[{"data":1,"prerenderedAt":528},["ShallowReactive",2],{"document-collateral-agreement-D13257":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":183,"customdescription":6,"mdFm":184,"mdProseHtml":527},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"COLLATERAL AGREEMENT This Collateral Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [NAME OF PLEDGOR] (the \"Pledgor\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF COLLATERAL AGENT] (the \"Collateral Agent\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Collectively, the Pledgor and Collateral Agent shall be referred to as the \"Parties.\" WHEREAS, the Pledgor and [NAME] (the \"Pledgee\") have entered into certain agreements pursuant to which the Pledgor has agreed to pledge certain property as Collateral (the \"Collateral\") as described in Exhibit A to the Pledgee to secure the Pledgor's Obligations to the Pledgee; WHEREAS, the Pledgor and the Pledgee have requested the Collateral Agent to hold the property pledged as Collateral and to perform certain other functions as more fully described herein; NOW, THEREFORE, the Parties agree as follows: APPOINTMENT AND ACCEPTANCE The Pledgor hereby appoints [NAME] as its Collateral Agent for the purposes set forth herein, and the Collateral Agent hereby accepts such appointment, subject to the terms and conditions set forth herein. COLLATERAL AND DELIVERY As security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Loan (other than contingent obligations), the Pledgor and Pledgee hereby confirm the pledge and grant to the Collateral Agent, its successors and permitted assigns of the security interest, for the ratable benefit of the Loan; and as security for the payment or performance, as the case may be, in full when due (whether at stated maturity, by acceleration or otherwise) of the Obligations (other than contingent obligations), the Pledgor hereby pledges and grants to the Collateral Agent, its successors and permitted assigns, for the ratable benefit, a security interest in all right, title or interest in or to any and all of the following assets and properties in each case, whether tangible or intangible, wherever located, and now owned or at any time hereafter acquired by the Pledgor (but excluding any Excluded Collateral), collectively, the \"Collateral.\" The description and details of the Collateral are mentioned in Exhibit A, which is attached to this Agreement. The Collateral shall be delivered to the Collateral Agent on the effective date and the receipt of the Collateral shall be acknowledged by the Collateral Agent. LOAN AND REPAYMENT This Loan is in the amount of [AMOUNT] at [SPECIFY THE RATE OF INTEREST] % interest per year, compounded for a period of [NUMBER OF YEARS] years. Payments of principal and interest in the amount of [AMOUNT], payable on the [SPECIFY DAY] day of each month, shall begin on [DATE], and the Loan shall be fully repaid no later than [DATE]. The Pledgor may prepay any portion or all of this Loan at any time without penalty. Any amounts paid in excess of the regular payment due shall be applied to reduce the principal amount of the Loan. DUTIES OF COLLATERAL AGENT Standard. The Collateral Agent undertakes to perform without gross negligence only such duties as are expressly set forth herein and no duties shall be implied. The Collateral Agent shall have no liability under and no duty to inquire as to the provisions of any law, regulation or agreement other than this Collateral Agreement. The Collateral Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document. The Collateral Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that the Collateral Agent's willful misconduct was the primary cause of any loss to any person. Reliance. The Collateral Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper Party or Parties. The Collateral Agent shall not incur any liability for following the instructions herein expressly provided for, or written instructions given by the Pledgor. Agents and Attorneys. The Collateral Agent may execute any of its powers and perform any of its duties hereunder directly or through agents or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Collateral Agent shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons. Disputes. In the event that the Collateral Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands from any person which, in its opinion, conflict with any of the provisions of this Collateral Agreement or the directions of the Pledgor, it shall be entitled to refrain from taking any action and its sole Obligation shall be to keep safely all property held in Collateral until it shall be directed otherwise in writing by the Pledgee or by a final order or judgment of a court of competent jurisdiction. Consequential Damages. Anything in this Collateral Agreement to the contrary notwithstanding, in no event shall the Collateral Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. RESIGNATION AND REMOVAL The Collateral Agent may resign and be discharged from its duties or Obligations hereunder by giving [NUMBER OF DAYS] days' advance notice of such resignation, specifying a date when such resignation shall take effect. The Collateral Agent may be removed and discharged from its duties or Obligations hereunder by the Pledgor giving [NUMBER OF DAYS] days' advance notice of such removal and specifying a date when such removal