10 Reasons Not to Use Your
Personal Credit Line to Finance Your Car

1. Ready Realisable Security: A line of Credit at prime requires an asset for security that is of equal or greater value then the amount of your credit line. Most people use their home, so if you default the bank will seize your house!
2. Applying Your Payment: If you miss a payment, the bank can allocate your payment to any loan, under any agreement.
3. Late Payments: If you payment is not made by the due date, the bank may debit any of your accounts with them to make the payment.
4. Default: If you default on your credit line the bank can:
   • Sue you for what you owe them
   • Take possession of the property pledged as security
   • Appoint a receiver to administer your property
5. Default of Any Loan: Default of any loan, credit account or security agreement is considered default of all agreements. In that case all amounts owing to the bank under all loans and credit agreements will be made payable to immediately.
6. Total Balance Due: A line of credit is a demand loan, the bank can require the total balance of your credit line be paid back if:
   • You fail to pay an installment on time
   • You fail to pay when asked, any amount the bank is entitled to charge you for making repairs, maintaining insurance or clearing claims against the property
   • You break any promise, under any agreement, you die, become insolvent or bankrupt
   • Your property is lost, stolen, destroyed or substantially damaged or seized in any legal proceedings
   • Your property reduces in value to a level the bank considers unacceptable
   • Anything else happens that the bank believes endangers your ability to pay or the property in any way
7. Any Events: If any of the events described under the “Total Balance Due” section occur the bank will have no further obligation to honour any cheques you have written.
8. Changing Your Limit: The bank can reduce your credit limit at any time, without telling you in advance, with or without terminating your agreement.
9. Terminating the Agreement: If the agreement is terminated for any reason, you are not relieved of any obligations under the agreement exiting at the time of the termination until they have been satisfied.
10. Security Agreement Ends: For secured loans or credit accounts, when the banks interest in the property end, you will pay a fee for the preparation and execution of a discharge plus a provincial registration fee.