New York Security Agreement regarding borrowing of funds and granting of security interest in assets

• Category: Corporations - Public - Security
• State: Multi-State
• Control #: US-EG-9502
• Format: Word; Rich Text

Description

Security Agreement between Caldera Systems, Inc. and The Canopy Group, Inc. regarding borrowing of funds and granting of security interest in assets dated September 1, 1998. 4 pages. The New York Security Agreement is a legally binding document that outlines the terms and conditions for borrowing funds and granting a security interest in assets. This agreement is commonly used in lending transactions and acts as a safeguard for lenders, ensuring that they have a security interest in collateral provided by borrowers. Here, we will delve into the details of what this agreement entails and highlight some of its key aspects. The primary purpose of the New York Security Agreement is to provide assurance to lenders that they will be able to recover their funds in the event of default or non-payment. This agreement allows borrowers to secure loans by granting a security interest in their assets, which may include tangible assets such as real estate, equipment, or inventory, as well as intangible assets like intellectual property or contractual rights. Several key clauses make up the New York Security Agreement: 1. Grant of Security Interest: This clause outlines the specific assets that are being pledged as collateral to secure the loan. It identifies the asset types, their location or description, and any relevant details necessary to establish a valid security interest. 2. Perfection and Priority: This clause covers the steps required to perfect the security interest, ensuring that it takes priority over other competing interests. These steps may include filing a financing statement with a designated authority, such as the Secretary of State, to publicly record the security interest. 3. Representations and Warranties: This section contains statements made by the borrower regarding ownership and control of the assets, confirming that there is no undisclosed debt or encumbrance on the collateral. It also ensures that the borrower has the right and authority to grant a security interest in the assets. 4. Covenants: This clause imposes obligations on the borrower to maintain and preserve the collateral, including requirements for insurance coverage, maintenance, and compliance with laws and regulations. 5. Events of Default: This section outlines the events that would trigger a default, such as non-payment, breach of covenants, or insolvency. It specifies the actions the lender may take upon default, including acceleration of the loan, repossession, and sale of the collateral. It is important to note that there are various types of New York Security Agreements that may be used for specific purposes or circumstances. For example: 1. Real Estate Mortgage: This security agreement is used when borrowing funds secured by real estate properties. It provides a lien on the property, allowing the lender to foreclose and sell it to satisfy the debt. 2. Intellectual Property Security Agreement: This agreement is employed when the borrower wishes to secure a loan with intellectual property assets, such as patents, trademarks, or copyrights. It defines the specific IP assets being pledged as collateral and outlines the relevant provisions for their protection. 3. UCC Financing Statement: This is a commonly used form of New York Security Agreement governed by the Uniform Commercial Code. It applies to a wide range of assets, including inventory, accounts receivable, and equipment. It provides a general security interest in all assets, both present and future, owned by the borrower. In conclusion, the New York Security Agreement is a critical legal contract that allows lenders to secure their funds by obtaining a security interest in borrowers' assets. The agreement contains various clauses that dictate the terms and conditions, ensuring the protection of both parties involved. Understanding the different types of New York Security Agreements enables borrowers and lenders to select the most appropriate agreement based on the nature of the transaction and the assets being pledged as collateral.

The New York Security Agreement is a legally binding document that outlines the terms and conditions for borrowing funds and granting a security interest in assets. This agreement is commonly used in lending transactions and acts as a safeguard for lenders, ensuring that they have a security interest in collateral provided by borrowers. Here, we will delve into the details of what this agreement entails and highlight some of its key aspects. The primary purpose of the New York Security Agreement is to provide assurance to lenders that they will be able to recover their funds in the event of default or non-payment. This agreement allows borrowers to secure loans by granting a security interest in their assets, which may include tangible assets such as real estate, equipment, or inventory, as well as intangible assets like intellectual property or contractual rights. Several key clauses make up the New York Security Agreement: 1. Grant of Security Interest: This clause outlines the specific assets that are being pledged as collateral to secure the loan. It identifies the asset types, their location or description, and any relevant details necessary to establish a valid security interest. 2. Perfection and Priority: This clause covers the steps required to perfect the security interest, ensuring that it takes priority over other competing interests. These steps may include filing a financing statement with a designated authority, such as the Secretary of State, to publicly record the security interest. 3. Representations and Warranties: This section contains statements made by the borrower regarding ownership and control of the assets, confirming that there is no undisclosed debt or encumbrance on the collateral. It also ensures that the borrower has the right and authority to grant a security interest in the assets. 4. Covenants: This clause imposes obligations on the borrower to maintain and preserve the collateral, including requirements for insurance coverage, maintenance, and compliance with laws and regulations. 5. Events of Default: This section outlines the events that would trigger a default, such as non-payment, breach of covenants, or insolvency. It specifies the actions the lender may take upon default, including acceleration of the loan, repossession, and sale of the collateral. It is important to note that there are various types of New York Security Agreements that may be used for specific purposes or circumstances. For example: 1. Real Estate Mortgage: This security agreement is used when borrowing funds secured by real estate properties. It provides a lien on the property, allowing the lender to foreclose and sell it to satisfy the debt. 2. Intellectual Property Security Agreement: This agreement is employed when the borrower wishes to secure a loan with intellectual property assets, such as patents, trademarks, or copyrights. It defines the specific IP assets being pledged as collateral and outlines the relevant provisions for their protection. 3. UCC Financing Statement: This is a commonly used form of New York Security Agreement governed by the Uniform Commercial Code. It applies to a wide range of assets, including inventory, accounts receivable, and equipment. It provides a general security interest in all assets, both present and future, owned by the borrower. In conclusion, the New York Security Agreement is a critical legal contract that allows lenders to secure their funds by obtaining a security interest in borrowers' assets. The agreement contains various clauses that dictate the terms and conditions, ensuring the protection of both parties involved. Understanding the different types of New York Security Agreements enables borrowers and lenders to select the most appropriate agreement based on the nature of the transaction and the assets being pledged as collateral.