Tennessee 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. A Tennessee Security Agreement is a legal document that outlines the conditions and terms under which a borrower can borrow funds by offering certain assets as collateral. It establishes a security interest in these assets in favor of the lender, protecting their rights in case of default or failure to repay the borrowed funds. The agreement serves as a means to mitigate risks associated with lending and borrowing transactions. In Tennessee, there are two primary types of Security Agreements regarding borrowing of funds and granting of security interest in assets: 1. Real Estate Security Agreement: This type of Security Agreement involves borrowing funds while using real estate properties, such as land, buildings, or homes, as collateral. It provides the lender with a security interest in the specific real estate assets mentioned in the agreement. In the event of default, the lender can seek foreclosure on the real estate assets to recover the outstanding borrowed amount. 2. Personal Property Security Agreement: This type of Security Agreement involves borrowing funds with personal assets, including but not limited to vehicles, equipment, inventory, or accounts receivable, serving as collateral. The agreement specifies the personal property that is subject to the security interest. In case of default, the lender has the right to seize and sell the collateral to recover the borrowed funds. The Tennessee Security Agreement generally includes the following key elements: 1. Parties involved: The agreement names the borrower and the lender involved in the transaction, clearly identifying their roles and obligations. 2. Description of collateral: The collateral being used to secure the loan is described in detail, including specific identification, such as property address, vehicle identification numbers, serial numbers, and/or general description (e.g., inventory, accounts receivable). 3. Granting of security interest: The agreement states that the borrower grants the lender a security interest in the specified collateral as collateral for the borrowed funds. 4. Borrowed amount and terms: The agreement outlines the amount borrowed and the repayment terms, including interest rate, repayment schedule, and any other fees or charges payable by the borrower. 5. Representations and warranties: Both parties may include representations and warranties regarding their legal capacity to enter into the agreement, the ownership of the collateral, and its unencumbered status. 6. Default and remedies: The agreement establishes the events that would constitute default, such as non-payment, breach of terms, or bankruptcy. It also details the remedies available to the lender in case of default, such as repossession and sale of the collateral. 7. Governing law and jurisdiction: The agreement specifies that it is governed by Tennessee state laws and identifies the jurisdiction where any disputes would be resolved (usually a specific county or district court). Tennessee Security Agreements are essential in providing a legal framework for borrowing funds and granting security interest in assets. By clearly defining the rights and obligations of both parties involved, these agreements help protect the lender's interests and ensure the repayment of borrowed funds.

A Tennessee Security Agreement is a legal document that outlines the conditions and terms under which a borrower can borrow funds by offering certain assets as collateral. It establishes a security interest in these assets in favor of the lender, protecting their rights in case of default or failure to repay the borrowed funds. The agreement serves as a means to mitigate risks associated with lending and borrowing transactions. In Tennessee, there are two primary types of Security Agreements regarding borrowing of funds and granting of security interest in assets: 1. Real Estate Security Agreement: This type of Security Agreement involves borrowing funds while using real estate properties, such as land, buildings, or homes, as collateral. It provides the lender with a security interest in the specific real estate assets mentioned in the agreement. In the event of default, the lender can seek foreclosure on the real estate assets to recover the outstanding borrowed amount. 2. Personal Property Security Agreement: This type of Security Agreement involves borrowing funds with personal assets, including but not limited to vehicles, equipment, inventory, or accounts receivable, serving as collateral. The agreement specifies the personal property that is subject to the security interest. In case of default, the lender has the right to seize and sell the collateral to recover the borrowed funds. The Tennessee Security Agreement generally includes the following key elements: 1. Parties involved: The agreement names the borrower and the lender involved in the transaction, clearly identifying their roles and obligations. 2. Description of collateral: The collateral being used to secure the loan is described in detail, including specific identification, such as property address, vehicle identification numbers, serial numbers, and/or general description (e.g., inventory, accounts receivable). 3. Granting of security interest: The agreement states that the borrower grants the lender a security interest in the specified collateral as collateral for the borrowed funds. 4. Borrowed amount and terms: The agreement outlines the amount borrowed and the repayment terms, including interest rate, repayment schedule, and any other fees or charges payable by the borrower. 5. Representations and warranties: Both parties may include representations and warranties regarding their legal capacity to enter into the agreement, the ownership of the collateral, and its unencumbered status. 6. Default and remedies: The agreement establishes the events that would constitute default, such as non-payment, breach of terms, or bankruptcy. It also details the remedies available to the lender in case of default, such as repossession and sale of the collateral. 7. Governing law and jurisdiction: The agreement specifies that it is governed by Tennessee state laws and identifies the jurisdiction where any disputes would be resolved (usually a specific county or district court). Tennessee Security Agreements are essential in providing a legal framework for borrowing funds and granting security interest in assets. By clearly defining the rights and obligations of both parties involved, these agreements help protect the lender's interests and ensure the repayment of borrowed funds.