Security Agreement

SECURITY AGREEMENT

Before you use this: This form uses Texas Article 9 as an illustration of the issues to check; complete it under the current law of the selected jurisdiction. Select the state, debtor location, actual debt, collateral classes and third-party interests. Complete the collateral and perfection schedules under current law for each class before filing or claiming priority. Check consent, title, consumer, real-property, digital-asset and bankruptcy overlays where the transaction actually involves them.

This Security Agreement is made on [DATE] by [DEBTOR EXACT LEGAL NAME, ORGANIZATION TYPE, JURISDICTION AND ADDRESS] (“Debtor”) and [SECURED PARTY EXACT LEGAL NAME AND ADDRESS] (“Secured Party”). The borrower or obligor, if different, is [NAME AND CAPACITY].

Secured debt and grant

1. Secured Debt. The only obligations secured are the unpaid amounts actually owed under [IDENTIFIED NOTE OR CREDIT AGREEMENT, DATE, PARTIES, ORIGINAL PRINCIPAL AND EXHIBIT A], including the interest and charges expressly due under that document and permitted by the selected law, after all payments and collateral recoveries are credited. A new advance, other account, refinancing, guaranty or other person's debt is excluded unless Debtor signs an amendment identifying it. Identified future advances, if any: [TERMS / NONE]. Excluded obligations: [DESCRIPTION / NONE].

2. Exchange. In exchange for this grant, Secured Party agrees to [SPECIFIC ADVANCE, EXTENSION OR OTHER ACCOMMODATION] on [DATE OR CONDITION]. If the stated accommodation does not occur, [AGREED CONSEQUENCE].

3. Grant. Debtor grants Secured Party a security interest in Debtor's rights in the property specifically identified in Schedule 1, including its identifiable proceeds as permitted by the selected law. No property of a non-signer is granted. The description in this agreement controls the grant; a broader description used in a financing statement does not enlarge it. After-acquired property, products, accessions, replacements and supporting rights are included only if selected and described in Schedule 1. A commercial tort claim must be described by its existing facts and parties; a category name alone is not the grant. The grant secures the defined Secured Debt only.

4. Debtor states, based on the records in Schedule 2, that it has the rights in the listed collateral described there and has disclosed each known lien, co-owner, lease, restriction, title record and location. Any required third-party consent, issuer approval or government record is [ATTACHED / LISTED AS AN UNMET CONDITION]; this agreement does not bind an absent third party. Debtor states that the identity, organization, collateral-location and existing-interest entries in Schedules 2 and 3 are accurate subject to [LISTED EXCEPTIONS].

Possession, records and completion actions

5. Until an uncured default, Debtor may possess and use the collateral for [SPECIFIED ORDINARY PURPOSE], subject to [EXACT RESTRICTION OR NONE]. Debtor shall keep [AGREED INSURANCE, MAINTENANCE AND RECORDS WITH AMOUNTS / STANDARDS] and give notice of [EXACT MATERIAL CHANGE] within [NUMBER] days. Ordinary-course sales or replacements are [PERMITTED ON TERMS / PROHIBITED AS DEFINED]; sale proceeds are handled [ACCOUNT / APPLICATION].

6. The parties shall complete Schedule 3 for each class. It identifies the selected state's law, debtor location, collateral classification, filing office, financing statement description, possession or control person, title action, consent and search result. Secured Party may file only an authorized financing statement in the verified debtor name and filing office. Neither this grant nor any one filing is represented as establishing perfection or first priority for every asset. Debtor authorizes filings describing only the granted collateral and its legally included proceeds; a materially broader amendment requires a separate authenticated authorization or another basis under the selected law.

7. Secured Party shall record documents actually delivered, filing acknowledgments, searches and control confirmations in Schedule 3. A change in Debtor's legal name, location, organization or collateral classification will be addressed by [NOTICE PERIOD AND RESPONSIBLE PARTY] and any timely action required under the selected law. Record searches, intercreditor arrangements, filing continuation, control renewal and title actions in Schedule 3.

Default, enforcement and release

8. A default occurs when (a) an amount due on the Secured Debt remains unpaid after the notice and cure period in [IDENTIFIED CREDIT DOCUMENT], or (b) Debtor materially breaches a specified covenant in this Agreement and fails to cure within [NUMBER] days after a written description of the breach. Filing bankruptcy, a change in value, or default on a different loan is not independently a default under this agreement.

