This security agreement is between , a(n) , an individual (the "Borrower") and , an individual , a(n) (the "Lender").
The Borrower is indebted to the Lender in the amount of (the "Loan"). The Loan is evidenced by a promissory note effective on the same date as this agreement (the "Note"), a copy of which is attached as Exhibit A. The Note and this agreement are collectively referred to as the "Loan Documents."
To induce the Lender to provide Loan to the Borrower as evidenced by the Note, the Borrower has agreed to enter into this security agreement for the benefit of the Lender and to grant the Lender a security interest in the Secured Property (as defined below) to secure the prompt payment, performance, and discharge in full of the Borrower's obligations under the Note.
The parties therefore agree as follows:
1. GRANT OF SECURITY INTEREST.
The Borrower grants to the Lender a security interest in the Secured Property (as defined in section 2 below) to secure payment of the Loan.
2. SECURED PROPERTY.
The secured property consists of all of the Borrower's interest as of the effective date of this agreement in the following properties and rights, wherever located, whether now owned or existing or later acquired and arising (the "Secured Property"): .
3. INDEBTEDNESS.
This agreement is made to secure payment when due of the Loan. The Loan includes:
The Borrower shall reimburse the Lender for these expenses immediately on demand, and until paid all costs shall bear interest at the highest per year rate applicable to the Loan and permitted by law.
4. REAFFIRMATION OF LOAN.
The Borrower hereby reaffirms its obligation for the full and punctual payment and performance of the Note and all other obligations of the Borrower under the Note.
5. BORROWER'S OBLIGATIONS.
6. RECORDING OF AGREEMENT.
On the effective date of this agreement, the Borrower will record this agreement and any security instrument creating a security interest on the Secured Property as required by law to protect the security interest of the Lender on the Secured Property. The Borrower shall pay all filing fees and associated expenses incident to this recordation.
7. EVENTS OF DEFAULT.
The Borrower will be in default under this agreement if any of the following occurs:
8. REMEDIES FOR EVENTS OF DEFAULT.
If an Event of Default occurs, the Lender may declare the Loan immediately due. In addition, the Lender will have all of the remedies set forth below, and these remedies are cumulative, so that the Lender may exercise one or more of these remedies until the Loan is paid in full without right of reinstatement, disgorgement, or repayment by reason of a preference, other creditor action, or by operation of law:
9. RESPONSIBILITY FOR SECURED PROPERTY.
The Borrower assumes all responsibility for the Secured Property, and the Loan will not be affected by the loss, destruction, damage, or theft of any of the Secured Property or its unavailability for any reason. The Lender
The Borrower remains obligated under each agreement included in the Secured Property. The exercise of the Lender of any rights under this agreement does not release the Borrower from its obligations under the agreements included in the Secured Property. The Lender has no liability under the agreements included in the Secured Property.
10. TERMINATION.
This agreement and all rights of the Lender under this agreement will terminate when the Lender is satisfied that the Loan and all other obligations of the Borrower under the Loan Documents are paid and performed in full without reinstatement, disgorgement, or repayment by reason of a preference, other credit or action, or operation of law.
11. INCONSISTENCIES.
If any provision of this agreement is inconsistent with any provision in the Note, the provisions of this agreement will control. the Note will control.
12. GOVERNING LAW.
13. AMENDMENTS.
No amendment to this agreement will be effective unless it is in writing and signed by both parties.
14. ASSIGNMENT AND DELEGATION.
15. COUNTERPARTS; ELECTRONIC SIGNATURES.
16. SEVERABILITY.
If any one or more of the provisions contained in this agreement is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this agreement, but this agreement will be construed as if those invalid, illegal, or unenforceable provisions had never been contained in this agreement, unless the deletion of those provisions would result in such a material change as to cause completion of the transactions contemplated by this agreement to be unreasonable.
17. NOTICES.
18. WAIVER.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.
19. ENTIRE AGREEMENT.
This agreement, together with the other Loan Documents, constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement with respect to the subject matter of this agreement. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this agreement are expressly merged into and superseded by this agreement. The provisions of this agreement may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions precedent to this agreement's effectiveness.
20. HEADINGS.
The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not affect this agreement's construction or interpretation.
21. EFFECTIVENESS.
This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.
22. NECESSARY ACTS; FURTHER ASSURANCES.
Each party shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates or to evidence or carry out the intent and purposes of this agreement.
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Each party is signing this agreement on the date stated opposite that party's signature.
Date:_____________________________ | By:____________________________________________________________ Name: Title: |
| Date:_____________________________ | By:____________________________________________________________ Name: Title: |
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EXHIBIT A
Attach a copy of promissory note