Arizona Security Agreement between Jon H. Rowberry and Franklin Covey Company

• Category: Corporations - Public - Security
• State: Multi-State
• Control #: US-EG-9055
• Format: Word; Rich Text

Description

Security Agreement between Jon H. Rowberry and Franklin Covey Company dated September 23, 1999. 3 pages Title: Understanding the Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company Introduction: The Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company is a legal document that outlines the terms and conditions regarding the security interests held by Franklin Covey Company over certain assets owned by Jon H. Row berry, the debtor. This agreement ensures that Franklin Covey Company has a security interest in the specified collateral as protection against any potential default or failure of repayment by the debtor. It is crucial to understand the contents and various types of Arizona Security Agreements to comprehend the rights and responsibilities of both parties involved. 1. Definition of Arizona Security Agreement: An Arizona Security Agreement is a legally binding document that establishes a creditor's security interest in specific personal property (collateral) to secure repayment of a debt or loan. In the case of Jon H. Row berry and Franklin Covey Company, this agreement aims to protect the interests of the lender by ensuring some form of repayment in case the debtor fails to fulfill their obligations. 2. Types of Arizona Security Agreements: a. Traditional Security Agreement: This typical agreement establishes a secured creditor's interest in specific collateral as security against the debtor's obligations. It specifies the types of collateral involved, such as equipment, vehicles, or inventory, and grants the creditor the right to repossess the collateral if the debtor defaults on their payment. b. Purchase Money Security Agreement (PSI): A PSI is a specific type of Arizona Security Agreement when a creditor provides financing to enable the debtor to purchase the collateral. For example, if Jon H. Row berry intends to buy equipment or machinery from Franklin Covey Company using credit from the same company, a PSI would be established to adequately secure the lender's interest in the financed property. c. Floating Lien Agreement: This agreement allows Franklin Covey Company to establish security interests in a broad range of current and future assets owned by Jon H. Row berry. The collateral listed in the agreement can include inventory, receivables, and other movable property, providing the lender with flexibility in securing their interests. d. Cross-Collateralization Agreement: A cross-collateralization agreement occurs when a single security agreement covers multiple loans or debts between Jon H. Row berry and Franklin Covey Company. This agreement allows the lender to use all the specified collateral from one loan to satisfy the debt of another, providing an increased level of protection for the creditor. Conclusion: The Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company is an essential legal document that ensures the protection of the lender's interests by establishing a security interest in specific collateral. By comprehending the different types of Arizona Security Agreements traditionalistSI, floating lien, and cross-collateralization — both parties can clarify their rights and obligations. It is crucial to consult legal professionals to draft and execute these agreements accurately, ensuring clarity and fairness for all involved parties.

Title: Understanding the Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company Introduction: The Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company is a legal document that outlines the terms and conditions regarding the security interests held by Franklin Covey Company over certain assets owned by Jon H. Row berry, the debtor. This agreement ensures that Franklin Covey Company has a security interest in the specified collateral as protection against any potential default or failure of repayment by the debtor. It is crucial to understand the contents and various types of Arizona Security Agreements to comprehend the rights and responsibilities of both parties involved. 1. Definition of Arizona Security Agreement: An Arizona Security Agreement is a legally binding document that establishes a creditor's security interest in specific personal property (collateral) to secure repayment of a debt or loan. In the case of Jon H. Row berry and Franklin Covey Company, this agreement aims to protect the interests of the lender by ensuring some form of repayment in case the debtor fails to fulfill their obligations. 2. Types of Arizona Security Agreements: a. Traditional Security Agreement: This typical agreement establishes a secured creditor's interest in specific collateral as security against the debtor's obligations. It specifies the types of collateral involved, such as equipment, vehicles, or inventory, and grants the creditor the right to repossess the collateral if the debtor defaults on their payment. b. Purchase Money Security Agreement (PSI): A PSI is a specific type of Arizona Security Agreement when a creditor provides financing to enable the debtor to purchase the collateral. For example, if Jon H. Row berry intends to buy equipment or machinery from Franklin Covey Company using credit from the same company, a PSI would be established to adequately secure the lender's interest in the financed property. c. Floating Lien Agreement: This agreement allows Franklin Covey Company to establish security interests in a broad range of current and future assets owned by Jon H. Row berry. The collateral listed in the agreement can include inventory, receivables, and other movable property, providing the lender with flexibility in securing their interests. d. Cross-Collateralization Agreement: A cross-collateralization agreement occurs when a single security agreement covers multiple loans or debts between Jon H. Row berry and Franklin Covey Company. This agreement allows the lender to use all the specified collateral from one loan to satisfy the debt of another, providing an increased level of protection for the creditor. Conclusion: The Arizona Security Agreement between Jon H. Row berry and Franklin Covey Company is an essential legal document that ensures the protection of the lender's interests by establishing a security interest in specific collateral. By comprehending the different types of Arizona Security Agreements traditionalistSI, floating lien, and cross-collateralization — both parties can clarify their rights and obligations. It is crucial to consult legal professionals to draft and execute these agreements accurately, ensuring clarity and fairness for all involved parties.