Appendix H: Example of Security Agreement

• Author: Gregory Germain
• Pages: 534-537

534

APPENDIX H: Example of Security Agreement

SECURITY AGREEMENT

1. Grant. On this 12th day of January, 2012, JOE SCHMOE, with his principal place of business

at EI White Hall, Suite 144(i), Syracuse, New York 13244-1030 (hereinafter called "Debtor"),

for valuable consideration, receipt whereof is acknowledged, hereby grants to BIG HEARTED

BANK, a New York corporation with its principal place of business at 1 Erie Street, Syracuse,

New York 10030 (hereinafter called "Secured Party") a security interest in, and mortgages to

Secured Party, the following described property and interests in property of Debtor (hereinafter

called the "Collateral"):

ALL INVENTORY AND EQUIPMENT, INCLUDING LAW

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to secure payment of the following obligations of Debtor to Secured Party (all hereinafter called

the "Obligations"):

All obligations and liabilities of Debtor to Secured Party

(including without limitation all debts, claims and indebtedness)

whether primary, secondary, direct, contingent, fixed or

otherwise, heretofore, now and/or from time to time hereafter

owing, due or payable, however evidenced, created, incurred,

acquired or owing and however arising, or by oral agreement or

operation of law or otherwise.

2. Warranties and Covenants of Debtor. Debtor warrants and covenants that:

2.1. Debtor is the owner of the Collateral free from any adverse lien, security interest or

encumbrance; and Debtor will defend the Collateral against all claims and demands of all

persons at any time claiming the same or any interest therein.

2.2. No Financing Statement covering any of the Collateral or an y proceeds thereof is on file

in any public office. The Debtor shall immediately notify the Secured Party in writing of

any change in name, address, identity or corporate structure from that shown in this

Agreement and shall also upon demand furnish to the Secured Party such further

information and shall execute and deliver to Secured Party such financing statements and

other documents in form satisfactory to Secured Party and shall do all such acts and things

as Secured Party may at any time or from time to time reasonably request or as may be

necessary or appropriate to establish and maintain a perfected security interest in the

Collateral as security for the Obligations, subject to no adverse liens or encumbrances;

and Debtor will pay the cost of filing the same or filing or recording this agreement in all

public offices wherever filing or recording is deemed by Secured Party to be necessary or

desirable. A carbon, photographic or other reproduction of this agreement is sufficient as

a financing statement.

2.3. Debtor will not sell or offer to sell, assign, pledge, lease or otherwise transfer or encumber

the Collateral or any interest therein, without the prior written consent of Secured Party.

2.4. Debtor shall keep the Collateral at all times insured against risks of loss or damage by fire

(including so-called extended coverage), theft and such other casualties as Secured Party