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Security Agreement For Promissory Note
"I need a Security Agreement For Promissory Note under Nigerian law to secure a promissory note worth 5 million Naira due March 15, 2025, where ABC Trading Limited is granting security to XYZ Bank Limited."
1. Parties: Identifies and defines the secured party (creditor) and the grantor (debtor) providing the security interest
2. Background: Sets out the context of the agreement, including reference to the underlying debt and promissory note
3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation rules
4. Grant of Security Interest: Creates and defines the security interest over the promissory note
5. Description of Secured Obligations: Details the obligations being secured, including principal amount, interest, and other secured amounts
6. Description of Collateral: Specific details of the promissory note(s) being used as collateral
7. Representations and Warranties: Grantor's confirmations regarding ownership, authority, and status of the promissory note
8. Covenants: Ongoing obligations of the grantor regarding the promissory note and maintenance of the security
9. Events of Default: Circumstances that trigger enforcement rights
10. Enforcement Rights: Rights and remedies of the secured party upon default
11. Notices: Process and requirements for giving notices under the agreement
12. Governing Law and Jurisdiction: Specifies Nigerian law as governing law and jurisdiction for disputes
13. Execution: Signature blocks and execution formalities
1. Corporate Authority: Required when either party is a corporate entity, detailing corporate approvals and authority
2. Additional Secured Parties: Used when multiple creditors are involved, defining their relationships and priorities
3. Currency Provisions: Required when the promissory note is denominated in a foreign currency
4. Power of Attorney: Optional provision granting the secured party power to act on behalf of the grantor in certain circumstances
5. Assignment and Transfer: Detailed provisions for transferring rights under the agreement, if transferability is intended
6. Security Agent: Required when a security agent is appointed to hold the security on behalf of multiple secured parties
7. Further Assurance: Additional provisions requiring the grantor to take further actions to perfect or protect the security
8. Costs and Expenses: Detailed provisions regarding who bears various costs related to the security arrangement
1. Schedule 1 - Promissory Note Details: Full details of the promissory note(s) including date, amount, maker, maturity date
2. Schedule 2 - Form of Notice: Prescribed form of notices to be given under the agreement
3. Schedule 3 - Perfection Requirements: List of filings and actions required to perfect the security interest
4. Schedule 4 - Additional Documents: List of related documents such as corporate authorizations or underlying agreements
5. Appendix A - Form of Promissory Note: Standard form of promissory note if new notes are to be issued
6. Appendix B - Transfer Form: Form for transferring rights in the promissory note
Authors
Banking and Financial Services
Commercial Lending
Corporate Finance
Real Estate
Manufacturing
Trading and Commerce
Agriculture
Oil and Gas
Construction
Infrastructure
Telecommunications
Healthcare
Transportation and Logistics
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Secretariat
Credit
Commercial
Business Development
Operations
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Secretary
Treasury Manager
Credit Risk Manager
Compliance Officer
Commercial Director
Business Development Manager
Contract Manager
Financial Controller
Legal Director
Security Trustee
Loan Officer
Transaction Manager
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