shall take effect. If a successor as Collateral Agent shall be appointed and accept such appointment prior to the effective date of such resignation or discharge (the \"Effective Date\"), the Collateral Agent shall transfer the Collateral Fund to the successor, together with its information as to subaccounts. If no such successor is so appointed, the Collateral Agent shall turn over the Collateral Fund and its information about subaccounts to the Pledgor on the Effective Date. In either case, the Collateral Agent shall have the right to withhold and pay to itself from the Collateral Fund an amount equal to any amount due and owing to the Collateral Agent, plus any costs and expenses the Collateral Agent shall reasonably believe may be incurred by the Collateral Agent in connection with its resignation or removal. SUCCESSION UPON MERGER, ETC. OF COLLATERAL AGENT Any corporation into which the Collateral Agent in its individual capacity may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Collateral Agent in its individual capacity shall be a party, or any corporation to which substantially all the corporate trust business of the Collateral Agent in its individual capacity may be transferred, shall be the Collateral Agent under this Collateral Agreement without further act. 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Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":95,"description":6},"loan agreement",[97,100,103],{"label":98,"url":99},"Finance & Accounting","finance-accounting",{"label":101,"url":102},"Business Loans","business-loan",{"label":101,"url":102},"/template/loan-agreement-D417",{"description":106,"descriptionCustom":6,"label":107,"pages":108,"size":109,"extension":10,"preview":110,"thumb":111,"svgFrame":112,"seoMetadata":113,"parents":114,"keywords":120,"url":121},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[115,116,117],{"label":98,"url":99},{"label":101,"url":102},{"label":118,"url":119},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":123,"descriptionCustom":6,"label":124,"pages":90,"size":9,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":130,"keywords":129,"url":135},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":129,"description":6},"personal guarantee",[131,132,133],{"label":98,"url":99},{"label":101,"url":102},{"label":36,"url":134},"guaranties-collateral","/template/personal-guarantee-D405",{"description":137,"descriptionCustom":6,"label":138,"pages":90,"size":9,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":149,"url":150},"COMPENSATION AGREEMENT This Compensation Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [EMPLOYER NAME], (the \"Employer\") a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [YOUR COMPLETE ADDRESS] AND: [EMPLOYEE NAME], (the \"Employee\"), an individual with their main address located at: [COMPLETE ADDRESS] Collectively, the Employer and Employee shall be referred to as the \"Parties.\" WHEREAS, the Employer has offered employment to the Employee in the capacity of [CAPACITY OF EMPLOYEE] in the Company for Compensation, as mentioned in this Agreement; WHEREAS, the Employee is desirous of and is willing to be employed by the Employer in such capacity; NOW, THEREFORE, the Parties agree as follows: DEFINITIONS \"Agreement\" and \"this Agreement\" shall mean this Agreement and all attached annexures and instruments supplemental to or amending, modifying or confirming this Agreement in accordance with the provisions of this Agreement. \"Employer\" shall have the meaning given to such expression in paragraph 1 of the introduction of the Parties. \"Employee\" means a person wholly or principally employed in, or in connection with the Company, which shall include independent contractors. \"Confidential Information\" includes any trade/business secret, technical knowledge or know-how, financial information, plans, customer lists, pricing policies and procedures, marketing data, research and development data, product data, any formula pattern or compilation of information used in the business of the Employer or any clients thereof or their affairs. \"Intellectual Property\" means all intellectual and industrial property and all rights therein including, without limiting the generality of the foregoing, all inventions (whether patentable or not, and whether or not patent protection has been applied for or granted), improvements, developments, discoveries, proprietary information, trademarks, trade mark applications, trade names, websites, Internet domain names, logos, slogans, know-how, trade secrets, processes, designs (whether or not registerable and whether or not design rights subsist in them), works in which copyright may subsist (including computer software and preparatory and design materials therefor). \"Month\" means a calendar month. \"Working Day\" means any day excluding Saturdays, Sundays and statutory holidays. \"Customer(s)\" / \"Clients\" shall mean any individual, corporation, partnership, business or other entity, whether for-profit or not-for-profit, whose existence and business is known to the Employee as a result of the Employee's access during its employment to the Employer's business information, Confidential Information, customer lists, customer account information or any other source of information. APPOINTMENT The Employer hereby offers employment to the Employee to serve the Employer in the