Demand for Payment of a Collateral Backed Loan
Demand payment of loans that are backed by collateral such as a vehicle, boat, etc. The demand warns the borrower may repossess if payment is not made.
Whose it for?
- Financial Lenders
- Leasing Companies
What is Collateral?
Collateral is something of value that is put up as security for repayment of a financial loan. The collateral acts as protection for the lender in the case that the terms of the loan agreement are not met by the borrower. Â
Why is a Demand for Payment used?
Depending on the province where the borrower is located and the terms of the agreement demand notice may or may not be required by law. Even when not required, lenders use this notice as a last chance for the borrower before serious action is taken.
What if the borrower still doesn't pay?
When borrowers just won’t cooperate lenders may have to send the matter to a bailiff for repossession of the secured collateral. Lenders should confirm the status of their lien and check for any others that may apply to the secured collateral to avoid surprises if/when repossession is necessary.
What does it look like?
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