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Security Agreement

Transaction Summary
Security Agreements are typically used by lenders to secure debts. They are common as attachments in the sale of corporate assets where payment of the purchase price is by promissory note. The idea of the Security Agreement is to secure payment by granting a lien in certain assets which can be exercised in the event of default under the note. The key issues include operative language granting the interest. Identification of the assets subject to the security interest is also critical. Debtor obligations to maintain the assets and the precise terms of default are also issues to be negotiated between the parties. Notice as to the sale, disposition and location of any of the assets is critical. Finally, procedures for the secured party to exercise its lien should be defined in the Agreement. You can find answers to your questions using our extensive library of audio questions and answers
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This form minimizes lending costs and transaction risks for Lenders.

Security Agreement
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