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Security Interest Agreement for the United States

Security Interest Agreement Template for United States

A Security Interest Agreement is a legal document governed by Article 9 of the Uniform Commercial Code in the United States, which creates an enforceable security interest in specified collateral to secure the performance of an obligation. The agreement identifies the parties, describes the collateral in detail, sets forth the rights and obligations of both parties, and specifies remedies in case of default. It must comply with both federal and state-specific UCC requirements for creation and perfection of the security interest.

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Security Interest Agreement

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What is a Security Interest Agreement?

Security Interest Agreements are essential documents in secured lending transactions under U.S. law, particularly when a creditor requires collateral to secure a loan or other obligation. These agreements, governed by Article 9 of the UCC, are used when a lender needs to establish a legal claim over specific assets of the borrower as security. The Security Interest Agreement must include precise identification of the collateral, clear terms for maintenance and disposition of the collateral, and specific provisions for default and enforcement that comply with both federal and state requirements. It serves as the foundation for filing UCC financing statements and establishing priority among creditors.

What sections should be included in a Security Interest Agreement?

1. Parties: Identification of secured party and debtor

2. Background: Context of the security interest and underlying obligation

3. Definitions: Key terms used throughout the agreement

4. Grant of Security Interest: Express creation of the security interest

5. Description of Collateral: Detailed description of assets subject to security interest

6. Representations and Warranties: Debtor's statements about ownership and condition of collateral

7. Covenants: Ongoing obligations regarding maintenance and protection of collateral

8. Events of Default: Circumstances triggering enforcement rights

9. Remedies: Rights and actions available upon default

What sections are optional to include in a Security Interest Agreement?

1. Insurance Requirements: Required when collateral needs specific insurance coverage for valuable physical assets

2. Additional Secured Parties: Provisions for multiple secured parties in syndicated or multiple-lender situations

3. Intercreditor Provisions: Rules governing multiple security interests when multiple secured creditors exist

What schedules should be included in a Security Interest Agreement?

1. Schedule of Collateral: Detailed listing of all assets subject to security interest

2. UCC Filing Information: Details required for UCC-1 financing statements

3. Prior Liens Schedule: List of existing liens on collateral

4. Permitted Liens Schedule: List of liens allowed under the agreement

5. Collateral Locations: List of locations where collateral is kept

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Security Agreement

Cost

Free to use
Clauses




























Industries

Uniform Commercial Code (UCC) - Article 9: Primary legislation governing secured transactions in the US. Provides fundamental rules for creation, perfection, and enforcement of security interests, and determines priority among competing creditors.

Securities Act of 1933: Federal legislation that must be considered if the collateral includes securities. Regulates the offering and sale of securities.

Securities Exchange Act of 1934: Federal legislation governing secondary trading of securities and establishing the SEC. Relevant when security interests involve publicly traded securities.

Federal Tax Lien Act: Federal legislation that determines the priority of federal tax liens in relation to security interests.

Bankruptcy Code: Federal law that affects the enforceability of security interests in bankruptcy proceedings and determines creditor rights.

State UCC Variations: State-specific modifications to the UCC, including different versions, filing requirements, and perfection rules that vary by state.

State Property Laws: State-specific laws governing real and personal property rights, which may affect the security interest depending on the type of collateral.

Federal Reserve Regulations: Regulatory requirements that apply when financial institutions are involved in the security interest agreement.

FDIC Requirements: Regulatory requirements from the Federal Deposit Insurance Corporation that may apply when banks are involved in the security interest.

Industry-Specific Regulations: Additional regulations that may apply depending on the industry sector, including specific licensing requirements and regulatory compliance.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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