Security Agreement Contract for the United States

Security Agreement Contract Template for United States

A Security Agreement Contract is a legal document governed by U.S. law, primarily Article 9 of the Uniform Commercial Code, that creates a security interest in specified collateral to secure the performance of an obligation. This agreement details the rights and responsibilities of both the secured party and the debtor, including the description of collateral, maintenance requirements, and enforcement rights upon default.

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What is a Security Agreement Contract?

A Security Agreement Contract is essential in secured lending transactions under U.S. law, where a creditor requires collateral to secure a loan or other obligation. This document, governed by Article 9 of the UCC and related state laws, establishes the creditor's security interest in specific assets, outlines the parties' rights and obligations, and provides remedies in case of default. The agreement is crucial for protecting the lender's interests while allowing borrowers to leverage their assets for financing.

What sections should be included in a Security Agreement Contract?

1. Parties: Identification of secured party and debtor, including full legal names and addresses

2. Background: Context of the security agreement and the underlying obligation being secured

3. Definitions: Key terms used throughout the agreement including definition of collateral, secured obligations, and events of default

4. Grant of Security Interest: Formal creation and grant of the security interest in the collateral

5. Description of Collateral: Specific and detailed description of all assets serving as security

6. Representations and Warranties: Statements about ownership, condition, and status of collateral

7. Covenants: Ongoing obligations regarding maintenance, protection, and use of collateral

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

9. Remedies: Rights and remedies available to the secured party upon default

10. Miscellaneous: Standard boilerplate provisions including governing law, notices, and amendments

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

1. Insurance Requirements: Specific insurance requirements for valuable physical collateral

2. Third Party Consents: Provisions regarding required third-party approvals and consents

3. Special Priority Provisions: Provisions addressing priority among multiple secured parties

4. Further Assurances: Additional actions required to perfect or maintain the security interest

5. Intercreditor Provisions: Terms governing relationships between multiple creditors

What schedules should be included in a Security Agreement Contract?

1. Schedule A - Collateral Description: Detailed listing and description of all collateral items

2. Schedule B - UCC Filing Information: Information required for UCC-1 financing statements

3. Schedule C - Permitted Liens: List of pre-existing liens or encumbrances on collateral

4. Schedule D - Insurance Certificates: Documentation of required insurance coverage

5. Schedule E - Filing Offices: List of jurisdictions where UCC filings will be made

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

United States

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use
Clauses
Industries

Uniform Commercial Code (UCC) - Article 9: Primary legislation governing secured transactions, establishing rules for creation, perfection, and enforcement of security interests, and determining priority among competing creditors

Securities Act of 1933: Federal law regulating the offering and sale of securities, requiring registration and disclosure requirements for securities transactions

Securities Exchange Act of 1934: Federal law governing secondary market trading of securities and establishing the SEC's regulatory authority

Federal Tax Lien Act: Legislation governing federal tax liens and their priority in relation to other security interests

Bankruptcy Code: Federal law determining the enforceability and treatment of security interests in bankruptcy proceedings

State UCC Variations: State-specific modifications and implementations of the Uniform Commercial Code that may affect security agreements

State Recording Requirements: State-specific rules governing the recording and filing of security interests and related documents

Property Laws: Legal framework distinguishing between real and personal property, including rules regarding fixtures and their treatment in security agreements

Banking Regulations: Federal and state regulations affecting security agreements involving financial institutions, including Federal Reserve and FDIC requirements

Consumer Protection Laws: Legislation protecting consumer rights in secured transactions, including the Truth in Lending Act for consumer goods transactions

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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