[{"data":1,"prerenderedAt":531},["ShallowReactive",2],{"document-movable-hypothec-promissory-note-D432":3},{"document":4,"label":26,"preview":11,"thumb":27,"thumb600":28,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":29,"breadcrumb":33,"related":41,"customDescModule":187,"customdescription":6,"mdFm":188,"mdProseHtml":530},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"MOVABLE HYPOTHEC - Promissorry Note This Moveable Hypothec - Promissory Note (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Grantor\"), 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 \"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 HAVE AGREED AND DECLARED AS FOLLOWS: 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: \"Agreement\" means that certain Agreement dated [DATE] between the Creditor as vendor and the Grantor as purchaser pursuant to which the Grantor purchased certain assets from the Creditor, which are now hypothecated hereunder; \"Balance of Price\" means the sum of [AMOUNT], subject to certain adjustments provided in the Agreement; \"Note\" means that certain promissory note in a principal amount corresponding to the Balance of Price, bearing interest at the rate of [PERCENTAGE %] Percent per annum, computed and compounded monthly, as provided for in the Agreement; \"Obligations\" means the payment and satisfaction of any and all obligations, indebtedness and liability of the Grantor to the Creditor (including interest thereon) on account of the Note including without limitation any ultimate unpaid balance thereof; \"Other Assets\" means the assets acquired by the Grantor from the Creditor pursuant to the Agreement but not included in the definitions of Property in Stock, Claim and Equipment herein provided, including without limitation those assets identified in Schedule A hereto; \"Security Agreement\" means that certain Security Agreement dated [DATE] granted by the Grantor in favor of the Creditor pursuant to [SPECIFY] of the Agreement as security for the performance by the Grantor of the Obligations. All capitalized terms not otherwise specifically defined hereunder shall have the meanings assigned thereto by the Agreement. OBLIGATIONS SECURED The hypothec hereby constituted secures the performance by the Grantor of all its Obligations, direct and indirect, absolute and contingent, presently due and hereafter to become due to the Creditor, as such Obligations may be amended, extended or renewed at any time and from time to time. Without in any way limiting the generality of the foregoing, the hypothec secures the payment by the Grantor to the Creditor of the Balance of Price and any and all interest accrued thereon and thereunder from time to time, the whole as provided for in the Note. HYPOTHEC As security for the full and final performance of the Obligations, the Grantor hereby hypothecates to and in favor of the Creditor and, with respect to that property which is incorporeal, situated outside [STATE/PROVINCE] or used in more than one State, grants a security interest to and in favor of the Creditor in, the following universalities of present and future property (collectively referred to herein as the \"Charged Property\") to the extent of [AMOUNT], with interest thereon at the rate of [PERCENTAGE %] Percent per annum: the property in stock and inventory owned by the Grantor or held on its behalf, including raw materials, products in process, merchandise, finished or manufactured products, products worked, manufactured or finished by the Grantor or others, as well as all materials related to the fabrication, packaging and expediting of same, property held by third parties pursuant to a lease, leasing contract, franchise or license agreement or any other agreement entered into with the Grantor, goods represented by bills of lading or warehouse receipts, (collectively referred to herein as the \"Property in Stock\"); the property having formed part of the Property in Stock at any time which remains the property of the Grantor pursuant to a reserve of property in its favor, notwithstanding any contract of alienation concluded with respect to such property in favor of third parties, remains subject to this hypothec so long as its ownership has not been transferred to such third parties; the Property in Stock which following its alienation becomes the property of the Grantor once again in virtue of a resolution, resiliation or repossession is also subject to the hypothec hereby constituted; all the Grantor's claims, books debts, accounts receivable, debts, book accounts, demands and rights of action against third parties which now are or may at any time hereafter be due or owing to or owned by the Grantor, including, without in any way limiting the generality of the foregoing, the rights of the Grantor in its capacity as a seller under instalment sales in respect of claims arising from such sales, any and all claims for insurance against loss as well as all indemnities payable to the Grantor in virtue of civil liability insurance contracts, property insurance contracts and contracts of insurance of persons and the rights of the Grantor in the credit balance of the accounts maintained in its favor by the Creditor (subject to the latter's rights of compensation), any financial institution or any other person, and all books, accounts, letters, invoices, papers and documents in any way evidencing or relating to the said claims, book debts, accounts receivable, debts, book accounts, demands and rights of action, together with all judgments, securities, contracts, bills of exchange, notes, hypothecs, suretyships, guarantees, security interests, letters of credit and all other rights and benefits in respect thereof which now are or may hereafter become vested in the Grantor (collectively referred to herein as the \"Claim\"); a claim, demand or right shall not be excluded from the Claim by reason only that its debtor is domiciled outside [STATE/PROVINCE] or is an affiliate (as defined in the [COUNTRY] Business Corporations Act) of the Grantor (irrespective of its [YOUR COUNTRY LAW] of incorporation), or that the claim, demand or right is not related to the Grantor's activities); all the machinery, equipment, furniture, fixtures and other movables