This deed of pledge loan template has 10 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our deed of pledge loan template:
DEED OF PLEDGE This Deed of Pledge (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Lender"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Borrower"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Nominee"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] THE PARTIES HERETO HAVE AGREED AS FOLLOWS: LOAN Subject to and in accordance with all the terms and conditions of that certain promissory note executed by the Borrower in favor of the Lender, dated [DATE], a copy of which is annexed hereto as Schedule "A", as same may be amended and supplemented at any time and from time to time (the "Note"), the Borrower has borrowed from the Lender the principal amount of [AMOUNT] Dollars in the lawful currency of [COUNTRY] (the "Loan"), with interest thereon at the rate stipulated therein. PLEDGE 2.1 Pledge: As a general and continuing collateral security for the repayment by the Borrower to the Lender of the principal amount of the Loan and of all interest thereon and all other sums payable pursuant to the terms of the Note and this Deed of Pledge (collectively the "Debt"), the Borrower, in accordance with the provisions of the laws of [State/Province] of [STATE/PROVINCE], does hereby pledge and charge to and in favor of the Lender, hereunto present and accepting, the property described in Schedule "B" hereto (the "Pledged Property"). Nomination of Nominee: The Lender and Borrower hereby jointly nominate and appoint the Nominee as their representative for the purposes of obtaining and, subject to the provisions of Section 2.7 hereof, continuously retaining physical possession of the Pledged Property at the Nominee's place of business located at [NOMINEES ADDRESS] from the date of these presents until such time as the Pledge created hereunder is terminated by reason of extinction of the Loan secured hereby, and the Nominee hereby undertakes to so act. 2.3 Obligations of Nominee: The Nominee shall, in its possession of the Pledged Property, have all the obligations of a depositary under a simple voluntary deposit pursuant to the laws of [State/Province] of [STATE/PROVINCE], except as may be expressly derogated from hereinafter. 2.4 Loss or Deterioration: The Nominee shall be liable to the Borrower and the Lender for any loss or deterioration of the Pledged Property, unless he can prove that the said loss or deterioration is the result of a fortuitous event (cas fortuit) or an irresistible force (force majeure) and was not caused by any fault of the Nominee. 2.5 Expenses of Preservation: The Borrower shall reimburse the Nominee upon demand on a dollar-for-dollar basis for any necessary expenses incurred by the Nominee in the preservation of the Pledged Property. 2.6 Loss of Possession: The Nominee hereby undertakes to notify the Borrower and Lender forthwith in writing of any loss or any threat of loss of physical possession of the Pledged Property by the Nominee ("Notice of Loss of Possession"), such notice to be given in accordance with the provisions of Article 2.6 hereof. 2.7 Return of Possession to Borrower: At no time during the duration of the present Pledge shall the Nominee, return or allow the Pledged Property to be returned, in whole or in part, to the Borrower or to any person designated by the Borrower alone without the prior written consent of the Lender and upon the terms and subject to the conditions set forth in such consent. In the event of a failure to respect the provisions of this Section 2.7, the Nominee shall be personally liable to the Lender for any loss suffered by the latter as a result of any loss or reduction of the security created hereunder. Termination of Pledge: For the purposes of this Article 2.8, the Pledge shall be considered to have terminated and the Nominee shall be authorized to return the Pledged Property to the Borrower or any person designated by the Borrower upon receipt by the Nominee of written notice from the Lender attesting that the Debt has been extinguished, by payment in full or otherwise ("Notice of Extinction"). The Lender shall forward such Notice of Extinction to the Nominee and the Borrower in accordance with the provisions of Article 2.8 hereof within [NUMBER] days from the date of such extinction of the Debt. The Nominee shall, within [NUMBER] days from the date of receipt of the Notice of Extinction, release and return physical possession of the Pledged Property to the Borrower or any person designated by the Borrower to receive the physical possession of the Pledged Property in accordance with the means of delivery chosen by the Borrower and at the sole cost and expense of the Borrower. COVENANTS OF THE BORROWER The Borrower hereby warrants, covenants and agrees that: 3.1 Title to Pledged Property: He is the lawful owner of the Pledged Property; that he has good, right and lawful authority to pledge and charge the Pledged Property as provided in this Deed of Pledge; that the Pledged Property is free and clear of all liens, privileges, hypothecs, charges and encumbrances whatsoever, save and except for any undetermined or inchoate lien, privilege or charge which has not been registered or filed pursuant to law and save and except for any charges subordinated to the charge hereof; and that he shall preserve, warrant and defend his title to the Pledged Property and rights and every part thereof, for the benefit of the Lender, its successors and assigns, against the claims and demands of all persons whomsoever. 3.2 Payment of Loan, Interest and Accessories: He shall punctually pay or cause to be paid the principal of the Loan, any interest thereon and accessories thereto on the dates, at the place and in the moneys, amounts and manner provided for with respect thereto in the Note. 3.3 Payment of Taxes: He shall pay or cause to be paid as and when due and payable all taxes, rates, charges, levies or dues, assessments, ordinary or extraordinary, governmental or other charges of a like nature, assessed or payable in respect of any of the Pledged Property or assessed on the Borrower, his rights or franchises; that he shall exhibit or cause to be exhibited to the Lender when required, on demand, the receipts and vouchers establishing such payments; and that in the event of his failure to pay such sums, the Lender may (but shall be under no obligation to) do so, and all sums so paid by the Lender shall be repaid by the Borrower on demand, with interest thereon at the rate and in the manner stipulated in the Note from the date of any such payment; provided, however, that the Borrower shall not be in default hereunder in the payment of any such tax, rate, charge, levy or assessment if he shall be contesting the imposition thereof in good faith by all appropriate legal proceedings and if the Borrower shall have furnished security satisfactory to the Lender sufficient in amount to cover any loss or liability which may result should such contestation be unsuccessful. 3.4 Other Charges: He shall not permit or suffer the creation or registration of any lien, privilege, hypothec, mortgage, pledge or charge upon or in respect of the Pledged Property or any part thereof. Notwithstanding the foregoing provisions of this Section 3.4, the Borrower shall not be in default hereunder if, within [NUMBER] days of the date of registration of any such privilege, he is in good faith contesting the validity thereof by all appropriate legal proceedings and shall have furnished security satisfactory to the Lender sufficient in amount to cover any liability which may result should such contestation be unsuccessful
