Personal Property Security Agreement Template for New Zealand

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Key Requirements PROMPT example:

Personal Property Security Agreement

"I need a Personal Property Security Agreement for our company (as lender) to secure a NZD 500,000 loan against the borrower's manufacturing equipment and inventory, with the loan to be advanced by March 2025."

Document background
The Personal Property Security Agreement is a fundamental document in New Zealand's secured financing landscape, essential for businesses and individuals seeking to use personal property as collateral for financial obligations. This agreement, governed by the Personal Property Securities Act 1999 and related New Zealand legislation, enables lenders to secure their interests in various forms of personal property, from equipment and inventory to accounts receivable and intellectual property. It's commonly used in business financing, asset purchases, and working capital facilities, providing lenders with enforceable rights over the secured property while allowing borrowers to maintain use of their assets. The agreement must be properly documented and registered on the Personal Property Securities Register (PPSR) to ensure the security interest is perfected and maintain priority against other creditors.
Suggested Sections

1. Parties: Identifies and defines the secured party and the grantor/debtor, including full legal names and addresses

2. Background: Sets out the context of the security agreement, including any related financing arrangements

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation rules, including PPSA-specific terminology

4. Grant of Security Interest: Establishes the security interest being granted over the collateral, ensuring compliance with PPSA requirements

5. Secured Obligations: Specifies the obligations being secured, including any payment obligations, performance requirements, and other secured liabilities

6. Representations and Warranties: Sets out the grantor's confirmations regarding ownership, authority, and status of the collateral

7. Grantor Covenants: Details the ongoing obligations of the grantor regarding maintenance, insurance, and use of the collateral

8. Events of Default: Lists circumstances that constitute default under the agreement

9. Enforcement: Outlines the secured party's rights and remedies upon default, consistent with PPSA provisions

10. PPSA Provisions: Specific provisions required under the PPSA, including registration rights and maintenance of perfection

11. General Provisions: Standard contractual terms including notices, amendments, governing law, and dispute resolution

Optional Sections

1. Accessions and Processed Goods: Required when collateral may become an accession or be subject to manufacturing/processing

2. Third Party Provisions: Needed when third parties have interests in or rights over the collateral

3. Cross-Collateralization: Used when security interest secures obligations under multiple agreements

4. Priority Arrangements: Required when there are multiple secured parties or priority agreements

5. Special Terms for Consumer Goods: Required when the collateral includes consumer goods, incorporating CCCFA requirements

6. Intellectual Property Rights: Needed when collateral includes or relates to intellectual property

7. Insurance and Loss Provisions: Detailed insurance requirements and loss handling procedures for high-value collateral

Suggested Schedules

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

2. Schedule 2 - Secured Obligations: Detailed list of all secured obligations, including referenced agreements

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

4. Schedule 4 - Special Terms and Conditions: Any special terms or conditions specific to the collateral or security arrangement

5. Appendix A - Form of Notice: Template notices for enforcement or other formal communications

6. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage specifications

7. Appendix C - Operating Requirements: Specific requirements for operation, maintenance, or storage of collateral

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

Relevant legal definitions
Relevant Industries

Financial Services

Banking

Manufacturing

Retail

Agriculture

Construction

Technology

Transport and Logistics

Equipment Leasing

Wholesale Trade

Mining and Resources

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Credit

Compliance

Treasury

Commercial Banking

Asset Finance

Operations

Business Development

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Commercial Lawyer

Credit Manager

Risk Manager

Security Trustee

Loan Officer

Commercial Banking Manager

Asset Finance Manager

Compliance Officer

Corporate Treasurer

Business Development Manager

Contract Administrator

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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