acquired by the Grantor from the Creditor pursuant to the Agreement, as more particularly described in Schedule B hereto, including the electrical wiring to the motor starter and any process piping related to the operation of each particular piece of equipment mentioned in Schedule B hereto, including switches, starters and necessary accessories to operate such equipment now present at the location identified in Schedule C hereto (collectively, the \"Equipment\"); and the fruits and revenues of the Property in Stock, Claims and Equipment, as well as all the bills of exchange, bank drafts, securities, sums of money and expropriation indemnities delivered or paid pursuant to a sale, repurchase, distribution or other operation in respect of any of the property hypothecated in favor of the Creditor hereunder or in virtue of any other deed or contract. The Grantor and Creditor have expressly agreed that the hypothecs herein granted shall at all times be (i) first-ranking only on that portion of the Charged Property composed of Property in Stock which was purchased by the Grantor from the Creditor and Sternson Limited (\"Sternson\") pursuant to the Agreement (hereinafter, the \"Inventory\") and (ii) second-ranking in respect of the Claim and subordinate to all charges, liens, security interests and hypothecs granted by the Grantor to its principal banker(s) (the \"Bank\") for the present and future financings and borrowings of the Grantor from the Bank",null,"Movable Hypothec Promissory Note","13",104,"doc","https://templates.business-in-a-box.com/imgs/1000px/movable-hypothec_promissory-note-D432.png","https://templates.business-in-a-box.com/imgs/250px/432.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#432.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":23,"url":24},"Promissory Notes","/templates/promisory-note/","movable hypothec promissory note","Movable Hypothec Promissory Note Template","https://templates.business-in-a-box.com/imgs/400px/432.png","https://templates.business-in-a-box.com/imgs/600px/432.png",[30,16,19,22],{"label":31,"url":32},"Templates","/templates/",[34,35,38],{"label":31,"url":32},{"label":36,"url":37},"Legal Agreements","/templates/business-legal-agreements/",{"label":39,"url":40},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[42,46,50,54,58,62,66,70,74,78,82,86,90,107,125,141,155,170],{"label":43,"url":44,"thumb":45,"extension":10},"Deed of Movable Hypothec","/template/deed-of-movable-hypothec-D982","https://templates.business-in-a-box.com/imgs/250px/982.png",{"label":47,"url":48,"thumb":49,"extension":10},"Promissory Note","/template/promissory-note-D434","https://templates.business-in-a-box.com/imgs/250px/434.png",{"label":51,"url":52,"thumb":53,"extension":10},"Movable Hypothec Long Form","/template/movable-hypothec-long-form-D284","https://templates.business-in-a-box.com/imgs/250px/284.png",{"label":55,"url":56,"thumb":57,"extension":10},"Promissory Note Line of Credit","/template/promissory-note-line-of-credit-D435","https://templates.business-in-a-box.com/imgs/250px/435.png",{"label":59,"url":60,"thumb":61,"extension":10},"Collection Letter_Following Promissory Note","/template/collection-letter_following-promissory-note-D196","https://templates.business-in-a-box.com/imgs/250px/196.png",{"label":63,"url":64,"thumb":65,"extension":10},"Demand to Pay Promissory Note","/template/demand-to-pay-promissory-note-D207","https://templates.business-in-a-box.com/imgs/250px/207.png",{"label":67,"url":68,"thumb":69,"extension":10},"Promissory Note With Acknowledgment","/template/promissory-note-with-acknowledgment-D437","https://templates.business-in-a-box.com/imgs/250px/437.png",{"label":71,"url":72,"thumb":73,"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":75,"url":76,"thumb":77,"extension":10},"Guarantee of Claim Promissory Note","/template/guarantee-of-claim-promissory-note-D884","https://templates.business-in-a-box.com/imgs/250px/884.png",{"label":79,"url":80,"thumb":81,"extension":10},"Letter of Default on Promissory Note","/template/letter-of-default-on-promissory-note-D431","https://templates.business-in-a-box.com/imgs/250px/431.png",{"label":83,"url":84,"thumb":85,"extension":10},"Promissory Note With Acceleration Clause","/template/promissory-note-with-acceleration-clause-D436","https://templates.business-in-a-box.com/imgs/250px/436.png",{"label":87,"url":88,"thumb":89,"extension":10},"Security Agreement and Promissory Note","/template/security-agreement-and-promissory-note-D912","https://templates.business-in-a-box.com/imgs/250px/912.png",{"description":91,"descriptionCustom":6,"label":92,"pages":93,"size":94,"extension":10,"preview":95,"thumb":96,"svgFrame":97,"seoMetadata":98,"parents":100,"keywords":99,"url":106},"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":99,"description":6},"loan agreement",[101,103,105],{"label":17,"url":102},"finance-accounting",{"label":20,"url":104},"business-loan",{"label":20,"url":104},"/template/loan-agreement-D417",{"description":108,"descriptionCustom":6,"label":109,"pages":110,"size":111,"extension":10,"preview":112,"thumb":113,"svgFrame":114,"seoMetadata":115,"parents":116,"keywords":123,"url":124},"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},[117,120],{"label":118,"url":119},"Production & Operations","production-operations",{"label":121,"url":122},"Equipment Agreement","equipment-agreement","equipment lease agreement","/template/equipment-lease-agreement-D1140",{"description":126,"descriptionCustom":6,"label":127,"pages":128,"size":94,"extension":10,"preview":129,"thumb":130,"svgFrame":131,"seoMetadata":132,"parents":134,"keywords":133,"url":140},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), 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] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":133,"description":6},"non disclosure agreement nda",[135,137],{"label":36,"url":136},"business-legal-agreements",{"label":138,"url":139},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":142,"descriptionCustom":6,"label":143,"pages":144,"size":145,"extension":10,"preview":146,"thumb":147,"svgFrame":148,"seoMetadata":149,"parents":150,"keywords":153,"url":154},"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},[151,152],{"label":36,"url":136},{"label":36,"url":136},"security