattel Mortgage","D{CHATTEL_MORTGAGE_ID}","A chattel mortgage is a common-law security instrument used primarily in the UK, Australia, and parts of the US to secure a loan against specific tangible movable property. It historically required transfer of legal title to the creditor until the debt was repaid. A hypothec on movables is a civil-law instrument that creates a security right without any title transfer. In jurisdictions where both concepts overlap, the functional outcome is similar, but the applicable procedural and registration rules differ significantly.",{"vs":249,"vs_template_id":473,"summary":474},"D{PPSA_AGREEMENT_ID}","A personal property security agreement is the generic term for any document creating a security interest over personal property under PPSA legislation in common-law Canadian provinces and equivalent US UCC Article 9 regimes. A hypothec on movables is specifically a civil-law instrument with its own rules under the Quebec Civil Code. If the debtor operates solely in Quebec, use a hypothec; if they operate in other provinces, use a PPSA-compliant security agreement; if they operate in both, consider taking both instruments simultaneously.",{"use_template":476,"template_plus_review":480,"custom_drafted":484},{"best_for":477,"cost":478,"time":479},"Straightforward secured loans against identified equipment or vehicles in a single jurisdiction below $100,000","Free","30–60 minutes",{"best_for":481,"cost":482,"time":483},"Commercial loans above $50,000, multi-asset collateral, receivables security, or first-time lenders unfamiliar with registry procedures","$500–$1,500","2–5 days",{"best_for":485,"cost":486,"time":487},"Complex multi-jurisdiction financing, high-value transactions, cross-border secured lending, or collateral involving intellectual property or securities","$2,000–$8,000+","1–3 weeks",[489,494,499,504],{"code":490,"name":491,"flag_asset_id":492,"note":493},"us","United States","flag-us","In the United States, security interests over personal property are governed by Article 9 of the Uniform Commercial Code (UCC), adopted in all 50 states. The equivalent of a hypothec on movables is a security agreement combined with a UCC-1 financing statement filed with the Secretary of State. Priority runs from the date of filing, not the date of the security agreement. The UCC-1 must be renewed every 5 years by filing a UCC-3 continuation statement or it lapses automatically.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"ca","Canada","flag-ca","In Quebec, the hypothec on movables is a civil-law instrument governed by the Civil Code of Quebec (Articles 2660–2802) and must be registered in the Register of Personal and Movable Real Rights (RPMRR) to be enforceable against third parties. In all other Canadian provinces and territories, the equivalent instrument is a security agreement registered under the applicable Personal Property Security Act (PPSA). Businesses operating in both Quebec and other provinces may need parallel documentation under both regimes.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"uk","United Kingdom","flag-uk","The UK does not use the term 'hypothec on movables' except in Scottish law, where a hypothec is a limited common-law lien concept. For movable property security in England and Wales, a fixed or floating charge registered at Companies House under the Companies Act 2006 is the standard instrument. In Scotland, floating charges and standard securities serve equivalent functions. The UK Financial Collateral Arrangements Regulations 2003 also provide a streamlined security regime for financial collateral.",{"code":505,"name":506,"flag_asset_id":507,"note":508},"eu","European Union","flag-eu","The hypothec on movables is a recognized civil-law security instrument across many EU member states, including France, Belgium, Luxembourg, and the Netherlands, each with their own registration requirements and priority rules. France's pledge over business assets (nantissement de fonds de commerce) and Belgium's enterprise pledge (gage sur fonds de commerce) serve similar functions. The EU has no unified personal property security law; practitioners must comply with the national law of the jurisdiction where the collateral is located. GDPR considerations arise when receivables secured include personal data of customers.",[238,510,511,512,513,514,515,238,516,517,518,519],"loan-agreement-D417","promissory-note-D434","personal-guarantee-D405","demand-to-pay-promissory-note-D207","subordination-agreement-D423","assignment-D942","lease-agreement-D1179","asset-purchase-agreement-D928","line-of-credit-agreement-D14003","collateral-agreement-D13257",{"emit_how_to":198,"emit_defined_term":198},{"primary_folder":95,"secondary_folder":522,"document_type":523,"industry":524,"business_stage":525,"tags":526,"confidence":532},"guaranties-and-collateral","agreement","general","all-stages",[527,528,529,530,531],"hypothec","collateral","security-agreement","movable-property","lending",0.95,"\u003Ch2>What is a Hypothec on Movables?\u003C/h2>\n\u003Cp>A \u003Cstrong>Hypothec on Movables\u003C/strong> is a civil-law security instrument in which a debtor grants a creditor a formal security right over specified personal (movable) property — such as equipment, vehicles, inventory, accounts receivable, or intellectual property — as collateral for a loan or other obligation, without transferring possession of the property to the creditor. It is the personal property equivalent of a real estate mortgage in civil-law jurisdictions, and it must be registered in the applicable public registry to be effective against third parties. The hypothec remains attached to the collateral for the duration of the secured obligation and gives the creditor the right to seize and sell the property if the debtor defaults.\u003C/p>\n\u003Cp>The instrument is most closely associated with Quebec, where it is governed by the Civil Code of Quebec, but functionally equivalent instruments — personal property security agreements, chattel mortgages, and general security agreements — serve the same role in common-law jurisdictions across North America, the UK, and Europe.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Extending credit or deferring payment without documented security over movable assets leaves a creditor in the same position as any unsecured trade creditor — last in line behind secured lenders, tax authorities, and preferred creditors in any insolvency proceeding. A properly executed and registered hypothec on movables transforms that exposure into a priority claim against specific assets. Without it, equipment a borrower pledged verbally, inventory earmarked as collateral, or receivables promised as security provide no enforceable rights when the debtor becomes insolvent or sells the assets to a third party. Registration is the critical step that makes the security real: a signed but unregistered hypothec binds the debtor personally but is invisible to the rest of the world. This template provides the documented structure — collateral description, covenants, default triggers, and enforcement rights — that a lender needs to hold enforceable, registerable security from the first day of the financing relationship.\u003C/p>\n",1778696382720]