This letter of direction payment of acquisition price template has 3 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our letter of direction payment of acquisition price template:
LETTER OF DIRECTION PAYMENT OF ACQUISITION PRICE This Letter of Direction - Payment of Acquisition Price (the "Agreement") is effective [DATE], BETWEEN: [LENDER 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: [YOUR 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] WHEREAS [LENDER] made a financing proposal to [BORROWER] dated [DATE], which the Borrower accepted on [DATE] (the "Proposal"); WHEREAS the Lender and the Borrower have entered into a certain Contract of Loan and Hypothec dated concurrently herewith providing, inter alia, for the loan by the Lender to the Borrower of the sum of [AMOUNT] (the "Loan Proceeds") for the purpose of assisting the Borrower in the acquisition of the equipment listed in [SPECIFY] (the "Equipment") from [SPECIFY COMPANY], upon the terms and conditions set out therein (the "Contract"); WHEREAS [SPECIFY NAME] (the "Surety") has executed a certain Guarantee, Assignment and Postponement of Claim with respect to the obligations of the Borrower under the Contract in favour of the Lender, which the Lender has accepted (the "Guarantee"); WHEREAS certain of the closing and post-closing items set out in the closing agenda annexed hereto (the "Agenda") and certain of the conditions set out in the Proposal have not yet been met; WHEREAS the Lender has tendered to [SPECIFY] in trust a cheque in the amount of [AMOUNT] in lawful currency of [COUNTRY] (the "Funds"), which amount represents the aggregate of the disbursement of the Loan Proceeds by the Lender in the amount of [AMOUNT] in lawful currency of [COUNTRY] and the payment of the balance of the acquisition cost for the Equipment ("Balance of Cost") by the Borrower, to be held by [SPECIFY] as herein directed. NOW THEREFORE THE LENDER AND THE BORROWER HEREBY JOINTLY DIRECT [SPECIFY] AS FOLLOWS: [SPECIFY] is to deposit the Funds in its trust account, pending receipt of written confirmation jointly from the Lender and the Borrower (the "Joint Confirmation") that all closing and post-closing items set out in the Agenda have been accomplished and that all conditions set out in the Proposal have been met, and in particular, without limiting the generality of the foregoing, that the Contract has been registered at the Register for Personal and Movable Real Rights without adverse entries, and that the Borrower has delivered to the Lender a waiver and subordinations from its bankers and that Lender's counsel has reviewed same and declared it to be satisfactory. Such Joint Confirmation shall be delivered to [SPECIFY] in writing with specific reference to this Letter of Direction by registered mail or delivered by hand and shall be deemed to have been duly delivered [NUMBER] days after being placed in the post and mailed by registered mail (provided there are no postal disruptions), or upon receipt if delivered by hand, as follows, or on the date following the date of expedition if sent by telecopier: [NAME] [ADDRESS] [COUNTRY] [STATE/PROVINCE] Attention : [SPECIFY NAME] Telecopier Number : [FAX NUMBER] Upon receipt of the Joint Confirmation, [SPECIFY] shall deliver a cheque in the amount of [AMOUNT] in lawful currency of the [COUNTRY] payable to the order of [SPECIFY], to [SPECIFY] at [ADDRESS], in payment of the acquisition cost for the Equipment. All interest accrued on the Funds attributable to the Loan Proceeds shall be paid at that time to the Lender and all interest accrued on the Funds attributable to the Balance of Cost shall be paid at that time to the Borrower.
