General Security Agreement

• Secured Party (Lender):
  [Lender’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business located at [Lender’s Address].

• Debtor (Borrower):
  [Borrower’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business or residence at [Borrower’s Address].

Both parties, having the legal capacity to enter into this Agreement, agree as follows:

1. Grant of Security Interest

1.1. Security Interest – The Borrower grants the Lender a security interest in the following assets (“Collateral”) as security for the repayment of the financial obligation described in this Agreement:

• All present and future personal property, inventory, equipment, accounts receivable, cash deposits, contract rights, and general intangibles owned by the Borrower
• Any proceeds from the sale, transfer, or exchange of the Collateral

1.2. Secured Obligations – The security interest is granted to secure payment and performance of the following obligations:

• [Describe the financial obligation, such as a loan, promissory note, line of credit, or outstanding debt]
• [Payment terms and repayment schedule]

1.3. Perfection of Security Interest – The Lender may file a UCC-1 Financing Statement or take other necessary actions to perfect its security interest.

2. Borrower’s Representations and Warranties

2.1. The Borrower represents and warrants that:

• It is the legal and rightful owner of the Collateral and has full authority to grant this security interest.
• The Collateral is free from any prior liens, claims, or encumbrances, except as disclosed to the Lender.
• The execution and performance of this Agreement do not violate any contractual or legal obligations of the Borrower.

3. Borrower’s Covenants

3.1. The Borrower agrees to:

• Maintain the Collateral in good condition and not transfer, sell, or dispose of it without prior written consent from the Lender.
• Keep the Collateral insured against loss or damage, naming the Lender as a loss payee where applicable.
• Provide the Lender with access to inspect the Collateral upon reasonable notice.
• Notify the Lender immediately of any changes affecting the Collateral or its value.

4. Default and Remedies

4.1. Events of Default – The Borrower shall be in default under this Agreement if:

• The Borrower fails to make any required payment when due.
• The Borrower files for bankruptcy, becomes insolvent, or assigns assets for the benefit of creditors.
• The Borrower breaches any term or covenant of this Agreement.
• The Borrower sells, transfers, or disposes of the Collateral without the Lender’s consent.

4.2. Remedies Upon Default – If the Borrower defaults, the Lender may:

• Declare all Secured Obligations immediately due and payable.
• Take possession of and liquidate the Collateral to satisfy the debt.
• Apply proceeds from the sale of Collateral toward outstanding obligations, returning any surplus to the Borrower.
• Pursue legal action to recover any remaining balance due after repossession.

5. Insurance and Risk Management

5.1. Insurance Requirement – The Borrower shall maintain adequate insurance coverage on any physical assets pledged as Collateral, naming the Lender as a loss payee where applicable.

5.2. Loss or Damage – The Borrower assumes all risks of loss or damage to the Collateral unless otherwise specified in this Agreement.

6. Governing Law and Jurisdiction

6.1. This Agreement shall be governed by and construed in accordance with the laws of the state of [State].

6.2. Any disputes arising under this Agreement shall be resolved in the courts of [State], unless otherwise agreed in writing.

7. Miscellaneous Provisions

7.1. Amendments – Any modifications to this Agreement must be in writing and signed by both parties.

7.2. Severability – If any provision of this Agreement is deemed invalid, the remaining provisions shall remain in full force and effect.

7.3. Waiver – Failure to enforce any provision shall not constitute a waiver of future enforcement rights.

7.4. Entire Agreement – This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements.

8. Notices

All notices required under this Agreement shall be in writing and sent via certified mail, email, or in person to the following addresses:

• Lender (Secured Party):
  [Lender’s Name]
  [Lender’s Address]
  [Email Address]

• Borrower (Debtor):
  [Borrower’s Name]
  [Borrower’s Address]
  [Email Address]

9. Signatures

IN WITNESS WHEREOF, the parties have executed this General Security Agreement as of the date first written above.

Lender (Secured Party):
By: ___________________________
Title: __________________________
Date: __________________________

Borrower (Debtor):
By: ___________________________
Title: __________________________
Date: __________________________