This movable hypothec promissory note template has 13 pages and is a MS Word file type listed under our finance & accounting documents.
Sample of our movable hypothec promissory note template:
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