agreement","/template/security-agreement-D915",{"description":156,"descriptionCustom":6,"label":157,"pages":93,"size":94,"extension":10,"preview":158,"thumb":159,"svgFrame":160,"seoMetadata":161,"parents":163,"keywords":162,"url":169},"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":162,"description":6},"personal guarantee",[164,165,166],{"label":17,"url":102},{"label":20,"url":104},{"label":167,"url":168},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":171,"descriptionCustom":6,"label":172,"pages":173,"size":94,"extension":10,"preview":174,"thumb":175,"svgFrame":176,"seoMetadata":177,"parents":179,"keywords":178,"url":186},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: OFFICIAL DEMAND LETTER REGARDING [DESCRIBE] Dear [CONTACT NAME], Based on our records, you were required to have paid $ [AMOUNT] USD (the \"Debt\") to [COMPANY NAME] on [DATE], for [SERVICE REQUIRING PAYMENT]. This Debt remains outstanding, despite our initial requests for payment. ","Demand Letter","1","https://templates.business-in-a-box.com/imgs/1000px/demand-letter-D13262.png","https://templates.business-in-a-box.com/imgs/250px/13262.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13262.xml",{"title":178,"description":6},"demand letter",[180,183],{"label":181,"url":182},"Human Resources","human-resources",{"label":184,"url":185},"Company Policies","company-policies","/template/demand-letter-D13262",false,{"seo":189,"reviewer":200,"quick_facts":204,"at_a_glance":207,"personas":211,"variants":236,"glossary":262,"clauses":298,"how_to_fill":349,"common_mistakes":390,"faqs":415,"industries":443,"comparisons":460,"diy_vs_lawyer":474,"jurisdictions":487,"related_template_ids_curated":508,"schema":517,"classification":518},{"meta_title":190,"meta_description":191,"primary_keyword":25,"secondary_keywords":192},"Movable Hypothec Promissory Note Template (Free Word)","Free movable hypothec promissory note template. Documents a secured loan against movable property with payment terms, interest, and enforcement rights. Free Word and PDF download.",[193,194,195,196,197,198,199],"movable hypothec promissory note template","hypothec agreement template","movable property security agreement","promissory note with collateral","secured loan agreement template word","hypothec note free download","business promissory note template",{"name":201,"credential":202,"reviewed_date":203},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":205,"legal_review_recommended":206,"signature_required":206},"advanced",true,{"what_it_is":208,"when_you_need_it":209,"whats_inside":210},"A Movable Hypothec Promissory Note is a legally binding instrument that combines a written promise to repay a loan with a security interest (hypothec) granted over the borrower's movable — that is, personal or non-real-estate — property. This free Word download gives lenders and borrowers a structured, attorney-informed starting point they can edit online and export as PDF, covering principal amount, interest rate, repayment schedule, collateral description, and enforcement rights in a single document.\n","Use it when a lender advances funds to a borrower and requires a registered or unregistered security interest over movable assets — such as equipment, inventory, vehicles, accounts receivable, or intellectual property — as collateral for repayment. It is common in Quebec civil-law transactions, cross-border secured lending, and asset-based financing arrangements where real property is not available as security.\n","Borrower and lender identification, principal amount and disbursement date, interest rate and calculation method, repayment schedule, collateral description and hypothec grant, representations and warranties, default and acceleration provisions, registration obligations, and governing law.\n",[212,216,220,224,228,232],{"title":213,"use_case":214,"icon_asset_id":215},"Private lenders","Securing a business loan against the borrower's equipment or inventory","persona-private-lender",{"title":217,"use_case":218,"icon_asset_id":219},"Small business owners","Borrowing against movable assets to finance operations or expansion","persona-small-business-owner",{"title":221,"use_case":222,"icon_asset_id":223},"Equipment financing companies","Documenting a secured advance tied to specific machinery or vehicles","persona-equipment-financier",{"title":225,"use_case":226,"icon_asset_id":227},"Startup founders","Pledging intellectual property or receivables as collateral for bridge financing","persona-startup-founder",{"title":229,"use_case":230,"icon_asset_id":231},"Commercial lawyers","Drafting a hypothec note for a client's asset-based lending transaction","persona-commercial-lawyer",{"title":233,"use_case":234,"icon_asset_id":235},"Accountants and CFOs","Structuring a secured intercompany or third-party loan with registered collateral","persona-cfo",[237,241,244,248,252,256,259],{"situation":238,"recommended_template":239,"slug":240},"Securing a loan against real estate or immovable property","Immovable Hypothec Promissory Note","movable-hypothec-promissory-note-D432",{"situation":242,"recommended_template":47,"slug":243},"Unsecured personal or business loan with no collateral","promissory-note-D434",{"situation":245,"recommended_template":246,"slug":247},"Securing a loan against a specific vehicle","Vehicle Security Agreement","security-agreement-D915",{"situation":249,"recommended_template":250,"slug":251},"Pledge of shares or securities as collateral","Share Pledge Agreement","share-donation-agreement-D341",{"situation":253,"recommended_template":254,"slug":255},"Ongoing revolving credit secured by accounts receivable","Revolving Credit Agreement","revolving-credit-agreement-D14051",{"situation":257,"recommended_template":109,"slug":258},"Equipment lease with purchase option and security interest","equipment-lease-agreement-D1140",{"situation":260,"recommended_template":92,"slug":261},"Multi-creditor syndicated secured loan","loan-agreement-D417",[263,266,269,271,274,277,280,283,286,289,292,295],{"term":264,"definition":265},"Hypothec","A civil-law security right granted over property — movable or immovable — that allows a creditor to seize and sell the property if the debtor