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Secured Party:
[Secured Party’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 [Secured Party’s Address]. -
Debtor:
[Debtor’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 [Debtor’s Address].
Both parties, having the legal capacity to enter into this Agreement, agree as follows:
1. Grant of Security Interest
1.1. The Debtor hereby grants the Secured Party a security interest in the following described personal property (“Collateral”):
- [Detailed Description of Personal Property, including serial numbers, identifying marks, or location]
1.2. This security interest is granted to secure payment and performance of the following obligations (“Secured Obligations”):
- [Specify the loan, debt, or obligations that the security interest secures]
- [Repayment terms, if applicable]
1.3. The Secured Party shall have a lien on the Collateral until the Secured Obligations are fully satisfied.
2. Representations and Warranties of Debtor
2.1. The Debtor represents and warrants that:
- The Debtor is the legal owner of the personal property and has the right to grant this security interest.
- The personal property is free of liens, claims, or encumbrances, except as disclosed in this Agreement.
- The execution and performance of this Agreement do not violate any other contracts, agreements, or legal obligations.
3. Covenants of Debtor
3.1. The Debtor agrees to:
- Maintain the personal property in good working condition and comply with all necessary maintenance and repairs.
- Not sell, transfer, or otherwise dispose of the personal property without prior written consent from the Secured Party.
- Keep the personal property insured against loss or damage, naming the Secured Party as a loss payee, if applicable.
- Provide the Secured Party with access to inspect the personal property upon reasonable notice.
4. Default
4.1. The following events shall constitute Default under this Agreement:
- Failure to pay any secured obligation when due.
- Breach of any term or covenant in this Agreement.
- Unauthorized sale, transfer, or encumbrance of the personal property.
- Bankruptcy, insolvency, or assignment for the benefit of creditors by the Debtor.
- Loss, destruction, or significant damage to the personal property without adequate insurance coverage.
5. Remedies Upon Default
5.1. Upon default, the Secured Party may:
- Declare all Secured Obligations immediately due and payable.
- Take possession of the personal property without judicial process, if permitted by law.
- Sell, lease, or dispose of the personal property in accordance with applicable laws.
- Pursue any other remedies available under the Uniform Commercial Code (UCC) or applicable law.
5.2. The Debtor agrees that in the event of repossession, the Secured Party may sell the personal property at public or private sale and apply the proceeds to the outstanding debt, with any surplus returned to the Debtor.
6. Insurance Requirement
6.1. The Debtor agrees to maintain:
- Insurance coverage with a minimum coverage amount of $[Amount], naming the Secured Party as a lienholder, if applicable.
6.2. The Debtor must provide proof of insurance to the Secured Party upon request.
7. Governing Law
7.1. This Agreement shall be governed by and construed under the laws of the state of [State].
8. Miscellaneous Provisions
8.1. Amendments – Any modifications to this Agreement must be in writing and signed by both parties.
8.2. Severability – If any provision of this Agreement is deemed invalid, the remaining provisions shall continue in full force and effect.
8.3. Waiver – Failure to enforce any provision shall not constitute a waiver of the right to enforce that provision in the future.
8.4. Entire Agreement – This Agreement constitutes the entire understanding between the parties regarding the subject matter herein.
9. Notices
All notices required under this Agreement shall be in writing and delivered via certified mail, email, or in person to the addresses listed below:
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Secured Party:
[Secured Party’s Name]
[Secured Party’s Address]
[Email Address] -
Debtor:
[Debtor’s Name]
[Debtor’s Address]
[Email Address]
10. Signatures
IN WITNESS WHEREOF, the parties have executed this Personal Property Security Agreement as of the date first written above.
Secured Party:
By: ___________________________
Title: __________________________
Date: __________________________
Debtor:
By: ___________________________
Title: __________________________
Date: __________________________