Security Agreement in Accounts Receivable and General Intangibles
Overview of this form
This Security Agreement in Accounts Receivable and General Intangibles is a legal document that establishes a secured transaction between a debtor and a secured party. The purpose of this form is to specify the collateral offered by the borrower, which can include accounts receivable and other general intangibles. This agreement protects lenders by allowing them to claim specific collateral if the borrower defaults, differentiating it from unsecured loans where no collateral is involved.
Key parts of this document
- Creation of security interest: Outlines how the security interest in collateral is established.
- Description of collateral: Specifies the property being used as collateral, including accounts receivable and general intangibles.
- Debtor's obligations: Details the debtor's responsibilities regarding payment and handling of accounts.
- Secured party's obligation: Indicates the secured party's responsibilities for advancing funds to the debtor.
- Default and remedies: Describes the conditions constituting default and the remedies available to the secured party.
Situations where this form applies
This form is useful in scenarios where a business needs to secure financing against its accounts receivable or general intangibles. It should be utilized when a debtor seeks a loan from a lender and intends to provide specific assets as collateral. This agreement helps protect the lender's interests by ensuring they have a legal claim to the collateral in case of non-payment or bankruptcy.
Who should use this form
- Businesses seeking to secure loans with their accounts receivable.
- Lenders looking for a legal method to secure interests in collateral.
- Corporations that need structured agreements for borrowing and financing.
Steps to complete this form
- Identify the parties: Enter the names and details of the debtor and secured party.
- Specify the collateral: Describe the accounts receivable and general intangibles being used as collateral.
- Enter dates: Fill in the date of the agreement and any associated payment dates.
- Review obligations: Ensure that all debtor obligations section is complete and reflects accurate terms.
- Sign the agreement: Obtain the necessary signatures from both parties to finalize the document.
Is notarization required?
This form does not typically require notarization unless specified by local law. However, verifying local requirements is essential to ensure enforceability.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to clearly describe the collateral, leading to potential disputes.
- Not reviewing applicable state laws that may affect the agreement.
- Omitting signatures or required fields, making the agreement unenforceable.
Why complete this form online
- Convenient access to a professionally drafted agreement that minimizes legal risks.
- Editability allows customization to fit specific needs or circumstances.
- Reliability of using a form drafted by licensed attorneys ensures compliance with legal standards.
Quick recap
- The Security Agreement protects lenders by allowing them to claim specified collateral in the event of borrower default.
- Using this form helps formalize the terms and conditions of securing a loan with accounts receivable.
- Proper completion and adherence to state laws are vital for enforceability.
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FAQ
A general intangible is the term for a non-physical asset that is not easily calculated. Examples include literary rights, things in action, and goodwill. General intangibles are particularly relevant when dealing with secured transactions.
A security agreement is a document that provides a lender a security interest in a specified asset or property that is pledged as collateral. Security agreements often contain covenants that outline provisions for the advancement of funds, a repayment schedule, or insurance requirements.
What is a General Security Agreement? A GSA is a contract signed between two parties, a borrower and a lender. The GSA protects the lender by creating a security interest in all or some of the assets of the borrower. In sum, the GSA outlines the terms and conditions of the loan, and lists the assets used for security.
A security agreement is a document that provides a lender a security interest in a specified asset or property that is pledged as collateral. Security agreements often contain covenants that outline provisions for the advancement of funds, a repayment schedule, or insurance requirements.
A General Security Agreement (GSA) grants a security interest over personal property or assets, the collateral pledged for many types of financing. The contract is executed by a debtor (borrower) in favor of a creditor (lender).
The chief security for the loan is the general business security agreement (GBSA) giving the bank a security interest in all of the business assets of the borrower company. You have perfected your security interest by filing a Uniform Commercial Code (UCC) financing statement with the central state filing repository.
To perfect a security interest in general intangibles, a lender must file a proper financing statement in the UCC filing office in the state where the debtor is deemed to be located under the UCC (typically, the state where the debtor is organized).
A basic security agreement should have the description of the parties involved, the collateral and the statement of intention of providing security interest along with signatures from all parties.
