Security agreements are typically used when a loan is being arranged between a borrower and a lender. This contract creates a “security interest” between the borrower and a lender and it entitles the lender to take possession of collateral put up by the borrower if the borrower does not meet their loan payment obligations. This security agreement template can be used for any loan agreement that requires a security interest.
This Agreement is made on this [Document.CreatedDate], between [Borrower.FirstName][Borrower.LastName] residing at [Borrower.StreetAddress], [Borrower.City], [Borrower.State][Borrower.PostalCode], hereinafter referred to as “Debtor” and [Lender.FirstName][Lender.LastName] residing at [Lender.StreetAddress], [Lender.City], [Lender.State][Lender.PostalCode], hereinafter referred to as “Secured Party.”
The Debtor has agreed to borrow from the Lender an amount of $(amount) (the "Loan"). As a condition of the Lender's agreement to loan said amount to the Debtor, the Debtor is obliged to enter into this Security Agreement and to grant to the Lender a security interest in the Collateral (as hereinafter defined).
In connection with this loan arrangement, the Parties to this Agreement agree to the following terms and conditions:
1. Creation of Security Interest
The Secured Party shall be granted a security interest for the payment and performance of the Debtor’s promissory note in the principal amount of $(amount) and the payment and performance of all other obligations and liabilities of the Debtor to the Secured Party of every kind and description, absolute or contingent, direct or indirect, due or to become due now existing or hereafter arising.