04 03 SECURITY AGREEMENT

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2024 Supplement)

04-03 SECURITY AGREEMENT

Replace Form 04-03 from the main volume with the following:

PLEDGE AND SECURITY AGREEMENT

THIS PLEDGE AND SECURITY AGREEMENT ("Agreement") is entered into as of this [date] day of [month, year], by [DEBTOR NAME], an Arkansas [entity type] (the "Debtor"), to and in favor of [LENDER NAME], an Arkansas [entity type] ("Lender"), in order to induce Lender to extend or continue credit to Debtor, pursuant to the provisions of that $[loan amount] PROMISSORY NOTE dated as of even date herewith (the "Note"). In consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Debtor hereby represents, warrants, covenants and agrees to the following:

1. Grant of Security Interest. Debtor hereby collaterally assigns, transfers and pledges to Lender, and grants to Lender a first and prior security interest in, all of Debtor's right, title and interest in and to that personal, intangible and other property which is more fully described on EXHIBIT A attached hereto, whether now existing or hereafter acquired, along with all proceeds associated therewith (collectively, the "Property"). Debtor hereby authorizes Lender to file of record all UCC financing statements and continuation statements that might be required to perfect Lender's security interest in the Property, if applicable.

2. Obligations Secured. The obligations secured hereby are the payment and performance of Borrower's obligations set forth in the Note (the "Obligations"). All capitalized terms used herein but not otherwise defined shall have the meaning given to them in the Note.

3. Termination. This Agreement shall terminate upon the payment and performance in full of all of the Obligations, including without limitation the payment of all indebtedness of Debtor to Lender existing or committed by Lender at the time Lender receives written notice of withdrawal of this Agreement by Debtor.

4. Warranties of Debtor. Debtor represents and warrants: (i) that Debtor is the owner or has control of the Property; (ii) that Debtor has the right to pledge or grant a security interest in the Property; (iii) that the Property is genuine, free from liens, adverse claims, setoffs, default, repayment, defenses and conditions precedent of any kind or character except prior liens in favor of Lender; and (iv) that the security interest in the Property granted to Lender hereby is a first and prior security interest and that Debtor has not, and will not, grant or suffer another security interest in or encumbrance against the Property except in favor of the Lender. Provided, however, the filing of a mechanic's or materialman's statutory lien shall not constitute an Event of Default during the pendency of Debtor contesting such lien and its underlying claim in any applicable litigation. In the event that a court or other applicable authority determines such lien...