This security agreement and promissory note template has 4 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our security agreement and promissory note template:
SECURITY AGREEMENT AND PROMISSORY NOTE This Security Agreement (the "Agreement") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the "Secured Party"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the "Debtor"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note ("Secured Party"), at its office at [address], [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount], except the final Installment, which shall be the balance due on this note. Each such Installment is payable on the [day] of each month, commencing on [date]. SECURITY To secure the payment of this note [if appropriate, add: and all other obligations of Debtor to Secured Party, its successors and assigns, however created, whether direct or indirect, absolute or contingent, or now or later existing, Debtor grants to Secured Party a security interest in the following property and all accessories, parts, and equipment now or later affixed to the same: (describe Collateral)]. [If appropriate, add: To further secure the payment of this note, Secured Party shall have a lien on and recourse to any property belonging to Debtor that now or later is in the possession or control of Secured Party.] Such property shall be in this agreement collectively referred to as "Collateral." WARRANTIES AND COMMITMENTS Debtor warrants and agrees that: To the extent, if any, that Debtor advises Secured Party that any of Collateral is being acquired with the proceeds of the note, such proceeds may be disbursed by Secured Party directly to the seller of such Collateral. Collateral, other than any part of Collateral that prior to the execution of this agreement Debtor advises Secured Party in writing consists of equipment normally used in more than one state, shall be kept at the address of Debtor shown above and shall not be moved without the prior written consent of Secured Party, [if appropriate, add: except, in the case of motor vehicles, for temporary and ordinary use in (state)]. If any of Collateral shall consist of equipment of a type normally used in more than one State, whether or not actually so used, Debtor shall immediately give written notice to Secured Party of any change in the principal place of business of Debtor, and of any use of any such Collateral in any State other than a State that Debtor has previously advised Secured Party that Debtor would use Collateral. Such Collateral will not, unless Secured Party shall otherwise consent in writing, be used outside the territorial limits of the [country]. Debtor has, or immediately will acquire, full title to Collateral, and shall at all times keep Collateral free of all liens and claims whatsoever, other than the security interest under this note and agreement. No financing statement covering any of the Collateral is on file in any public office, and Debtor shall from time to time, at the request of Secured Party, execute or join in executing such financing statement and other documents, pay the cost of filing or recording the statement and documents in all public offices deemed necessary by Secured Party, and do such other acts as Secured Party may request to perfect, establish and maintain a valid security interest in Collateral, including, but not limited to, deposit with Secured Party of any certificate of title issuable with respect to any of Collateral and notation on the certificate of the security interest under this note and agreement. Debtor shall not sell, transfer, lease or otherwise dispose of any of Collateral or any interest in Collateral except with the prior written consent of Secured Party. Debtor shall at all times keep Collateral in good order and repair, excepting any loss, damage or destruction that is fully covered by proceeds of insurance or that results from ordinary use. Debtor shall at all times keep Collateral insured against loss, damage, theft and other risks, in such amounts, with such companies and under such policies and in such form as shall be satisfactory to Secured Party. Such policies shall provide that loss under the policy shall be payable to Secured Party as its interest may appear, and Secured Party may apply any proceeds of such insurance that may be received by Secured Party to payment of any of the liabilities of Debtor to Secured Party regardless of whether due. Such application of proceeds may be made in such order as Secured Party determines proper. Such policies of insurance shall, if secured parties so request, be deposited with Secured Party. Secured party may examine and inspect Collateral or any part of the same, wherever located, at any reasonable time. USE OF COLLATERAL Until default under this note and agreement, Debtor may have possession of Collateral and use the same in any lawful manner not inconsistent with this note and agreement or with any policy of insurance on any of Collateral. REIMBURSEMENT OF EXPENSES