9. After an uncured default, Secured Party may seek enforcement against the listed collateral only through the selected state's current procedures and any applicable court or bankruptcy order. Secured Party must give required notices, use a permitted repossession or disposition method, account for proceeds and return any surplus to the person entitled to it. No entry onto every premises, forfeiture, preapproved sale price, universal notice period or automatic setoff is agreed. The default and notice schedule identifies each recipient, method, deadline, source and delivery record. Acceptance of collateral in satisfaction requires the selected law's consent and notice process; it is not automatic. Secured Party will credit net recoveries against the same Secured Debt and give Debtor an itemized accounting.

10. Any deficiency is owed only by a person already liable for the Secured Debt and only to the extent permitted after all required credits and limitations. This agreement is not a personal guaranty by a different collateral owner. Documented reasonable enforcement expenses may be included only if the identified debt instrument and selected law allow them; no separate indemnity or collateral-value cap on Secured Party's wrongdoing is created.

11. When the Secured Debt is fully paid and the identified credit commitment ends, Secured Party shall within [NUMBER] business days return held collateral records, release any control arrangement, and execute the termination or title documents required for the interests created under this Agreement, at [AGREED COST ALLOCATION].

Other terms and signatures

12. Notices go to the parties' addresses above by [TRACKED MAIL / PERSONAL DELIVERY / AGREED EMAIL], effective on [ACTUAL RECEIPT / SPECIFIED AGREED EVENT]. Amendments require both parties' signatures. Assignment of this security interest follows only the identified Secured Debt, subject to the same credits and defenses, with notice to Debtor.

13. [STATE] law governs this Agreement, subject to mandatory law for the relevant collateral and filing jurisdiction. The parties select [COUNTY, STATE] courts only if jurisdiction exists. This form contains no arbitration, jury waiver, automatic injunction or blanket power of attorney. If a term cannot be enforced, the remainder operates only without enlarging the grant or Secured Debt. Counterpart and electronic signing methods must be selected consistently with applicable law.

Debtor authorized signature: [SIGNATURE / NAME / TITLE / DATE]

Secured Party authorized signature: [SIGNATURE / NAME / TITLE / DATE]

Additional collateral owner or grantor, if any: [LEGAL NAME / CAPACITY / SIGNATURE / DATE]

Schedule 1 — Exact collateral

Complete only the selected rows with a description that identifies the property. An unchecked category label, blank, or unattached schedule is not a grant. An “all assets” label alone is not the operative description.

After-acquired property: ☐ None ☐ Selected classes: [DESCRIPTION]. Products and accessions: ☐ None ☐ Selected: [DESCRIPTION]. Replacements and substitutions: ☐ None ☐ Selected: [DESCRIPTION]. Proceeds: [IDENTIFIABLE PROCEEDS INCLUDED / LIMITED AS DESCRIBED].

Excluded property and effective restrictions: [SPECIFIC PROPERTY / CONSENT / RESTRICTION / NONE]. Do not assume a restriction is effective against the security interest without checking the selected law and third-party agreement.

Schedule 2 — Known interests and restrictions

Schedule 3 — Completion and priority record

Debtor name evidence: [FORMATION / GOVERNMENT / TRUST RECORD]. Debtor location analysis: [STATE AND BASIS]. Search provider and cutoff date: [NAME / DATE]. Search findings and resolutions: [DESCRIPTION]. Priority conclusion and qualifications: [DESCRIPTION / NO CONCLUSION].

Default and disposition notice record:

Waiver or special-risk rider: [NONE / SEPARATELY AUTHENTICATED TEXT AND ENFORCEABILITY REVIEW]. No advance waiver of a mandatory post-default right is created by this blank.

Closing evidence: ☐ Party authority ☐ Debt instrument ☐ Collateral descriptions ☐ Rights and restrictions ☐ Searches ☐ Consents ☐ Filing or control evidence ☐ Monitoring calendar ☐ Counsel approval.

Exhibit A: [ATTACH THE IDENTIFIED DEBT INSTRUMENT]