Security Agreement with Farm Products as Collateral
Security Agreement made on the ___ day of __________, 20___, between (Name of
Debtor) of (street address, city, county, state, zip code), referred to herein as Debtor,
and (Name of Secured Party), a corporation organized and existing under the laws of
the state of (name of state), with its principal office located at (street address, city,
county, state, zip code), referred to herein as Secured Party.
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
I. Creation of Security Interest and Obligations Secured. Debtor grants to
Secured Party a security interest in the collateral described below, and each separate
kind and item of the collateral, to secure payment of the following obligations:
A. The Promissory Note (the Note) of even date with this Agreement,
executed by Debtor to Secured Party, or order, together with interest as provided
in such Note.
B. All rentals now or later due from Debtor to Secured Party for the real
property referred to below or any other real property.
C. All other liabilities of Debtor to Secured Party, direct or indirect, absolute
or contingent, whether now existing or later created or arising, and whether oral
or in writing.
D. All costs and expenses incurred by Secured Party, including reasonable
attorney's fees, in the enforcement of this Agreement or any provision of it or in
the collection of any obligation secured by this Agreement.
II. Collateral. The collateral (hereafter called Collateral) in which a security interest
is given by Debtor to Secured Party is the following personal property:
A. All crops of every kind previously planted and now growing, or planted in
the future, on the lands commonly known and referred to as (name of farm),
consisting of (number) acres, more or less, located at (address of farm).
B. All farm implements and equipment of Debtor including, but not limited to,
tractors, cultivators, discs, planters, harvesters, combines, pickers and other
machines employed in the farming of the real property mentioned above,
together with all attachments and replacements of the same, including the equity
of Debtor in any such item that is subject to a purchase money or other prior
C. Feed, seed, fertilizer and other supplies now or later owned by Debtor and
used or intended for use in the farming of the real property mentioned above.
D. Livestock described and inventoried on Schedule A attached to this
Agreement, and the increase of such livestock.
E. All products and proceeds of any of the foregoing, including cash and
III. Ownership and Preservation of Collateral
A. Debtor warrants that he is the owner of all Collateral mentioned above and
currently in his possession or control, free from any adverse lien, security interest
or encumbrance, except for the security interest now granted, and purchase-
money and other security interests of other creditors listed in Schedule B,
attached to this Agreement. Debtor shall defend Collateral against all claims and
demands of all persons at any time claiming the Collateral or any interest in the
B. Debtor shall not remove any of the Collateral from the real property
mentioned above without the prior written consent of Secured Party, except for
the disposition of Collateral provided for below.
C. Debtor shall keep Collateral and the proceeds of the same free from
adverse liens, in good condition and in an unmanufactured state. Debtor shall not
waste or destroy Collateral or any part of the same, and shall plant, cultivate and
harvest the crops mentioned above, in a good and farmer-like manner in
accordance with accepted methods of farming in the county in which the farm is
IV. Financing Statements. Debtor represents that no financing statement pertaining
to any portion of the Collateral is on file in any public office. Debtor will join with Secured
Party, at the request of Secured Party, in executing one or more financing statements
pursuant to (citation state’s code sections dealing with Article 9 of the Uniform
Commercial Code) in form satisfactory to Secured Party, and will pay the cost of filing
such statements in all public offices where filing is deemed by Secured Party to be
necessary; provided, that Debtor shall pay the costs of filing at the appropriate public
offices. If and to the extent that continuation statements are necessary or advisable in
the judgment of Secured Party, such statements shall be prepared and filed with the full
cooperation of Debtor, at such public offices as Secured Party may deem advisable,
and Debtor shall pay the filing costs for such continuation statements to the same extent
as in the case of financing statements.
V. Insurance and Taxes
A. Debtor shall maintain insurance at all times on all tangible Collateral
against risks of fire and risks included within extended-coverage provisions of
standard policies, theft and such other risks as Secured Party may require,
written by such company or companies as may be satisfactory to Secured Party,
and payable in the event of loss to Secured Party and Debtor as their interests
may appear. Such insurance shall be written for the full insurable values of the
tangible collateral covered by the insurance. All policies of insurance shall
provide for (number) days' written minimum cancellation notice to Secured Party.
All policies of insurance may, at the option of Secured Party, be held by Secured
Party. Secured Party shall have the right to act as attorney for Debtor in
connection with all claims of loss, and the negotiation and settlement of all such
claims. Secured Party may receive, endorse and deposit any insurance drafts for
losses in the name of Debtor and as Debtor's attorney-in-fact.
B. Debtor shall pay promptly when due all taxes and assessments levied
against Collateral or the proceeds of the same, or against this Agreement or any
note secured by this Agreement.
VI. Payment of Expenses by Secured Party and Right to Reimbursement. If any
tax, insurance premium, lien or other expense or obligation relating to the Collateral is
not paid by Debtor promptly when due, Secured Party at Secured Party’s option may
pay any such indebtedness. Debtor shall promptly reimburse Secured Party on demand
for any such indebtedness paid by Secured Party. Such right and option of Secured
Party is cumulative, and in addition to any other right or remedy of Secured Party under
VII. Control, Use and Sale of Collateral by Debtor. So long as Debtor shall not be
in default under this Agreement, Debtor may harvest, process, store and use the
Collateral for all appropriate purposes not inconsi