Security Agreement - General

Most loans between a borrower and a lender are typically formalized with a promissory note. In many instances the lender will want additional assurance that the loan will be repaid and ask that the borrower enter into a written Security Agreement. A Security Agreement benefits the lender in that it sets out the lender’s rights with regard to collateral. Having a written Security Agreement is beneficial as it clearly sets out a lender’s rights if a borrower defaults on a loan. (continued ...)