Document background
The Addendum Loan Agreement is a crucial document in Canadian lending practice used when parties need to modify an existing loan agreement without completely restructuring the arrangement. It becomes necessary when circumstances require adjustments to loan terms, such as payment restructuring, interest rate modifications, or changes to security arrangements. This document type is governed by Canadian federal legislation (including the Interest Act and Bank Act) and provincial contract laws, requiring careful attention to both federal and provincial regulatory requirements. The addendum must clearly reference the original agreement and precisely detail all modifications while ensuring all changes comply with Canadian lending regulations. Typically used in both commercial and personal lending contexts, the Addendum Loan Agreement helps maintain legal continuity while allowing for necessary contractual flexibility.