defaults, without requiring physical possession.",{"term":267,"definition":268},"Movable Property","Property that is not fixed to land — including equipment, vehicles, inventory, accounts receivable, intellectual property, and financial instruments.",{"term":47,"definition":270},"A written, unconditional promise by a borrower to repay a specified sum to a lender at a defined time or on demand, under stated interest and payment terms.",{"term":272,"definition":273},"Principal Amount","The original sum of money lent, before interest or fees accrue.",{"term":275,"definition":276},"Acceleration Clause","A provision that makes the entire outstanding loan balance immediately due and payable upon a defined event of default.",{"term":278,"definition":279},"Registration (PPSA / CCQ)","The act of filing a security interest in a public registry — such as a provincial PPSA registry in Canada or the Register of Personal and Movable Real Rights (RPMRR) in Quebec — to establish priority over other creditors.",{"term":281,"definition":282},"Default","Any borrower failure or breach — including missed payments, insolvency, or breach of a covenant — that triggers the lender's enforcement rights under the note.",{"term":284,"definition":285},"Priority","The order in which competing secured creditors have claims against the same collateral, generally determined by the date of registration.",{"term":287,"definition":288},"Collateral","The specific movable assets described in the hypothec grant over which the lender holds a security interest as repayment assurance.",{"term":290,"definition":291},"Enforcement","The legal process — including seizure, sale, or taking in payment — by which a secured creditor realizes on collateral after a borrower's default.",{"term":293,"definition":294},"Floating Charge","A security interest that attaches to a changing pool of assets — such as all present and after-acquired inventory — rather than specific identified items.",{"term":296,"definition":297},"Subordination","An agreement by one creditor to rank its security interest behind that of another, allowing a senior lender to have first claim on collateral proceeds.",[299,304,309,314,319,324,329,334,339,344],{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Parties and recitals","Identifies the lender and borrower as legal entities, states the date of execution, and sets out the background purpose of the loan.","This Movable Hypothec Promissory Note is entered into as of [DATE] between [LENDER LEGAL NAME], a [ENTITY TYPE] incorporated under the laws of [JURISDICTION] ('Lender'), and [BORROWER LEGAL NAME], a [ENTITY TYPE] ('Borrower').","Using a trade name instead of the registered legal entity name — enforcement proceedings require the exact legal name, and a mismatch can delay or void seizure of collateral.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Promise to pay (principal and interest)","States the borrower's unconditional obligation to repay the principal amount plus interest at a specified rate, calculated on a defined basis.","For value received, Borrower unconditionally promises to pay to the order of Lender the principal sum of $[AMOUNT] [CURRENCY], together with interest at the rate of [X]% per annum, calculated [monthly / daily] on the outstanding balance.","Omitting the interest calculation basis (daily vs. monthly compounding) — the difference can represent thousands of dollars over a multi-year term and becomes a source of dispute at maturity.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Repayment schedule","Sets out when and how the borrower must repay — whether in equal instalments, a balloon payment, or on demand — and the currency of payment.","Borrower shall repay the principal and accrued interest in [NUMBER] equal [monthly / quarterly] instalments of $[INSTALMENT AMOUNT], commencing [DATE], with the final instalment due on [MATURITY DATE]. All payments shall be made in [CURRENCY] to [PAYMENT ACCOUNT DETAILS].","Using 'on demand' language without also specifying a maximum term — in several jurisdictions, an undated demand note can be called immediately, which may not reflect the parties' intent and can trigger unintended default.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Hypothec grant and collateral description","Creates the security interest by having the borrower grant the lender a hypothec over described movable property as collateral for the loan.","As security for all amounts owing under this Note, Borrower hereby grants to Lender a hypothec on all present and future [DESCRIPTION OF COLLATERAL — e.g., equipment, inventory, accounts receivable] of Borrower, described in Schedule A, for the amount of $[HYPOTHEC AMOUNT] bearing interest at [X]% per annum.","Describing collateral too narrowly — for example, listing only currently owned equipment rather than 'all present and after-acquired equipment' — leaves newly purchased assets outside the security and creates gaps in the lender's protection.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Registration obligations","Identifies which party is responsible for registering the hypothec in the applicable public registry and within what timeframe, to perfect the security interest and establish priority.","Lender may, at Borrower's expense, register this hypothec in the [RPMRR / applicable PPSA registry / UCC filing office] within [X] business days of execution. Borrower shall execute all further documents and take all steps reasonably required to perfect and maintain such registration.","Failing to register at all or registering after advancing funds — an unregistered hypothec may rank behind subsequently registered creditors, leaving the lender unsecured in an insolvency.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Representations and warranties","The borrower confirms that it owns the collateral free and clear of other encumbrances, has authority to grant the hypothec, and that no default or insolvency event has occurred.","Borrower represents and warrants that: (a) it has good and marketable title to the Collateral, free of all liens and encumbrances except as disclosed; (b) it has full legal authority to grant this hypothec; and (c) no event of default or insolvency proceeding is pending or threatened.","Omitting a warranty that the collateral is free of prior encumbrances — if the borrower has already pledged the same assets to another lender, the new lender's security may be subordinate or worthless.