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Security Agreement for Borrowing Money (DOC)

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					                Security Agreement for Borrowing Money


1. Names. This Security Agreement is between _________________, Borrower, and
_________________, Lender.

2. Grant of Security Interest. Borrower grants to Lender a continuing security interest
in the following property (the Secured Property), which consists of:

   [ ] The tangible personal property owned by Borrower's business known as
   ______________, as listed in attached Attachment 1.

   [ ] Any additional tangible personal property that Borrower now owns or later
   acquires in connection with Borrower's business, including replacement inventory.

   [ ] Other: ____________________.

3. Security for Promissory Note. Borrower is granting this security interest to secure
performance of a promissory note dated ______________ that Borrower executed in
favor of Lender. The promissory note obligates Borrower to pay Lender
$_____________ with interest at the rate of ___% a year, on the terms stated in the
promissory note.

4. Financing Statement. Borrower agrees that until the principal and interest owed
under the promissory note are paid in full, the note will be further secured by a Uniform
Commercial Code Financing Statement. Borrower will sign any other documents that
Lender reasonably requests to protect Lender's security interest in the Secured Property.

5. Use and Care of the Secured Property. Until the promissory note is fully paid,
Borrower agrees to:

   A. Keep at Borrower's premises the Secured Property owned by the Borrower's
   business and use it only in the operation of the business.

   B. Maintain the Secured Property in good repair.

   C. Not sell, transfer, or release the Secured Property unless Lender consents.
   Borrower may sell inventory in the ordinary course of Borrower's business, but will
   reasonably renew and replenish inventory to keep it at its current level.

   D. Pay all taxes on the Secured Property as taxes become due.

   E. Insure the Secured Property against normal risks, with an insurance policy that
   names Borrower and Lender as beneficiaries as their interests appear.

   F. Deliver to Lender a copy of the insurance policy insuring the Secured Property
   and provide annual proof to the Lender that Borrower has paid the premiums on the
   policy.

   G. Allow Lender to inspect the Secured Property at any reasonable time.

6. Borrower's Default. If Borrower is more than ___ days late in making any payment
required by the promissory note or if Borrower fails to correct any violations of
paragraph 5 of this Security Agreement within ___ days of receiving written notice from
Lender, Borrower will be in default.

7. Lender's Rights. If Borrower is in default, Lender may exercise the remedies
contained in the Uniform Commercial Code for the state of ____________ and any other
remedies legally available to Lender. Lender may, for example:

   A. Remove the Secured Property from the place where it is then located.

   B. Require Borrower to make the Secured Property available to Lender at a place
   designated by Lender that is reasonably convenient to Borrower and Lender.

   C. Sell, lease, or otherwise dispose of the Secured Property.

8. Notice to Borrower. Lender will give Borrower at least ten days notice of when and
where the Secured Property will be sold, leased, or otherwise disposed of. Any notice
required by this paragraph or by statute will be deemed given to Borrower if sent by first-
class mail to Borrower at the following address:

   ______________________________

9. Entire Agreement. This is the entire agreement between the parties. It replaces and
supersedes any and all oral agreements between the parties, as well as any prior writings.

10. Successors and Assignees. This agreement binds and benefits the heirs, successors,
and assignees of the parties.

11. Governing Law. This agreement will be governed by and construed in accordance
with the laws of the state of ______________.

12. Counterparts. This agreement may be signed by the parties in different counterparts
and the signature pages combined will create a document binding on all parties.

13. Modification. This agreement may be modified only by a written agreement signed
by all the parties.

14. Waiver. If one party waives any term or provision of this agreement at any time, that
waiver will only be effective for the specific instance and specific purpose for which the
waiver was given. If either party fails to exercise or delays exercising any of its rights or
remedies under this agreement, that party retains the right to enforce that term or
provision at a later time.

15. Severability. If any court determines that any provision of this agreement is invalid
or unenforceable, any invalidity or unenforceability will affect only that provision and
will not make any other provision of this agreement invalid or unenforceable and such
provision shall be modified, amended, or limited only to the extent necessary to render it
valid and enforceable.



LENDER

Name of Business: _____________________,

a ___________________________

By: __________________________

Dated: _____________________

Printed Name: __________________

Title: _____________________

Address: _____________________
          _____________________
BORROWER

Name of Business: _____________________,

a ___________________________

By: __________________________

Dated: _____________________

Printed Name: __________________

Title: _____________________

Address: _____________________
        _____________________
                                  Attachment 1
                                         to
                               Security Agreement

1. Names. This attachment is made by ________________, Borrower, and
_________________, Lender.

2. Terms of Attachment. We agree that the tangible personal property covered by
paragraph 2 of our Security Agreement dated ________________ includes the following:

       __________________________________________.



LENDER

Name of Business: _____________________,

a ___________________________

By: __________________________

Dated: _____________________

Printed Name: __________________

Title: _____________________

Address: _____________________
        _____________________



BORROWER

Name of Business: _____________________,

a ___________________________

By: __________________________

Dated: _____________________

Printed Name: __________________
Title: _____________________

Address: _____________________
        _____________________

				
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