General Form of Security Agreement Covering Consumer Goods by pellcity27

VIEWS: 96 PAGES: 5

More Info
									          General Form of Security Agreement Covering Consumer Goods

        Security Agreement made on the (date), between (Name of Debtor) of (street
address, city, 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, state, zip code),
hereinafter called Secured Party.
1.      Grant of Security Interest
        For valuable consideration, receipt of which is acknowledged, Debtor grants to
Secured Party a purchase-money security interest under (cite appropriate section of
Article 9 of State’s Uniform Commercial Code), in the following property described in
Exhibit A attached hereto and made a part hereof, together with any and all additions
and accessions to the property (hereinafter collectively called Collateral), to secure
payment of the total Obligation advanced by Secured Party to enable Debtor to acquire
said Collateral, as evidenced by this Agreement and by Debtor's Promissory Note of
even date, hereinafter called the Obligation.

2.     Terms of Obligation
       The Obligation is payable on the following terms: (state terms of sale or loan).

     (Set forth any consumer credit disclosures required by federal or state law).

3.     Location of Collateral
       The Collateral shall be kept at street address, city, state, zip code), until such time
as written consent to a change of location is obtained from Secured Party.

4.     Attachment to Real Property
       If the Collateral is to be attached to real estate, a description of the real estate is
attached hereto as Exhibit B, and made a part hereof, prior to the perfection of the
security interest granted by this Agreement, Debtor shall on Secured Party's demand
furnish Secured Party with a disclaimer or disclaimers, signed by all persons having any
interest in such real estate, of any interest in the Collateral that is prior to Secured
Party's interest.

5.     Debtor’s Rights in Collateral
       Debtor warrants and covenants that, except for the security interest granted by
this Agreement, Debtor is the owner of the Collateral free from any prior lien, security
interest or encumbrance. Debtor shall defend the Collateral against all claims and
demands of all persons at any time claiming Collateral or any interest in the Collateral.

6.     Protection of Collateral
       Debtor shall keep the Collateral free from any adverse lien, security interest or
encumbrance, and in good order and repair, shall not waste or destroy the Collateral or
any part of the same, and shall not use the Collateral in violation of any applicable
statute, ordinance or policy of insurance on the Collateral. Secured Party may examine
and inspect the Collateral, wherever located, at any reasonable time or times.
7.       Filing
         No financing statement covering the Collateral or any proceeds of the same is on
file in any public office. Debtor shall immediately notify Secured Party in writing of any
change in address from that shown in this Agreement. Debtor shall also on demand
furnish to Secured Party such further information, shall execute or join in executing and
deliver to Secured Party such financing statements and other papers, and shall do all
such acts and things as Secured Party may at any time reasonably request that may be
necessary or appropriate to perfect and maintain a valid security interest in the Collateral
as security for the Obligation, subject to no prior liens or encumbrances.

8.     Transfer of Collateral
       Debtor shall not sell, offer to sell or otherwise transfer or encumber the Collateral
or any interest in the Collateral without Secured Party's prior written consent.

9.      Insurance
        Debtor shall keep the Collateral at all times insured against risks of loss or
damage by fire (including so-called extended coverage), theft and such other casualties
as Secured Party may reasonably require, including collision in the case of any motor
vehicle, all in such amounts, under such forms of policies on such terms, for such
periods, and written by such companies or underwriters as Secured Party may approve.
Losses in all cases shall be payable to Secured Party and Debtor as their interests may
appear. All policies of insurance shall provide for at least (number) days' prior written
notice of cancellation to Secured Party. Debtor shall furnish Secured Party with
certificates of such insurance or other evidence satisfactory to Secured Party as to
compliance with the provisions of this section. Secured Party may act as attorney for
Debtor in making, adjusting and settling claims under and canceling such insurance and
endorsing Debtor's name on any drafts drawn by insurers of the Collateral.

10.      Taxes and Assessments
         Debtor shall pay promptly when due all taxes and assessments on the Collateral
or for its use or operation, on this Agreement or on any note or notes evidencing any
part of Obligation.

11.    Reimbursement of Secured Party
       Secured Party may, but is not required to, discharge tax or other liens, security
interests or other encumbrances at any time levied or placed on the Collateral, may
place and pay for insurance on the Collateral, may order and pay for the repair,
maintenance and preservation of the Collateral, and may pay any necessary filing or
recording fees. Debtor shall reimburse Secured Party on demand for any payment made
or any expense incurred by Secured Party pursuant to the foregoing authorization.

12.    Possession of Collateral
       Until default, Debtor may have possession of the Collateral and use the Collateral
in any lawful manner not inconsistent with this Agreement.

13.    Default
       The happening of any of the following events or conditions shall constitute default
under this Agreement:

       A.      Failure or delay in the payment or performance of any Obligation, covenant
       or liability contained or referred to in this Agreement or in any note evidencing any
       part of
								
To top