Notice of Intention to Enforce Security Consent and Waiver (Creditor)

Summary

This precedent is a Consent and Waiver of a Notice to Intention to Enforce Security. The creditor intends to enforce its security after the required 10 days' notice period pursuant the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 ("BIA"). This precedent includes practical guidance and drafting notes. The BIA, Section 244(1) requires that a secured creditor or lender sends a Notice of Intention to Enforce Security to a debtor if a lender wishes to act on its security. This notice must be delivered to any debtor with at least 10 days' notice before any lender can act under the general security agreement with steps such as enforcing security and/or appointing receiver or a trustee. For the debtor, this notice marks a turning point with the lender and the debtor should take immediate steps to understand its legal obligations and options. If a debtor has received one of these notices, it may still operate its business and pursue other options such as filing a proposal or assigning ...