Every commercial loan transaction should require the borrower to sign a Security Agreement - like this customizable digital template.
- This form is only for use in the United States.
- The borrower (debtor) grants the lender (secured party) a security interest in certain property of the borrower, as collateral to secure repayment of the borrower's indebtedness under a promissory note.
- The parties intend the agreement to be a security agreement under the Uniform Commercial Code.
- The secured party has the right to take whatever action it considers necessary to protect its security interest.
- All amounts secured by the agreement become immediately due and payable if the borrower files for bankruptcy or becomes insolvent.
- The debtor waives any statute of limitations with respect to enforcement of the secured party's lien.
No lender should be without a standard form Security Agreement. If you don't have one yet, download your copy now.
Last Updated: 14-April-2016