A security agreement is a contract between a lender and borrower that states that the lender can repossess the property a person has offered as collateral if the loan is not paid as agreed.
A security interest refers to the property rights of a lender or creditor who's right to collect a debt is secured by property. A secured transaction is created by means of a security agreement in which a lender (the secured party) may take specified collateral owned by the borrower if he or she should default on the loan. Collateral is the property that secures the debt and may be forfeited to the creditor if the debtor fails to pay the debt. Property of numerous types may serve as collateral, such as houses, cars, and jewelry. Article 9 of the Uniform Commercial Code covers most types of security agreements for personal property that are both consensual and commercial. All states have adopted and adapted the entire UCC, with the exception of Louisiana, which only adopted parts of it.
Arkansas Security Agreement with regard to Installment Sale of Mobile Home is a legal document that serves as a means of securing the repayment of a loan or financing arrangement for the purchase of a mobile home in Arkansas. It establishes a contractual relationship between the lender and the borrower, outlining the terms and conditions governing the loan and providing protection to both parties. Under this agreement, the borrower (purchaser of a mobile home) pledges the mobile home as collateral to secure the loan, giving the lender a security interest in the property until the debt is fully repaid. This security interest grants the lender the right to take possession of the mobile home in the event of default and sell it to recover the outstanding balance owed. Key provisions commonly included in an Arkansas Security Agreement for the installment sale of a mobile home include: 1. Identification of parties: The agreement begins by identifying the lender (secured party) and the borrower (debtor). It also includes their contact information and relevant identification details. 2. Description of the mobile home: A thorough description of the mobile home being purchased is included in the agreement. This includes the make, model, year, vehicle identification number (VIN), and any other pertinent details. 3. Security interest: The agreement clearly states that the borrower grants the lender a security interest in the mobile home as collateral for the loan. It outlines the lender's rights and remedies in the event of default. 4. Loan terms: The agreement specifies the amount of the loan, the interest rate, the repayment schedule, and the duration of the loan. It may also include details regarding late payment penalties, prepayment options, and default remedies. 5. Insurance requirements: To protect the lender's interest, the agreement often requires the borrower to maintain appropriate insurance coverage (such as comprehensive or hazard insurance) on the mobile home throughout the loan term. 6. Governing law and jurisdiction: In an Arkansas Security Agreement, the governing law is typically the laws of the state of Arkansas. The agreement also determines the jurisdiction or court where any disputes arising from the agreement will be resolved. Different types of Arkansas Security Agreements may exist, depending on the specific circumstances of the mobile home installment sale. For example, there may be agreements specifically for new mobile homes, used mobile homes, or for different financing terms (fixed-rate, adjustable-rate, etc.). However, the fundamental purpose of all these agreements remains the same — to safeguard the lender's interest and ensure repayment of the loan.
