Security Agreement and Collateral Clause Samples
The Security Agreement and Collateral clause establishes the lender's legal right to claim specific assets of the borrower as security for a loan or other obligation. In practice, this clause identifies which assets—such as equipment, inventory, or accounts receivable—are pledged as collateral and outlines the lender's rights to seize or control these assets if the borrower defaults. Its core function is to protect the lender by providing a means to recover losses in the event of non-payment, thereby reducing the lender's risk.
Security Agreement and Collateral. Subject to the Permitted Liens, the payment and performance of the Obligations are secured by all Liens in favor of L▇▇▇▇▇ created under the Security Agreement, the Mortgage and under any other instrument or agreement delivered to Lender in conjunction with this Loan Agreement, encumbering the following personal property (collectively, the “Personal Property Collateral”):
(i) All Personal Property of Borrower, including, but not limited to, all Goods, Accounts, Inventory, Equipment, Fixtures, Chattel Paper, Instruments, Investment Property, Letter of Credit Rights, Deposit Accounts, Commercial Tort Claims, General Intangibles, Payment Intangibles, Cash Proceeds, Certificates of Title, Documents (as defined in the Code), As-Extracted Collateral, licenses and licensing rights, revenue, income, securities, letters of credit, deposits, money, intellectual property rights, systems, cash, timber, timber to be cut, oil, gas and other minerals extracted or to be extracted, shrubbery, apparatus, building materials and components, leases, rents and rent proceeds;
(ii) All cash, investments and securities on deposit in the various accounts established pursuant to Section 2.7(a) hereof; and
(iii) the Construction Contract; and
(iv) All of the foregoing whether now owned or hereafter acquired and wherever located, together with any products, proceeds and progeny thereof, and any appurtenances, accessions and other rights, claims or benefits arising from or pertaining thereto, including, but not limited to, any claims to any of the foregoing property, and any claims Borrower has against any third parties, for the damage to or destruction of any or all portions of such property and or for proceeds payable under, or unearned premiums with respect to, policies of insurance.
Security Agreement and Collateral. In addition to the pledges and liens set forth in, or created by, the Security Agreement, the Mortgages and under or in accordance with the other terms of this Loan Agreement, Borrower pledges and assigns to Lender the following property as collateral security for the repayment and performance of all or some portion of the Obligations and other covenants and agreements herein and in the other Loan Documents, as herein provided:
Security Agreement and Collateral. As security for (i) the payment of principal of, and interest on, the Loan and all other obligations, liabilities and indebtedness of the Borrower to the Lender, whether now existing or hereafter arising of every kind or nature whatsoever (collectively, the "Obligations"), and (ii) the performance of and compliance with all the terms of this Agreement and all other agreements with the Lender by the Borrower, the Borrower hereby assigns and grants to the Lender a security interest in the Collateral. The interests of the Lender in the Collateral may be evidenced by one or more duly executed security agreements accompanied by such financing statements, consents and other documents, duly executed, as the Lender may reasonably request. Notwithstanding the foregoing, the security interests granted herein shall not extend to and the term "Collateral" shall not include any property, rights or licenses to the extent the granting of a security interest therein is found by a court or other body of competent jurisdiction : (i) to be contrary to applicable law or (ii) to be prohibited by or to constitiute a default under any agreement or document governing such property, rights or licenses (but only to the extent such prohibition is enforceable under applicable law).
Security Agreement and Collateral
Security Agreement and Collateral