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Events of default and acceleration","Lists specific triggering events — missed payments, insolvency, breach of covenants, material adverse change — that allow the lender to declare the full outstanding balance immediately due.","Each of the following constitutes an Event of Default: (a) failure to pay any amount due within [X] days of its due date; (b) Borrower becoming insolvent or subject to any bankruptcy or reorganization proceeding; (c) breach of any representation, warranty, or covenant herein; (d) any material adverse change in Borrower's financial condition.","Drafting an excessively broad material adverse change clause without a cure period — courts in several jurisdictions have refused to enforce acceleration triggered by ambiguous MAC definitions, rendering the clause ineffective.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Enforcement rights","Specifies what the lender may do upon default — including seizing the collateral, selling it by private sale or public auction, or taking the property in payment — and the notice required before doing so.","Upon an Event of Default, Lender may, after giving [X] days' prior written notice to Borrower, exercise any or all of the following remedies: (a) declare the entire outstanding balance immediately due; (b) seize and sell the Collateral by private sale or public auction; (c) take the Collateral in payment of all amounts owed, subject to applicable law.","No notice period before enforcement — most civil-law and common-law jurisdictions require minimum notice to the borrower before seizure; skipping it can void the enforcement proceeding entirely.",{"name":340,"plain_english":341,"sample_language":342,"common_mistake":343},"Prepayment","States whether the borrower may repay the loan before maturity and whether a prepayment penalty applies.","Borrower may prepay the outstanding principal balance, in whole or in part, upon [X] days' written notice to Lender, [without penalty / subject to a prepayment fee of [X]% of the amount prepaid].","Silence on prepayment — in Quebec and several other civil-law jurisdictions, a borrower may have a statutory right to prepay; failing to address this in the note leaves the lender unable to collect a prepayment premium.",{"name":345,"plain_english":346,"sample_language":347,"common_mistake":348},"Governing law and dispute resolution","Specifies which jurisdiction's law governs the note and how disputes are resolved — courts, arbitration, or mediation.","This Note is governed by the laws of [PROVINCE / STATE / COUNTRY]. Any dispute arising hereunder shall be submitted to the exclusive jurisdiction of the courts of [CITY / PROVINCE], except that Lender may seek injunctive or enforcement relief in any competent court.","Choosing a governing law that does not correspond to where the collateral is located — in rem enforcement rights are governed by the law of the jurisdiction where the asset physically sits, not necessarily the law governing the underlying note.",[350,355,360,365,370,375,380,385],{"step":351,"title":352,"description":353,"tip":354},1,"Enter the legal names of both parties","Use the full registered legal names — not trade names or abbreviations — for both lender and borrower. Include the entity type (corporation, partnership, individual) and jurisdiction of incorporation.","Cross-check the borrower's name against a corporate registry search before executing — a name mismatch between the note and the registry filing can invalidate enforcement.",{"step":356,"title":357,"description":358,"tip":359},2,"State the principal amount, currency, and disbursement date","Enter the exact loan amount in numerals and words, the currency, and the date funds will be advanced. If disbursement occurs in tranches, attach a disbursement schedule as an appendix.","For cross-border transactions, specify whether exchange rate fluctuations are absorbed by the borrower or fixed at the disbursement-date rate.",{"step":361,"title":362,"description":363,"tip":364},3,"Define the interest rate and calculation method","Set the annual interest rate and specify whether it compounds daily or monthly. For variable rates, define the reference rate (e.g., prime + X%) and the reset frequency.","In Canada, criminal interest provisions cap the effective annual rate at 60% — confirm your all-in rate does not exceed this ceiling, including any fees.",{"step":366,"title":367,"description":368,"tip":369},4,"Set the repayment schedule","Choose the payment structure — equal monthly instalments, quarterly payments, interest-only with balloon, or on-demand — and enter the first payment date and maturity date.","On-demand notes are callable immediately in most jurisdictions; use a fixed-term schedule unless you genuinely need demand repayment flexibility.",{"step":371,"title":372,"description":373,"tip":374},5,"Describe the collateral precisely","Complete Schedule A with a specific description of the hypothecated movable property. For equipment, include make, model, serial number, and location. For floating charges over inventory or receivables, use 'all present and after-acquired' language.","The collateral description in the note must match what you register in the applicable public registry exactly — discrepancies can defeat priority claims.",{"step":376,"title":377,"description":378,"tip":379},6,"List the events of default and cure periods","Review and customize the default triggers to match the transaction's risk profile. Set cure periods of 5–15 days for payment defaults and 30 days for covenant breaches, unless the risk warrants immediate acceleration.","For borrowers in regulated industries, add sector-specific default triggers — loss of a key licence or permit is a material event that standard templates may not capture.",{"step":381,"title":382,"description":383,"tip":384},7,"Confirm registration jurisdiction and assign responsibility","Identify the correct registry — the RPMRR in Quebec, the applicable provincial PPSA