Security Agreement

• Category: Loans and Lending - Security Agreements
• State: Multi-State
• Control #: US-0826BG
• Format: Word; Rich Text

Description

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. By creating a security interest, the secured party is also assured that if the debtor should go bankrupt he or she may be able to recover the value of the loan by taking possession of the specified collateral instead of receiving only a portion of the borrower's property after it is divided among all creditors. The Uniform Commercial Code is a model statute covering transactions in such matters as the sale of goods, credit, bank transactions, conduct of business, warranties, negotiable instruments, loans secured by personal property and other commercial matters. Article 9 of the Uniform Commercial Code covers most types of security agreements for personal property that are both consensual and commercial. A Security Agreement in Accounts Receivable and General Intangibles is a document that outlines the terms and conditions of a loan agreement between the lender and the borrower. This agreement is used to protect the lender’s interests in the event that the borrower fails to make payments on the loan. It also outlines the rights of the lender in the event of default. The Security Agreement in Accounts Receivable and General Intangibles typically includes provisions such as: a description of the collateral that secures the loan, the amount of the loan, the interest rate, the repayment schedule, the default provisions, and any other terms and conditions that the parties agree to. The Security Agreement may also include the borrower's representations and warranties, the lender's rights in the event of default, and the procedures for disposing of the collateral in the event of default. There are two types of Security Agreement in Accounts Receivable and General Intangibles: a General Security Agreement and a Special Security Agreement. A General Security Agreement applies to all the borrower's accounts receivable, while a Special Security Agreement applies to a specific account or type of accounts receivable. The lender may also require additional collateral, such as inventory, equipment, or real estate, in order to secure the loan.

A Security Agreement in Accounts Receivable and General Intangibles is a document that outlines the terms and conditions of a loan agreement between the lender and the borrower. This agreement is used to protect the lender’s interests in the event that the borrower fails to make payments on the loan. It also outlines the rights of the lender in the event of default. The Security Agreement in Accounts Receivable and General Intangibles typically includes provisions such as: a description of the collateral that secures the loan, the amount of the loan, the interest rate, the repayment schedule, the default provisions, and any other terms and conditions that the parties agree to. The Security Agreement may also include the borrower's representations and warranties, the lender's rights in the event of default, and the procedures for disposing of the collateral in the event of default. There are two types of Security Agreement in Accounts Receivable and General Intangibles: a General Security Agreement and a Special Security Agreement. A General Security Agreement applies to all the borrower's accounts receivable, while a Special Security Agreement applies to a specific account or type of accounts receivable. The lender may also require additional collateral, such as inventory, equipment, or real estate, in order to secure the loan.