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Security Agreement for Borrowing Money
Security Agreement for Borrowing Money
Lenders often feel more confident about a loan if they are given a security interest in the assets of a business. Use this form when some or all of a business's tangible personal property is going to be used for security.
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Lenders often feel more confident about a loan if they are given a security interest in the assets of a business. Then, if the borrower does not repay the loan as promised, the lender can take the property the borrower pledged, sell it and use the proceeds to repay (or partially repay) the borrowed amount.
Use this form when some or all of a businesses’ tangible personal property is going to be used for security.
Important to Know:
See a lawyer if real estate or intellectual property is the security for the loan.
See a lawyer if intangible property -- such as accounts receivable, the right to collect rent under a lease, or a trademark -- is the security for the loan.