registry elsewhere in Canada, or UCC Article 9 filings in the US — and confirm which party bears registration costs.","Registration must occur before or immediately after advancing funds; delay creates a window during which the borrower could grant a competing security to another lender.",{"step":386,"title":387,"description":388,"tip":389},8,"Execute before advancing funds","Both parties must sign the note and any schedules before or on the date of disbursement. For corporate borrowers, obtain a board resolution authorizing execution alongside the signed note.","Notarization of the hypothec is required for enforcement without court proceedings in Quebec (acte authentique) — confirm with local counsel whether notarial form is needed for your transaction.",[391,395,399,403,407,411],{"mistake":392,"why_it_matters":393,"fix":394},"Failing to register the hypothec before advancing funds","An unregistered security interest may rank behind a subsequently registered creditor, leaving the lender effectively unsecured in an insolvency — even if their note was signed first.","File the registration in the applicable registry on or before the disbursement date and retain a confirmed filing number as proof of priority.",{"mistake":396,"why_it_matters":397,"fix":398},"Describing collateral too narrowly","A hypothec covering only currently owned assets leaves any property acquired after signing outside the security, giving the lender no claim against the borrower's growing asset base.","Use 'all present and after-acquired' language for movable asset classes like inventory, equipment, and receivables, and update Schedule A as new high-value assets are acquired.",{"mistake":400,"why_it_matters":401,"fix":402},"Omitting a cure period in the default clause","Acceleration triggered by technical defaults — a missed payment cleared the next day — exposes the lender to bad-faith claims and can make enforcement proceedings unenforceable in court.","Build in a minimum 5-day cure period for payment defaults and 30 days for most covenant breaches, with written notice required before acceleration is triggered.",{"mistake":404,"why_it_matters":405,"fix":406},"Choosing a governing law that conflicts with the collateral's location","Enforcement rights against physical assets are governed by the law of the jurisdiction where those assets sit — a note governed by New York law cannot override Quebec's Civil Code enforcement rules for collateral located in Montreal.","Align the governing law with the primary jurisdiction where the collateral is located, or add a specific clause addressing multi-jurisdiction collateral separately.",{"mistake":408,"why_it_matters":409,"fix":410},"No board resolution for a corporate borrower","A corporate officer signing without proper board authorization may render the hypothec voidable as an ultra vires act, leaving the lender with an unenforceable security interest.","Require the borrower to deliver a certified copy of a board resolution specifically authorizing the loan and the hypothec grant before releasing funds.",{"mistake":412,"why_it_matters":413,"fix":414},"Silence on prepayment rights and penalties","Statutory prepayment rights in several jurisdictions allow borrowers to repay early without penalty — if the note does not address this, the lender cannot collect a break fee even if one was agreed verbally.","Address prepayment explicitly: either confirm the right without penalty or state a specific prepayment premium formula that the borrower acknowledges in writing at signing.",[416,419,422,425,428,431,434,437,440],{"question":417,"answer":418},"What is a movable hypothec promissory note?","A movable hypothec promissory note is a single legal instrument that combines two functions: a promissory note (an unconditional written promise to repay a loan) and a hypothec (a civil-law security interest) granted over the borrower's movable — non-real-estate — property. It gives the lender both a personal obligation from the borrower and a real right against specific assets if the borrower defaults. The document is particularly common in Quebec and other civil-law jurisdictions, as well as cross-border transactions where movable assets serve as the primary collateral.\n",{"question":420,"answer":421},"What is the difference between a hypothec and a mortgage?","A mortgage is a common-law security interest typically granted over real estate (immovable property). A hypothec is the civil-law equivalent but applies to both movable and immovable property. In Quebec, the hypothec is the primary security instrument for all types of collateral. In other Canadian provinces and in the US, the equivalent over movable property is a security interest governed by PPSA or UCC Article 9 — functionally similar but governed by different registration and enforcement rules.\n",{"question":423,"answer":424},"Does a movable hypothec need to be registered to be enforceable?","Registration is not required for the hypothec to exist between the parties, but it is required to make the security interest enforceable against third parties — including other creditors, a trustee in bankruptcy, and a subsequent purchaser of the collateral. In Quebec, registration in the Register of Personal and Movable Real Rights (RPMRR) is necessary to perfect the hypothec and establish priority. In common-law provinces, registration under the applicable PPSA serves the same purpose. An unregistered hypothec is effectively unsecured in an insolvency.\n",{"question":426,"answer":427},"What types of movable property can be hypothecated?","Virtually any movable asset can be hypothecated, including equipment and machinery, vehicles and fleets, inventory, accounts receivable, intellectual property (patents, trademarks, software), financial instruments, and claims against third parties. In Quebec, a hypothec can also be granted over a universality of movable assets — all present and future assets of a business — making it functionally similar to a general security agreement in common-law jurisdictions.