Quebec Hypothec Clause Samples
The Quebec Hypothec clause establishes a security interest in property located in Quebec, functioning similarly to a mortgage in other jurisdictions. Under this clause, a lender is granted rights over a borrower's real or movable property as collateral for a debt or obligation, and the hypothec must be registered in the Quebec land registry to be enforceable. Its core practical function is to provide the lender with legal recourse to seize or sell the secured property if the borrower defaults, thereby reducing the lender's risk and ensuring the enforceability of the security interest under Quebec civil law.
Quebec Hypothec. If any property (including the Equipment and Meters) leased or provided under this Agreement is located in the Province of Quebec, you hereby create pursuant to the laws of Quebec a hypothec on all such property (including the Equipment and Meters) in the amount of $1,000,000 as security for all Advances and other financial obligations under this Agreement and to protect our interest in the property. We may register this hypothec with the Register of Personal and Movable Real Rights (Quebec). You agree, at our request, to use commercially reasonable efforts to obtain a cession of rank (priority agreement) from the holder of each hypothec registered in priority to ours so that we will have a first-ranking hypothec on all such property. The foregoing hypothec will subsist regardless of any fluctuation or repayment of Advances or performance of all your financial obligations until they have been discharged in full.
Quebec Hypothec. You hereby create a hypothec on the universality of all present and future equipment and other property acquired from time to time under this Agreement and at any time located in the Province of Quebec, in the amount of $1,000,000, as security for all Advances and other obligations under this Agreement and to evidence and protect our interest in the Equipment and Meters. This hypothec may be registered by us at the Register of Personal and Movable Real Rights (Quebec). You also agree, at our request, to use commercially reasonable efforts to obtain a cession of rank (priority agreement) from the holder of each hypothec registered at the Register of Personal and Movable Real Rights (Quebec) in priority to ours such that we will have a first-ranking hypothec on all such equipment and other property acquired under this Agreement. The foregoing hypothec will subsist pursuant to Article 2797 of the Civil Code of Quebec notwithstanding any fluctuation or repayment of Advances until your obligations in respect of Advances have been discharged in full.
Quebec Hypothec. Within five (5) Business Days following the Closing Date, the Borrower shall do all things reasonably necessary to cause the Hypothec to be registered with the Quebec Register of Personal and Movable Real Rights and deliver an opinion thereon of its legal counsel to the Representative Lender in a form acceptable to the Representative Lender and its legal counsel, acing reasonably.