Bank Act Security. Without limitation of the foregoing, none of Bank of Montreal or any other Lender that takes Bank Act Security at the request of the Agent (each, a “Bank Act Security Lender”) shall take any action to enforce, foreclose on, release any Lien under, continue, extend or perfect the Bank Act Security unless the Agent agrees that such Bank Act Security Lender shall take such action, provided that the (i) partial or full release, and (ii) continuance, extension or perfection of Bank Act security liens (held by such Bank Act Security Lender on any collateral) shall be a required action by such Bank Act Security Lender if the Agent so requests or if the Agent is otherwise taking such steps with respect to the Agent’s Liens in accordance with this Agreement. In the event that a Bank Act Security Lender takes any such action such Bank Act Security Lender to take such action, or otherwise in accordance with the foregoing, such Bank Act Security Lender’s costs and expenses in its capacity as holder of the Bank Act Security shall form part of and constitute such Lender’s enforcement costs and expenses for the purposes of this Agreement, and such Bank Act Security Lender shall be entitled to the same immunities, indemnities and exclusion from liability as are prescribed in favor of the Agent in this Agreement, which shall apply mutatis mutandis. In addition to the foregoing, the provisions set forth in Article 14 with respect to the Agent shall also apply in each case to any Bank Act Security Lender as holder of the Bank Act Security. Notwithstanding anything to the contrary set forth in the Agreement, this Section may not be amended without the consent of any Bank Act Security Lender for so long such Bank Act Security Lender holds the Bank Act Security.
Bank Act Security. (a) On the date hereof, the Borrower shall have executed and delivered, and following the date hereof, each other Restricted Party, shall, to the extent permitted by all applicable Requirements of Law, execute and deliver as required by Sections 6.1(d)(vi) and 10.2(n), to each Lender that is a bank incorporated under the Bank Act (Canada) (each, a “Canadian Lender”), or as otherwise directed by the Administrative Agent, as continuing collateral security for the Facility Indebtedness, the Bank Act Security, providing the Lenders with a first priority Lien, subject only to Permitted Liens, in the Collateral charged thereunder.
Bank Act Security. What is it? Separate secured transactions regime that is federal, and it is only applicable to banks Although banks generally use the provincial PPSA systems when taking security interests in collateral, there are certain circumstances where a bank will take Bank Act security specifically with farming equipment (very popular in Sask) Why? because the paramountcy of the federal legislation allows xxxxx to ignore provincial farm protection laws This applies to Banks as an alternative kind of security covered by the Bank Act (427-429). It is inferior to a PPSA security interest Scope of the Act Section 427 Bank Act security can only be given to a bank (not credit unions) Only specified classes of debtors may grant the security on specified categories of goods BUT, the Bank Act only covers: inventory farm implements fishing boats/equipment aquaculture equipment forestry equipment Nature of the Security 427(2) The bank obtains the same rights as if it had acquired a bill of lading or warehouse receipt covering the property (ie it is non-possessory, but they obtain an interest in the goods) The security attaches to property owned by the debtor, upon delivery of the document to the bank. In respect of after-acquired property clauses, it attaches automatically once the debtor becomes the owner Obligation Secured
Bank Act Security. 49 5.16 New Locations..............................................49 5.17 Leased and Other Locations of Collateral that are Not Owned......................................49 5.18 Security...................................................50 5.19
Bank Act Security. If at any time, any Lender is a bank to which the Bank Act (Canada) applies, each Loan Party shall, upon any request from Agent on behalf of such Lender, execute and deliver to Agent on behalf of such Lender security under Section 427 of the said Act including, without limitation, a notice of intention to give security, a promise to give security and an assignment, containing terms substantially similar to the existing Collateral Documents charging or creating a security interest in Inventory of such Loan Party and, otherwise in form and substance satisfactory to Agent, together with a legal opinion and report, from a Person or Persons acceptable to Agent, with respect to the execution, delivery and enforceability of such documentation and its proper registration, all in form and substance satisfactory to Agent.