\n",{"question":429,"answer":430},"What happens when a borrower defaults on a movable hypothec promissory note?","Upon default, the lender must typically give advance written notice to the borrower before exercising enforcement rights. In Quebec, the Civil Code requires a 20-day prior notice before taking in payment or selling the collateral, except where the collateral is at risk of depreciation. The lender may then seize and sell the collateral by private sale or public auction, apply the proceeds to the outstanding debt, and pursue the borrower personally for any deficiency balance under the promissory note.\n",{"question":432,"answer":433},"Is notarization required for a movable hypothec in Quebec?","In Quebec, a movable hypothec on an enterprise's assets can be created by a private document — notarization is not required for it to be valid between the parties. However, a hypothec granted by a natural person (not an enterprise) over certain classes of assets, or one intended to be enforced without court proceedings, may need to be executed before a notary as an authentic act. Consult a Quebec notary or lawyer to confirm which form is required for your specific transaction.\n",{"question":435,"answer":436},"How is a movable hypothec promissory note different from a general security agreement?","A general security agreement (GSA) is a common-law instrument used in provinces outside Quebec and in the US to create a security interest over movable property under PPSA or UCC Article 9. A movable hypothec is the civil-law equivalent used primarily in Quebec under the Civil Code of Quebec. Both achieve similar commercial outcomes — securing a loan against personal property — but they differ in terminology, registration regimes, enforcement procedures, and the degree of judicial oversight required before enforcement. Cross-border lenders sometimes use both instruments when collateral spans Quebec and other provinces.\n",{"question":438,"answer":439},"Who typically uses a movable hypothec promissory note?","Private lenders, equipment financing companies, and commercial banks use this document to secure loans against a business's movable assets. Small and medium-sized businesses use it when borrowing against equipment, inventory, or receivables without real estate to offer as security. Startups may use it to pledge intellectual property or future receivables as bridge financing collateral. It is also common in intercompany loans within corporate groups operating in Quebec.\n",{"question":441,"answer":442},"Do I need a lawyer to prepare a movable hypothec promissory note?","For straightforward transactions with clearly identified collateral and a domestic borrower, a high-quality template provides a solid foundation. Legal review is strongly recommended when the loan exceeds $100,000, the collateral spans multiple jurisdictions, the borrower is a natural person (consumer protection rules apply), enforcement without court proceedings is anticipated, or the hypothec must be notarized for full effect in Quebec. A Quebec notary or commercial lawyer typically charges $500–$2,000 for a review and registration filing.\n",[444,448,452,456],{"industry":445,"icon_asset_id":446,"specifics":447},"Manufacturing","industry-manufacturing","Hypothecs over production equipment, machinery, and raw material inventory are standard collateral in equipment financing and working capital facilities for manufacturers.",{"industry":449,"icon_asset_id":450,"specifics":451},"Transportation and Logistics","industry-transportation","Vehicle fleets, trailers, and logistics equipment are commonly hypothecated; lenders require VIN-level collateral descriptions and may register against each vehicle separately.",{"industry":453,"icon_asset_id":454,"specifics":455},"Technology / SaaS","industry-saas","IP assets — patents, trademarks, proprietary software, and domain names — are increasingly used as hypothec collateral for bridge loans and venture debt in tech companies.",{"industry":457,"icon_asset_id":458,"specifics":459},"Retail / Wholesale","industry-retail","Floating hypothecs over present and after-acquired inventory are standard for retailers and distributors; lenders require periodic inventory reports as a covenant condition.",[461,464,467,471],{"vs":47,"vs_template_id":462,"summary":463},"promissory-note-D416","A standard promissory note is an unsecured written promise to repay a loan — the lender has no claim against specific assets if the borrower defaults, only a personal obligation. A movable hypothec promissory note adds a security interest over defined collateral, giving the lender priority over that property in an insolvency. Use a simple promissory note only for low-risk, trust-based loans where collateral is unnecessary or unavailable.",{"vs":92,"vs_template_id":465,"summary":466},"loan-agreement-D166","A loan agreement is a comprehensive multi-party contract governing a lending relationship — it typically includes detailed covenants, representations, conditions precedent, and drawdown mechanics. A movable hypothec promissory note is a more streamlined instrument combining the payment obligation and security grant in one document. Loan agreements suit complex or syndicated facilities; a hypothec note suits bilateral secured loans where simplicity and enforceability are the priority.",{"vs":468,"vs_template_id":469,"summary":470},"General Security Agreement","D{PLACEHOLDER_GSA_ID}","A general security agreement (GSA) is the common-law equivalent of a movable hypothec, used in Canadian provinces outside Quebec and in the US under PPSA or UCC Article 9. The instruments achieve the same commercial outcome but differ in governing law, registration regime, and enforcement process. A movable hypothec is the correct instrument for Quebec-governed transactions; a GSA applies in Ontario, British Columbia, and other common-law provinces.",{"vs":109,"vs_template_id":472,"summary":473},"equipment-lease-agreement-D12721","An equipment lease agreement transfers use — not ownership — of an asset to the lessee for a defined term in exchange for rental payments; the lessor retains title and repossesses the equipment on default. A movable hypothec note involves a true loan: the borrower owns the asset, grants a security interest to the lender, and must repay the principal plus interest. Use a lease when the borrower does not want to own the asset outright; use a hypothec note when the borrower is purchasing or already