This collateral debenture template has 3 pages and is a MS Word file type listed under our finance & accounting documents.
Sample of our collateral debenture template:
COLLATERAL DEBENTURE This Collateral Debenture (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Holder"), 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 "Company"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS [COMPANY NAME] (herein called the "Company") for value received, acknowledges itself indebted and promises to pay to [COMPANY NAME] (herein called the "Holder"), at the offices of the Holder, in the City of [CITY], State/Province of [STATE/PROVINCE], the principal sum of [AMOUNT] of lawful money of [COUNTRY] and to pay interest thereon as set forth in paragraph 3(a) hereof in like money at the same place on the balance of the principal from time to time outstanding, computed from the date of advancement of the moneys to the Company, until payment of all moneys which may from time to time be owing hereunder or pursuant thereto, and also to pay all other moneys which may from time to time be owing hereunder or pursuant hereto. PRINCIPAL AMOUNT Subject to the provisions of this Debenture, the principal amount of this Debenture shall mature and become due and payable on demand of the Holder upon prior written notice of [NUMBER] days. INTEREST PAYMENTS This Debenture shall bear interest at the rate per annum of [percent] (%). It is agreed that the taking of a judgment or judgments under any of the covenants herein contained shall not operate as a merger of the said covenants or affect the Holder's right to interest and additional interest at the rate and times aforesaid. SECURITY As security for the payment of the principal, interest and other moneys from time to time owing on this Debenture, and the performance by the Company of all its obligations hereunder, but subject to Permitted Encumbrances in favor of the Company's bankers, [SPECIFY BANK], the Company hereby charges as and by way of a fixed and specific mortgage and charge, to and in favor of the Holder of the Collateral Debenture of the Company, all furniture, machinery, equipment, vehicles and accessories, accounts receivable and inventory hereafter acquired by the Company, together with any proceeds of sale or disposition thereof. And for the same consideration and purpose, but subject to Permitted Encumbrances in favor of the [SPECIFY BANK], the Company hereby charges as and by way of a floating charge to and in favor of the Holder of the Collateral Debenture of the Company the undertaking of the Company and all its property and assets for the time being, both present and future, and of whatsoever nature and kind and wheresoever situated (other than property and assets from time to time effectively subjected to the fixed and specific mortgages and charges created hereby or by any other instrument supplemental hereto). Such floating charge shall in no way hinder or prevent the Company, at any time and form time to time until the security hereby constituted shall have become enforceable, from pledging, charging, selling, alienating, leasing or otherwise disposing of or dealing with the property, rights and assets included in such floating charge in the ordinary course of business except to the extent specifically prohibited herein. It is hereby declared that the last day of any term of years reserved by any lease, verbal or written, or any agreement therefore, now held or hereafter acquired by the Company is hereby and shall be accepted out of the floating charge hereby created
