North Carolina Security Agreement in Accounts and Contract Rights

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US-01730BG
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Description

A secured transaction is created when a buyer or borrower (debtor) grants a seller or lender (creditor or secured party) a security interest in personal property (collateral). A security interest allows a creditor to repossess and sell the collateral if a debtor fails to pay a secured debt.


A secured transaction involves a sale on credit or lending money where a creditor is unwilling to accept the promise of a debtor to pay an obligation without some sort of collateral. The creditor requires the debtor to secure the obligation with collateral so that if the debtor does not pay as promised, the creditor can take the collateral, sell it, and apply the proceeds against the unpaid obligation of the debtor. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The property that is subject to the security interest is called the collateral. The party holding the security interest is called the secured party.


A North Carolina Security Agreement in Accounts and Contract Rights refers to a legal contract that is established to secure the repayment of a debt or obligation using a borrower's accounts and contract rights as collateral. This agreement is commonly utilized in commercial loans and financing transactions. A security agreement grants the lender a security interest in the borrower's accounts receivable, which represent funds owed to the borrower by its customers, and the borrower's contract rights, which refer to the rights and obligations derived from contractual agreements between the borrower and its customers. By creating a security interest in these assets, the lender can have a claim against them in the event of default by the borrower. The security agreement generally outlines the rights and responsibilities of both parties and establishes the procedures for enforcing the security interest. In North Carolina, there are different types of security agreements that can be established depending on the nature of the underlying transaction. Some notable variations include: 1. General Security Agreement: This type of agreement grants the lender a security interest in all present and future accounts and contract rights of the borrower. It offers a broad coverage of all assets owned by the borrower that fall under the accounts and contract rights category. 2. Specific Security Agreement: Unlike the general security agreement, a specific security agreement targets particular accounts and contract rights outlined in the agreement. This type of agreement is often used when only a specific subset of accounts and contract rights are considered essential for securing the debt. 3. Floating Lien Agreement: This type of agreement allows the borrower to continue conducting business and generating new accounts and contract rights during the borrowing period while still providing collateral for the lender. The lender has a security interest in the borrower's fluctuating accounts and contract rights, providing a flexible approach to securing the debt. 4. Pledge Agreement: While not strictly a security agreement in accounts and contract rights, a pledge agreement involves the borrower transferring possession of the accounts and contract rights to the lender as collateral. The lender holds the assets until the debt is repaid, upon which the ownership is returned to the borrower. In summary, a North Carolina Security Agreement in Accounts and Contract Rights provides a mechanism for securing debt by granting a lender a security interest in a borrower's accounts receivable and contract rights. Various types of agreements can be established based on the specific needs and circumstances of the parties involved, such as general security agreements, specific security agreements, floating lien agreements, and pledge agreements.

A North Carolina Security Agreement in Accounts and Contract Rights refers to a legal contract that is established to secure the repayment of a debt or obligation using a borrower's accounts and contract rights as collateral. This agreement is commonly utilized in commercial loans and financing transactions. A security agreement grants the lender a security interest in the borrower's accounts receivable, which represent funds owed to the borrower by its customers, and the borrower's contract rights, which refer to the rights and obligations derived from contractual agreements between the borrower and its customers. By creating a security interest in these assets, the lender can have a claim against them in the event of default by the borrower. The security agreement generally outlines the rights and responsibilities of both parties and establishes the procedures for enforcing the security interest. In North Carolina, there are different types of security agreements that can be established depending on the nature of the underlying transaction. Some notable variations include: 1. General Security Agreement: This type of agreement grants the lender a security interest in all present and future accounts and contract rights of the borrower. It offers a broad coverage of all assets owned by the borrower that fall under the accounts and contract rights category. 2. Specific Security Agreement: Unlike the general security agreement, a specific security agreement targets particular accounts and contract rights outlined in the agreement. This type of agreement is often used when only a specific subset of accounts and contract rights are considered essential for securing the debt. 3. Floating Lien Agreement: This type of agreement allows the borrower to continue conducting business and generating new accounts and contract rights during the borrowing period while still providing collateral for the lender. The lender has a security interest in the borrower's fluctuating accounts and contract rights, providing a flexible approach to securing the debt. 4. Pledge Agreement: While not strictly a security agreement in accounts and contract rights, a pledge agreement involves the borrower transferring possession of the accounts and contract rights to the lender as collateral. The lender holds the assets until the debt is repaid, upon which the ownership is returned to the borrower. In summary, a North Carolina Security Agreement in Accounts and Contract Rights provides a mechanism for securing debt by granting a lender a security interest in a borrower's accounts receivable and contract rights. Various types of agreements can be established based on the specific needs and circumstances of the parties involved, such as general security agreements, specific security agreements, floating lien agreements, and pledge agreements.

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FAQ

Thus, when the collateral is not in the possession of the secured party, a security agreement must be in writing to be enforceable. The agreement must be signed by the debtor, contain a description of the property, and the description must reasonably identify the property involved (the collateral).

In order for a security interest to be enforceable against the debtor and third parties, UCC Article 9 sets forth three requirements: Value must be provided in exchange for the collateral; the debtor must have rights in the collateral or the ability to convey rights in the collateral to a secured party; and either the ...

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 statute of frauds within UCC Article 9 requires the security agreement be in writing. An exception to this requirement is when a security interest is pledged.

Security agreements are contracts. Article 9 of the Uniform Commercial Code governs security interests in personal property. It has been adopted, with some modifications, by every state. A security agreement must comply with other state laws governing contracts.

There are four primary ways in which an attached security interest may be perfected ? filing, possession, control and automatic perfection. The most common method of perfecting a security interest is filing a financing statement.

A security agreement creates the security interest, making it enforceable between the secured party and the debtor. A UCC-1 financing statement neither creates a security interest nor does it alter its scope; it only gives notice of the security interest to third parties.

At a minimum, a valid security agreement consists of a description of the collateral, a statement of the intention of providing security interest, and signatures from all parties involved. Most security agreements, however, go beyond these basic requirements.

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The Clerk of Superior Court is to execute the Security Agreement, (Side Two) and forward the entire form to the Depository for execution. The Depository should ... The Borrower agrees to pay all fees (including reasonable attorneys' fees), costs, taxes and expenses paid or incurred by the Lender in connection with the ...(a) Debtor shall maintain at its principal place of business complete records regarding all account balances due Debtor, whether secured or unsecured, which ... A simple letter from the debtor can suffice as long as it is signed by the debtor and the property owner, adequately describes the collateral and makes it clear ... INSTRUCTIONS: Form COLL-93A consists of two documents: “Depository Resolution” found on Page 1; and “Security Agreement” found on Pages 2-7. The State ... (49) "Investment property" means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity ... by FW Hanft · 1966 · Cited by 4 — ... the case of assign- ment of accounts the validity and perfection of the security interest is determined by the law of the state in which is located the office. d. The collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party ... Vendor shall cooperate with the State and the Supplier Manager to mitigate and correct any security breach. E-PROCUREMENT FEES – APPLICABLE ONLY TO GOODS ... Security interest arising in purchase or delivery of financial asset. 25-9-207. Rights and duties of secured party having possession or control of collateral.

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North Carolina Security Agreement in Accounts and Contract Rights