The Rural Voice, 1992-08, Page 19This written document is common-
ly used to secure monies advanced for
the purpose of the purchase of equip-
ment or machinery or funds advanced
on the strength of the value of equip-
ment and machinery. The equipment
covered by the chattel mortgage re-
mains secured in favour of the lender
until the debt is retired.
Land mortgage
A land mortgage is a form of
security evidenced by a written
document creating an interest in
favour of the lender in land and
premises.
Until the debt is retired, the
mortgage continues to secure the land
and premises and the bank, therefore,
has a claim to the land and premises.
In the event that there is default in
payment pursuant to the mortgage, the
bank can sell the property by Power of
Sale in order to satisfy the debt.
Small Business Bonds
The Small Business Bond was a
form of security usually employed as
a debt consolidation device.
Normally, a Small Business Bond
would be entered into when the
borrower encountered difficulty with
his/her operating line of credit. The
amounts on the line of credit would be
transferred or "flipped" to a Small
Business Bond, thus retiring the
balance on the line of credit.
Usually, some form of mortgage
was taken in conjunction and as a
prerequisite of the granting of the
bond. The use of this security
instrument is gradually being phased
out by the banks.
While this listing of the types of
security documentation employed by
banks is not exhaustive, it includes
those forms of security most often
employed. These forms of security
grant to the bank substantial rights and
powers with respect to the borrower's
property and possessions in the event
of default. It goes without saying, that
you should "read before you sign".0
Agrilaw is a syndicated column produced by
the full service London law firm of Cohen
Highley Vogel & Dawson. Paul Linley, an
associate in the firm, practises in the areas
of civil and commercial litigation. Agrilaw
is intended to provide information to farm-
ers on subjects of interest and importance.
The opinions expressed are not intended as
legal advice. Before acting on any informa-
tion contained in Agrilaw, readers should
obtain legal advice with respect to their
own particular circumstances.
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LIVESTOCK
CONFINEMENT EQUIPMENT
Dairy • Pressure Washers • Hog
Model "T" Freestall
Bolt down & suspended
Wet/Dry Feeders
Hog Pen Parts
c
For More Information Contact Your Local BSM Dealer
ATWOOD
KROPF BROS.
CONST.
519-356-2249
BRUSSELS
HURON FEEDING
SYSTEMS
519-887-6289
GRANTON MILDMAY
AVONBANK
FARM EQUIPMENT
519-225-2507
KINCARDINE
LOWRY FARM
SYSTEMS
519-395-2615
MIDWAY FARM
SYSTEMS
519-367-5358
TARA
H. NICHOLSON
AND SON
519-934-2343
WELLESLEY/RANNOCH
PROGRESSIVE FARMING
519-656-2709
519-229-6700
AUGUST 1992 15