Security Agreement

Security Agreement

A Security Agreement is a document used in financial transactions where the Grantor (typically the Borrower but can also be a Guarantor or Surety) assigns, grants and pledges to the Grantee (typically the Lender) a security interest in personal property which is referred to as the Collateral. Examples of typical collateral are shares of stock, livestock, and vehicles. A Security Agreement is required to show the grant of the Security Interest which is required to attach before the Grantee may file a valid Financing Statement with the appropriate authority.

The Security Agreement sets out the various rights the Grantee will have with respect to the collateral, which are in addition to all other rights which the Lender may have by law, such as those rights contained in Article 9 of the Uniform Commercial Code which has been adopted in some form by each state in the United States. The Security Agreement also addresses issues such as permitted sales or other transactions with the collateral in the ordinary course of the Grantor's business and notices that may be required to be given by the Grantee to the Grantor if certain actions are taken. There are many forms available for purchase from legal supply and banker supply companies, in addition to software that will produce the Security Agreement according to specific user input.

A Security Agreement does not transfer any interest in real property (land), only personal property. The document used by lenders to obtain a lien on real property is a mortgage or deed of trust.


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • security agreement — n: an agreement which creates or provides for a security interest perfect a security interest in collateral described in a security agreement compare secured transaction Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • security agreement — An agreement that creates or provides for a security interest (SA Bankruptcy.com) An agreement between a lender and a debtor providing for something to be given or pledged to a person who is lending money in order to secure or guarantee payment… …   Glossary of Bankruptcy

  • Security agreement — A security agreement is the contract that governs the relationship between the parties to a secured transaction (ie, the lender and the borrower). Under Article 9 of the Uniform Commercial Code (UCC), which governs secured transactions in the US …   Wikipedia

  • security agreement — An agreement between one or more debtors and one or more creditors in which the debtor grants the creditor an interest in the debtor s personal property as collateral for the debt. (Alternatively or in addition, the collateral may be property… …   Financial and business terms

  • Security Agreement — A document that provides a lender a security interest in a specified asset or property that is pledged as collateral. In the event that the borrower defaults, the pledged collateral can be seized and sold. A security agreement mitigates the… …   Investment dictionary

  • security agreement — An agreement which creates or provides for a security interest. UCC § 9105(I)(h) …   Ballentine's law dictionary

  • UK-USA Security Agreement — The UK USA Security Agreement is an agreement or treaty that established an alliance of Anglosphere countries for the purpose of sharing intelligence. The alliance includes Australia, Canada, New Zealand, United Kingdom and the United States.The… …   Wikipedia

  • authenticated security agreement — A electronic security agreement between the debtor and the bank that is accepted by the borrower either by downloading the agreement into a personal database or by printing a copy. As an alternative to a security agreement physically signed by… …   Financial and business terms

  • union security agreement — A contract between an employer and a union requiring workers to make certain payments (called agency fees ) to the union as a condition of getting or keeping a job. Although it is illegal to require an employee to join a union, workers may be… …   Law dictionary

  • General Security Agreement — (GSA) A contract under which all the personal property of a debtor is pledged as security to a lender. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”