Security Agreement for Buying Goods

Security Agreement for Buying Goods 1. Names Seller: _______________________________ Buyer: _______________________________ 2. Grant of Security Interest. Buyer grants to Seller a continuing security interest in the following property (the Secured Property), which consists of _______________________________________________, and all proceeds, products, and accessions of and to the property listed in this paragraph, including any money, property, or insurance proceeds Buyer receives from the loss, sale, transfer, or damage of or to the listed property. 3. Installment Payments. Buyer is granting this security interest to secure performance of Buyer's promise to make the following installment payments on the Secured Property as listed in the sales contract between Buyer and Seller dated ______________: ____________________________________________________________ 4. Financing Statement. Seller may file a Uniform Commercial Code Financing Statement to further protect Seller's security interest in the Secured Property. 5. Use and Care of the Secured Property. Until all installment payments have been made, Buyer agrees to: A. Keep the Secured Property at Buyer's premises. B. Maintain the Secured Property in good repair. C. Not sell, transfer, or release the Secured Property unless Seller consents. 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 Buyer and Seller as beneficiaries based on their respective interests in the property. Security Agreement for Buying Goods Page 1 F. Deliver to Seller a copy of the insurance policy insuring the Secured Property and provide annual proof to Seller that Buyer has paid the premiums on the policy. G. Allow Seller to inspect the Secured Property at any reasonable time. 6. Default of Buyer. Buyer will be in default if either of the following occur: A. Buyer is late in making any payment required by the sales contract and does not pay within ten days of Seller sending written notice of late payment. B. Buyer fails to correct any actual violations of paragraph 5 within ten days of receiving written notice from Seller. 7. Rights of Seller. If Buyer is in default, Seller may exercise the remedies contained in the Uniform Commercial Code for the State of _____________ and any other remedies legally available to Seller. Seller may, for example: A. Remove the Secured Property from the place where it is then located. B. Require Buyer to make the Secured Property available to Seller at a place designated by Seller that is reasonably convenient to Buyer and Seller. C. Sell or lease the Secured Property, or otherwise dispose of it. 8. Notice to Buyer. Seller will give Buyer at least five days notice of when and where the Secured Property will be sold, leased, or otherwise disposed of. Any notice required here or by statute will be deemed given to Buyer if sent by first-class mail to Buyer 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 Security Agreement for Buying Goods Page 2 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 shall be modified, amended, or limited only to the extent necessary to render it valid and enforceable. SELLER Name of Business: ______________ a ____________________________ By: __________________________ Dated: ________________________ Printed Name: _________________ Title: _________________________ Address: _______________________ _______________________ BUYER Name of Business: ______________ Security Agreement for Buying Goods Page 3 a ____________________________ By: __________________________ Dated: ________________________ Printed Name: __________________ Title: _________________________ Address: _______________________ _______________________ Security Agreement for Buying Goods Page 4