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Pledge of Shares of Stock in Security Agreement
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					                  Pledge of Shares of Stock in Security Agreement

        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.      Creation of Security Interest in Stock
        In consideration of and as security for the due and punctual payment by Debtor of
all loans by Creditor to Debtor under that certain Loan Agreement, dated (date), between
Debtor and Creditor, and the loan by Creditor to Debtor evidenced by that certain
Promissory Note (the Note) more fully identified in Exhibit A to the Loan Agreement,
and to secure the performance by Debtor of its obligations under the above-mentioned
Loan Agreement, Debtor pledges and assigns to Creditor the shares of stock described
in Exhibit B attached hereto and made a part hereof, represented by certificates of
stock numbered as set forth in said Exhibit B, hereinafter called the shares, which
have been delivered to Creditor, and Debtor pledges and assigns the shares to
Creditor and grants it a security interest in the shares pursuant to (cite appropriate
section of Article 9 of State’s Uniform Commercial Code).

2.      Representations and Warranties
        Debtor represents and warrants that Debtor owns the shares pledged, that the
shares are not subject to any lien, pledge, charge, encumbrance, security interest, or a
right or auction on the part of any third person to purchase or require such shares or
any part of them.

3.    Creditor’s Rights
      Creditor shall have, with respect to the shares, the rights and obligations of a
secured party under (cite appropriate section of Article 9 of State’s Uniform Commercial
Code).

4.     Remedies
       Upon default, as defined in the Loan Agreement, Debtor shall have the right to
transfer the shares of stock to its own name or to the name of its nominee; to sell,
assign or deliver as much of the shares of stock as may be necessary to repay the
unpaid obligation together with the expenses incurred in connection with such sale,
assignment or delivery, as the Creditor may choose. At any sale of the shares of stock,
whether private or public, Creditor may purchase and pay for the shares or any part of
the shares by cancelling a principal amount of the note or notes issued in accordance
with the Loan Agreement that is equal to the purchase price. Prior to conducting such
sale, Creditor agrees to notify Debtor at least (number) days before the date of the sale.
Creditor may sell the shares of stock or any portion of them covered by this Agreement
without first resorting to any other property of the Debtor. Debtor waives any right of
redemption with respect to the shares of stock sold.

5.    Application of Proceeds
       The proceeds from the sale of the shares of stock or any part of the same, on
default, shall be applied by the Creditor as follows:

       A.     First, to the payment of the costs and expenses of collection incurred by
       the Creditor, including, but not limited to, costs of any public or private sale,
       attorney's fees and all other reasonable expenses.

       B.    Second, to the payment of the entire amount of the principal and interests
       due and owed on the note or notes.

       C.     Any remaining proceeds from the sale will be delivered to Debtor.

6.     Collection of Dividends and Interest
       During the term of this Agreement and while the shares of stock are held by
Creditor, Creditor shall be entitled to receive and collect all dividends, interest
payments, and other amounts that may be, or become, due on any of the sha
				
DOCUMENT INFO
Description: A Pledge of Shares of Stock is used when a lender requires collateral for a debt. The collateral pledged with this agreement is shares of stock owned by the borrower. When the debt is paid in full, the share pledge agreement is no longer valid. During the time the agreement is in effect, the borrower generally retains the voting rights of the stock.
PARTNER William Glover
I received my B.B.A. from the University of Mississippi in 1973 and my J.D. from the University of Mississippi School of Law in 1976. I joined the firm of Wells Marble & Hurst in May 1976 as an Associate and became a Partner in 1979. While at Wells, I supervised all major real estate commercial loan transactions as well as major employment law cases. My practice also involved estate administration and general commercial law. I joined the faculty of Belhaven College, in Jackson, MS, in 1996 as Assistant Professor of Business Administration and College Attorney. While at Belhaven I taught Business Law and Business Ethics in the BBA and MBA programs; Judicial Process and Constitutional Law History for Political Science Department); and Sports Law for the Department of Sports Administration. I am now on the staff of US Legal Forms, Inc., and drafts forms, legal digests, and legal summaries. I am a LTC and was Staff Judge Advocate for the Mississippi State Guard from 2004-2008. I now serve as the Commanding Officer of the 220th MP BN at Camp McCain near Grenada, MS. I served on active duty during Hurricanes Dennis (July, 2005), Katrina (August, 2005) and Gustav in 2008. I played football at the University of Mississippi in 1969-1971 under Coach John Vaught. I am the author of the Sports Law Book (For Coaches and Administrators) and the Sports Law Handbook for Coaches and Administrators (with Legal Forms),