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Collateral Agreement Template

Used 6,242 times

Collateral Agreement Template

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This Agreement (“Agreement”) is made by [Sender.FirstName][Sender.LastName] of [Company.Name] (“Secured Party”) and [Client.FirstName][Client.LastName] of [Client.Company] (“Debtor”) on the effective date of [date].


 [Company.Name] has issued an [insurance policy/loan/etc.], attached hereto, to Debtor, and the parties agree that this policy results in financial exposure to the Secured Party based on: 

  • [list out the reasons why]
  • [Talk about the total amount of money that the loan, insurance policy, etc. is worth and who or what is the issuer]
  • [List out if there is an interest rate]


To secure these financial exposures, the Debtor hereby agrees to provide the Secured Party with full right and title of ownership to the following property as collateral (the “Collateral”) to secure the debt listed in the “debt” section of this agreement:

  • [Property name, address]

The collateral listed below is also offered by the Debtor in order to secure the following from the Secured Party:

  • [Describe the collateral.]

Representations and Warranties

The Debtor represents and warrants that:

  1. No other Creditor has the right to ownership of the listed collateral that may interfere with the Secured Party’s ability to take and profit from the sale of said property in the event that the above-listed debts are not repaid.
  2. They are the rightful legal owner of the listed collateral.
  3. They agree to notify the Secured Party of any changes to their contact information or physical address.
  4. They agree not to sell or transfer ownership of the property listed in this collateral agreement until their debt to the Secured Party has been fully resolved.
  5. Should they default on the above-listed debt, the Secured Party shall have the right to seize the listed collateral and resell it to recoup their lost investments.
  6. They will be deemed to be in default if they:
  7. Fails, within [number] days of [time period], to reimburse the Secured Party as required by the [insurance policy];
  8. Fails to provide additional required collateral as required;
  9. Becomes insolvent, bankrupt, or unable or unwilling to fulfill their obligations to the Secured Party.

The Secured Party represents and warrants that:

  1. All warranties and representations in the [original agreement, i.e. loan or insurance policy document] continue in full force and effect;
  2. The only recipient of the [loan/insurance policy/etc.] is the Debtor identified in this Agreement;
  3. The Secured Party will perform all of its duties and obligations and comply with all terms and conditions set out under [original agreement, i.e. loan or insurance policy document] and this collateral Agreement.


The Debtor gives and grants the Secured Party a security interest in all collateral provided or delivered to the Secured Party and/or [pronoun] Company by or for the account of the Debtor at any time pursuant to this Agreement.

Governing Law

This purchase of business Agreement hereunder will be governed by the state and federal laws of [State, i.e. New York], [Country].

The Parties understand that this Agreement is governed by Article III of the Uniform Commercial Code (the “UCC”).


What is survivability? This template’s Survivability clause specifies which provisions will remain in effect after termination, expiration, or other events such as investigation of the Collateral. This clause allows both parties to mutually agree to maintain the legality and enforceability of the Agreement.

If any provisions are deemed invalid or unenforceable, the rest of the Agreement will continue in full force and effect.

The representations and warranties contained within this Agreement will continue after the delivery and payment of the Collateral and shall remain in full force and effect, regardless of any investigation made on behalf of any of the Collateral or any person controlling any of them.


IN WITNESS WHEREOF, the parties have hereunto set their hands this [number] day of [month], [year].









Collateral Agreement Template

Used 6,242 times

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