Guidelines

Section C: Realization and Claim Submission

7 Documenting Claim for Loss Submissions

Copies of the following documents must be submitted with claims for CSBF loan losses:

•  A properly completed Claim for Loss form (See Section D), certified by an authorized representative of the lender;
•  The borrower's loan application form and/or a copy of the lender's documentation of approval for the loan;
•  The Loan Registration form, the Loan Registration and Fee Receipt Acknowledgement form, and where applicable, the Loan Registration Modification Acknowledgement form;
•  The cost and proof of payment of the eligible assets. To expedite the payment of the claim, a summary of the invoices and proof of payment should be provided.
  Section A, Item 5; Bulletins – August 1999, September 1999, May 2000
•  Appraisals and an update to the appraisal, if applicable, of the purchased assets, in the case of non-arm's length transactions, and of the assets in a going concern purchase or where assets are purchased from the lender or its representative;
•  A loan account statement (computer print out, etc.) showing the dates the loan proceeds were advanced, all payments of principal and interest, and all other entries to the loan account;
•  The loan document (i.e., promissory note or equivalent) and any renewal documents;
•  In the case of fixed rate loans, a document substantiating the lender's posted single family residential mortgage rate;
•  Documents evidencing any revision of repayment terms;
•  Documents relating to the primary, additional and alternate security, and guarantees or suretyships;
•  The Notice of Default and Demand for Payment documents sent to the borrower and other obligants;
•  Documents evidencing the landlord's seizure of loan security, if available, or details of the seizure;
•  Documents evidencing the sale of security, including any appraisals obtained to substantiate the reasonableness of the sale price (if selling to a related party, an appraisal should definitely be provided); Bulletin – December 1999
•  Where costs and/or realization proceeds are to be shared between the CSBF loan and a lender's other loans, a statement indicating the other loans the lender has advanced to the borrower and guarantors, along with principal balances outstanding on those loans, both after default and after the realization of security held for those loans;
•  An explanation if the amount realized from security is less than the appraised value;
  Bulletin – December 1999
•  A description and appraised value of any unrealized asset held as security, where liquidation of assets may take considerable time (e.g. a property sale that is expected to be protracted);
•  Justification for abandoning security, including supporting appraisals, or evidence of penury or the impracticality of collecting in the case of guarantors or sureties, sole proprietors or partners;
•  An estimate of the value of any missing security and details of any efforts the lender has made to locate it;
•  A report of outstanding guarantees or suretyships and/or personal liability of the sole proprietor or partner(s);
•  Documents supporting any settlement with the borrower or third parties, including guarantors or sureties;
•  Invoices/receipts supporting costs claimed;
•  The detailed solicitor's billing showing total time spent, work performed and rate per hour charged;
•  The Statement of Claim, Judgement and Writ of Execution;
•  Bankruptcy
  • evidence of bankruptcy/receivership (e.g. notice of first meeting of creditors, the bankrupt's statement of assets and liabilities) for both the borrower and any guarantor(s);
  • the original and any revised proof of claim together with all annexes;
  • the Trustee's/Receiver's final report must also be submitted. If the Trustee's final report is not available, the lender/trustee's comments as to the probability of receiving dividends from the estate should be provided. In all cases, the final report is to be sent to the CSBFP Directorate when available.
•  Details of any suspected wrongdoing by borrowers (e.g. fraudulent activities) and details of follow-up action by the lender. Bulletin – December 1999