Security Agreement in Equipment used for a Business Purpose Securing a Promissory Note by pellcity27

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									Security agreement in Equipment used for a Business Purpose Securing a
Promissory Note


SECURITY AGREEMENT

Security agreement made [date of agreement], between [name of debtor], of [address of
debtor] ("debtor"), and [name of secured party], a corporation organized and existing
under the laws of [state], with its principal office located at [address of secured party]
("secured party").

SECTION
ONE. SECURITY INTEREST

Debtor, for valuable consideration, grants to secured party a security interest in the
following property and all property of similar kind acquired in the future by debtor,
together with all additions, replacements, accessions, and substitutions (the
"collateral"): [description of collateral], to secure the payment of $[dollar amount of note]
as provided in the promissory note or notes of debtor having the same date as this
security agreement (the "obligation").
Debtor warrants and covenants as provided below.


SECTION
TWO. TITLE TO COLLATERAL

Except for the security interest granted in this security agreement, debtor is, or to the
extent that this agreement states that the collateral is to be acquired, will be the owner
of the collateral free from lien, security interest or encumbrance. Debtor will defend the
collateral against all claims and demands of all persons at any time claiming it or any
interest in it.


SECTION
THREE. BUSINESS PURPOSE

The collateral is now used or will be used when acquired primarily for business
purposes and the collateral is used or will be used primarily in the business of [type of
business].
[OPTIONAL: The collateral is being acquired with the proceeds of the promissory note
or notes, which secured party may disburse directly to the seller of the collateral.]


SECTION
FOUR. LOCATION OF COLLATERAL
The collateral will be kept at [address of collateral]. Debtor will promptly notify secured
party of any change in the location of the collateral. Debtor will not remove the collateral
from [state] without the written consent of secured party.


SECTION
FIVE. DEBTOR'S RESIDENCE

If the collateral is or will be used primarily in farming operations, the debtor's residence
is: [address of residence of debtor], and debtor will immediately notify secured party in
writing of any change in debtor's place of residence.


SECTION
SIX. COLLATERAL AS FIXTURE

Debtor will not permit the collateral to be attached to real estate in such manner as to
cause it to become a fixture.


SECTION
SEVEN. PRINCIPAL OFFICE

If the collateral is of a type normally used in more than one State (such as motor
vehicles, trailers, rolling stock, airplanes, shipping containers, road building and
construction machinery, commercial harvesting machinery, and the like) and debtor has
a place of business in more than one State, the principal office of debtor is located at
[address of principal office of debtor]. Debtor will immediately notify secured party in
writing of a change in debtor's principal office.


SECTION
EIGHT. FINANCING STATEMENTS

No financing statement covering the collateral is on file in any public office. At the
request of secured party, debtor will join with secured party in executing one or more
financing statements pursuant to the Uniform Commercial Code in form satisfactory to
secured party and will pay the cost of filing wherever secured party considers filing to be
necessary. If certificates of title are issued or outstanding with respect to any of the
collateral, debtor will have the interest of secured party properly noted.


SECTION
NINE. TRANSFER OF COLLATERAL
Debtor will not sell or offer to sell or otherwise transfer the collateral or any interest in it
without the written consent of secured party.


SECTION
TEN. INSURANCE

Debtor will have and maintain insurance with respect to all collateral against risks of fire
(including extended coverage), theft, and other risks as secured party requires and, in
the case of motor vehicles, collision insurance. The insurance shall contain such terms
and be in suc
								
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