Check the consistency. When adapting a CAG to a transaction, it is important to check both the GSA, the letter of commitment or the loan agreement, to ensure that they are consistent. This also involves ensuring that the GSA insures all personal property by which the insured party requires the guarantee, in accordance with the requirements of the letter of commitment or loan agreement. Renewal of the funding declaration. The insured party must regularly renew the funding declaration to ensure that its registration remains valid. The secured party may also be required to amend the financing statement if the debtor changes its name, participates in a merger, or if the debtor transfers the secured collateral to a third party and the secured party wishes to retain its collateral against the transferred assets. When borrowing from companies, a GSA is usually provided by a company. However, other types of business units, such as partnerships (generally or restricted), cooperatives and, more rarely, individuals, can also ensure the security of the GSA. Despite the general use, legal security requirements and support documentation are often complex and secure parties can still fall into traps with ASAs. Here are some of the most common pitfalls – and some tips for avoiding them. The insured party must register a notice regarding the interest of the collateral created by a GSA by filing a financing statement in the corresponding provincial personal property registry (PPR) and, possibly, under the U.S.
Commercial Code or elsewhere, depending on the nature of the encumbered assets. It is therefore essential to ensure that the name of the debtor executing the GSA is legally correct and that the corresponding registration complies with the provisions of the applicable Personnel Security Act (PPSA) .. . . .