If you`re a business owner in Alberta, you may need to register a General Security Agreement (GSA) to secure your assets and protect your business. A GSA gives lenders the right to seize and sell your assets if you default on a loan. Here`s how to register a GSA in Alberta:
1. Prepare the GSA
Before you can register a GSA, you need to prepare the agreement. A GSA should identify the borrower and the lender, describe the collateral (i.e. the assets being pledged as security), and outline the terms of the agreement. You may want to consult a lawyer to help you draft the GSA.
2. Conduct a search
Before you can register a GSA, you need to make sure there are no existing security agreements on the collateral. Conduct a search at the Personal Property Registry (PPR) to see if there are any existing registrations. If there are, you`ll need to get a discharge or subordination from the existing secured party before you can register your own GSA.
3. Register the GSA
Once you`ve prepared the GSA and conducted a search, you can register the agreement at the PPR. You`ll need to provide the following information:
– The borrower`s name and address
– The lender`s name and address
– A description of the collateral (e.g. serial numbers, make and model, etc.)
– The duration of the security interest
– The amount of the debt secured by the collateral
You`ll also need to pay a registration fee, which varies depending on the value of the collateral.
4. Keep the GSA up-to-date
Once you`ve registered the GSA, it`s important to keep it up-to-date. If there are any changes to the collateral or the terms of the agreement, you`ll need to amend the registration. If you pay off the loan, you`ll need to discharge the GSA.
In conclusion, registering a General Security Agreement in Alberta is an important step for securing your assets and protecting your business. By following these steps and keeping the agreement up-to-date, you can ensure that your assets are protected and that your business is on a solid financial footing.