Security Agreement Form for Australia

Security Agreement Form Template for Australia

An Australian Security Agreement Form is a legally binding document that creates and evidences a security interest in personal property under the Personal Property Securities Act 2009 (PPSA). The agreement details the terms under which a grantor provides security over specific assets or property to secure obligations owed to a secured party. It includes comprehensive provisions regarding the nature of the security interest, the secured obligations, representations and warranties, covenants, enforcement rights, and PPSA-specific requirements. The document must comply with Australian law, particularly the PPSA, and is typically registered on the Personal Property Securities Register (PPSR).

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What is a Security Agreement Form?

The Security Agreement Form is a fundamental document in Australian secured financing transactions, used to create security interests that can be registered on the Personal Property Securities Register (PPSR). This document is essential when a party (the grantor) needs to provide security over personal property to secure obligations owed to another party (the secured party). The agreement must comply with the Personal Property Securities Act 2009 (PPSA) and other relevant Australian legislation. It typically includes detailed descriptions of the collateral, the secured obligations, and the rights and obligations of all parties. The Security Agreement Form is commonly used in various contexts, including business loans, equipment financing, inventory financing, and general commercial security arrangements. The document serves as the foundation for establishing enforceable security interests and determining priority rights under the PPSA regime.

What sections should be included in a Security Agreement Form?

1. Parties: Identifies and defines the Secured Party and the Grantor

2. Background: Contextual information about the security arrangement and underlying obligations

3. Definitions and Interpretation: Defines key terms used in the agreement and interpretation rules

4. Grant of Security Interest: Core provision creating the security interest over the collateral

5. Secured Obligations: Specifies the obligations being secured by the agreement

6. Representations and Warranties: Grantor's declarations about ownership, authority, and status of collateral

7. Grantor Covenants: Ongoing obligations of the Grantor regarding the collateral and compliance

8. Events of Default: Circumstances constituting default under the agreement

9. Enforcement Rights: Secured Party's rights and powers upon default

10. Power of Attorney: Appointment of Secured Party as attorney for enforcement purposes

11. PPSA Provisions: Specific provisions required under the Personal Property Securities Act

12. General Provisions: Standard clauses covering notices, amendments, governing law, etc.

13. Execution: Formal execution blocks for all parties

What sections are optional to include in a Security Agreement Form?

1. Third Party Rights: Required when third parties have interests in the collateral or additional security providers are involved

2. Insurance Requirements: Detailed insurance obligations when collateral requires specific insurance coverage

3. Priority Arrangements: Needed when there are multiple security interests requiring priority arrangements

4. Special Dealing Provisions: For specific types of collateral requiring special handling or restrictions

5. Cross-Collateralization: When security interest secures multiple obligations or facilities

6. Intellectual Property: Required when security interest includes IP rights

7. Registration and Perfection: Detailed PPSR registration requirements for specific collateral types

8. Foreign Law Provisions: When collateral includes assets in other jurisdictions

What schedules should be included in a Security Agreement Form?

1. Schedule 1 - Collateral Description: Detailed description of all assets subject to the security interest

2. Schedule 2 - Secured Obligations: Detailed list of secured obligations if complex or multiple facilities

3. Schedule 3 - Permitted Security Interests: List of pre-existing or permitted security interests over the collateral

4. Schedule 4 - Special Terms: Any special terms applying to particular types of collateral

5. Schedule 5 - Locations of Collateral: List of locations where collateral is kept or registered

6. Appendix A - PPSR Registration Details: Details of PPSR registrations and verification statements

7. Appendix B - Form of Notice: Standard forms for notices required under the agreement

8. Appendix C - Existing Security Interests Search Results: PPSR search results showing existing registrations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Commercial Lending

Asset Finance

Equipment Leasing

Manufacturing

Retail

Agricultural

Mining and Resources

Technology and Software

Construction

Transport and Logistics

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit

Treasury

Commercial

Corporate Banking

Operations

Business Development

Asset Management

Documentation

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Risk Manager

Commercial Manager

Compliance Officer

Security Trustee

Loan Officer

Corporate Lawyer

Banking Executive

Chief Financial Officer

Treasury Manager

Contract Administrator

Business Development Manager

Asset Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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