CSBFP Presentation: Submitting a claim for loss

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Presentation : Submitting a claim for loss

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Overview

 

Lenders should always refer to the Act and Regulations, as they constitute the legal authority for the program. They contain the procedures and conditions for making and administering CSBFP loans and for submitting and substantiating claims for loan losses.

When to submit your claim

  • Once the realization process on the security has been completed
  • Within 60 months of last payment of principal or interest
  • Before the expiry of any approved extension

How to document your claim

When preparing your documents, ensure that documents are not password protected and preferably not compressed. Document pages should be in this order:

  1. Claim for Loss Form
  2. Registration Form
  3. Loan Authorization
  4. Loan Agreement
  5. Loan Statements
  6. Project
  7. Security
  8. Guarantee
  9. Realization
  10. Legal Costs
  11. Other Costs
  12. Bankruptcy/Consumer proposal
  13. Other

Claim for Loss Form

Registration Form

  • Registration form signed by the borrower and lender
  • Loan registration acknowledgement and any subsequent amendment

Loan Authorization

Loan Agreement

  • Including any amendments (promissory notes)

Loan Statements

  • Including all transactions from the first disbursement until the submission of the claim
  • Including any realizations received up to the submission of the claim

Project

  • Summary of eligible costs form
  • Invoices and purchase agreements*
  • Proofs of payment for each invoice submitted*
  • Appraisal (when required)
  • Third party attestation (when required)

*Default on or after July 4, 2022: 75% of OLB
For Line of Credit : Only a copy of the signed attestation is required

Security

  • Security document signed by the borrower
  • Security registration document confirming the 1st ranking security charge

Guarantee

  • Signed Personal and/or Corporate Guarantee(s)

Realization

  • Demand letter
  • Documentation to substantiate the realization/non-realization of the assets subject to the lender's security
  • Documentation to substantiate the realization/non-realization of the guarantees held by the lender

Legal Costs

  • Invoices and proofs of payment

Other Costs

  • Invoices and proofs of payment associated with other realization costs

Bankruptcy & Consumer Proposal

  • Evidence of bankruptcy/receivership/consumer proposal
  • Original and any revised proof of claim, together with all annexes
  • Dividend cheque(s), dividend sheet(s) and final receipts and disbursements (R&D)

Other

  • Lease agreements, franchise agreements, etc.

How to submit your claim

Resources for lenders

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