owns the collateral.",{"use_template":475,"template_plus_review":479,"custom_drafted":483},{"best_for":476,"cost":477,"time":478},"Bilateral secured loans under $100,000 with clearly identified, single-jurisdiction movable collateral","Free","30–60 minutes",{"best_for":480,"cost":481,"time":482},"Loans over $100,000, Quebec notarization requirements, or collateral spanning multiple asset classes","$500–$2,000","2–5 business days",{"best_for":484,"cost":485,"time":486},"Cross-border transactions, syndicated facilities, natural-person borrowers subject to consumer protection rules, or enforcement-without-court-proceedings anticipated","$2,000–$8,000+","1–3 weeks",[488,493,498,503],{"code":489,"name":490,"flag_asset_id":491,"note":492},"us","United States","flag-us","In the US, the functional equivalent of a movable hypothec is a security agreement governed by UCC Article 9. Perfection requires filing a UCC-1 financing statement with the Secretary of State in the borrower's state of organization. There is no concept of a 'hypothec' in US law, but the instrument is recognized for cross-border transactions involving Quebec-based borrowers. Usury laws vary by state — confirm the interest rate does not exceed the applicable cap.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"ca","Canada","flag-ca","The movable hypothec is a creature of Quebec's Civil Code (Articles 2660–2802 CCQ) and is the primary security instrument for movable property in that province. Registration in the RPMRR is required for perfection. Outside Quebec, the equivalent is a PPSA security interest filed in the applicable provincial registry. Cross-province transactions may require both a hypothec and a PPSA registration. Quebec's 20-day prior notice rule before enforcement (Article 2758 CCQ) is mandatory and cannot be contracted out of.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"uk","United Kingdom","flag-uk","England and Wales do not use the term 'hypothec' for movable property — the equivalent instruments are a fixed charge (over specific assets) or a floating charge (over a class of assets), typically contained in a debenture. Scottish law does recognize a limited form of hypothec over certain movable property. Charges granted by UK companies must be registered at Companies House within 21 days of creation under the Companies Act 2006 or they are void against liquidators and creditors.",{"code":504,"name":505,"flag_asset_id":506,"note":507},"eu","European Union","flag-eu","Civil-law EU member states — France, Belgium, Luxembourg, and others — recognize movable hypothecs or functionally equivalent pledges (nantissement in France, gage in Belgium) under their respective civil codes. The EU Financial Collateral Directive (2002/47/EC) facilitates cross-border security over financial instruments and cash. Registration requirements, priority rules, and enforcement procedures vary significantly by member state; French loi Macron reforms in 2015 simplified movable security registration via the Registre national des sûretés mobilières (RNSM). GDPR considerations apply where borrower personal data is processed in connection with enforcement.",[243,261,258,509,247,510,511,512,513,514,515,516],"non-disclosure-agreement-nda-D12692","personal-guarantee-D405","demand-letter-D13262","board-resolution-D78","independent-contractor-agreement-D160","bill-of-sale-D1229","purchase-order-D1411","letter-of-intent_acquisition-of-business-D5197",{"emit_how_to":206,"emit_defined_term":206},{"primary_folder":136,"secondary_folder":519,"document_type":520,"industry":521,"business_stage":522,"tags":523,"confidence":529},"loans-and-promissory-notes","agreement","general","all-stages",[524,525,526,527,528],"promissory-note","movable-hypothec","loan-security","collateral","lending",0.95,"\u003Ch2>What is a Movable Hypothec Promissory Note?\u003C/h2>\n\u003Cp>A \u003Cstrong>Movable Hypothec Promissory Note\u003C/strong> is a legally binding instrument that combines two distinct legal mechanisms into a single document: a \u003Cstrong>promissory note\u003C/strong> — an unconditional written promise by a borrower to repay a specified sum with interest — and a \u003Cstrong>movable hypothec\u003C/strong> — a civil-law security interest granted over the borrower's non-real-estate property as collateral for that repayment obligation. Rooted in Quebec's Civil Code and functionally similar to a secured promissory note under common-law systems, it gives the lender both a personal claim against the borrower and a real right against defined assets — equipment, inventory, vehicles, intellectual property, or receivables — that can be enforced through seizure or sale upon default. Unlike an unsecured note, it establishes a priority ranking against other creditors when registered in the applicable public registry, making it a foundational instrument in asset-based and private lending transactions.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Advancing funds without a signed movable hypothec promissory note leaves a lender in a vulnerable position on multiple fronts simultaneously. Without the promissory note component, there is no clear, enforceable record of the repayment obligation — interest rate, payment schedule, and maturity date become matters of disputed recollection rather than contract. Without the hypothec component, the lender is an unsecured creditor: if the borrower becomes insolvent, secured creditors with registered interests recover first, and unsecured lenders typically receive cents on the dollar, if anything. Without registration, even a properly drafted hypothec may rank behind a later-registered competing security interest, stripping the lender of the priority they believed they held. For borrowers, the document provides equal certainty: agreed terms are fixed in writing, prepayment rights are documented, and there is no ambiguity about what assets are encumbered and on what conditions they can be released. This template provides a structured, attorney-informed starting point that addresses all of these risks — reducing drafting time, prompting the key decisions both parties must make before funds change hands, and ensuring the note is ready for registration from day one.\u003C/p>\n",1781186016202]