capacity of [CAPACITY OF EMPLOYEE] with effect from [INSERT DATE] (the \"Effective Date\"). The Employer may conduct a background and a medical check on the Employee, who hereby agrees and assents to the aforesaid offer being made subject to the satisfactory completion of the same. The Employee shall perform their duties at [INSERT ADDRESS]. The Employee warrants that, by entering into this Agreement and performing obligations hereunder, the Employee will not be in breach of any terms or obligations under any subsisting agreement, written or oral, with any third party. Notice Period. The Employee will be required to give [NUMBER OF MONTHS] months' notice or salary thereof in case the Employee decides to leave the Employer's services. In the event of the Employee having any incomplete assignment, the Employer will have the discretion to relieve the Employee only at the end of the [NUMBER OF MONTHS] months' notice period. Similarly, the Employer can terminate the Employee's services by giving the Employee [NUMBER OF MONTHS] months' notice or salary thereof. The Employer may terminate the Employee's services immediately on disciplinary grounds. Standard Office Hours. The Employer's core hours of operation are from [OFFICE HOURS]. DUTIES AND ROLES The Employee's job description and general responsibilities shall be as set forth in \"Annexure A\" and shall also include such further duties and responsibilities as the Employer may delegate from time to time. The roles and duties of the Employee are not limited to the ones listed in Annexure A and the same can be modified or altered as per the decision of the Employer. The Employee shall perform all such duties as may be delegated by the Employer and comply with all such directions as the officers of the Employer and/or his/her nominated deputies may from time to time assign or give to the Employee. The Employee shall, during the term of this Agreement (unless prevented by ill health or accident or as otherwise agreed by the Employer in writing), devote the entire time and attention and abilities to the employment with the Employer and shall use best endeavours to promote and protect the Employer's general interests and the welfare of the Employer. The Parties shall fulfill all their obligations by being compliant with the applicable laws. COMPENSATION The Employee shall be paid [SPECIFY SALARY] on a monthly basis. The said salary shall be paid on [DAY] day of each month to the Employee by the Employer. The Employee's salary shall be paid through [MODE OF TRANSFER]. The Employee's salary and other benefits shall be subject to compulsory statutory and other deductions including tax and other contributions that are to be held by the Employee in STATE/PROVINCE]. Bonus. The Employer may, but shall not be required to pay the Employee an annual performance bonus. The amount of any annual performance bonus to be paid to the Employee shall be determined at the absolute discretion of the Employer. If the Employee becomes disabled during the term of the Agreement, all Compensation due him as provided for in this paragraph of this Agreement shall continue under the same terms and at the same rates as existed on the date of such disability. If such disability continues for a period of [NUMBER OF MONTHS] consecutive months, the Employer, at its option, may thereafter, upon thirty (30) days' written notice to the Employee, terminate this Agreement. In the event of termination because of disability, the Employee shall be entitled to an amount equal to [NUMBER OF MONTHS] months of his then current annual salary. NON-DISCLOSURE, NON-SOLICITATION AND CONFIDENTIALITY As Confidential Information will from time to time become known to the Employee, the Employer considers and the Employee agrees that the restraints set forth in this Agreement (on which the Employee has had the opportunity to take independent legal advice) are necessary for the reasonable protection by the Employer of its business or the business of the Company, the clients thereof or their respective affairs. The Employee shall not at any time, either during the continuance of or after the termination of employment with the Employer, use, disclose or communicate to any person whatsoever any Confidential Information which the Employee has or of which he may have become possessed during the Employee's employment with the Employer, nor shall supply the names or addresses of any clients, customers, vendors or agents of the Employer to any person except as authorised by the Employer or as ordered by a court of competent jurisdiction. The Employee consents to the Employer holding and processing, both electronically and manually, the data it collects in the course of his employment, for the purpose of the Employer's administration and management of its employees and its business, and to comply with applicable procedures, laws and regulations. ","Compensation Agreement","https://templates.business-in-a-box.com/imgs/1000px/compensation-agreement-D13258.png","https://templates.business-in-a-box.com/imgs/250px/13258.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13258.xml",{"title":143,"description":6},"compensation agreement",[145,147],{"label":18,"url":146},"human-resources",{"label":21,"url":148},"company-policies","security agreement","/template/security-agreement-D13258",{"description":152,"descriptionCustom":6,"label":153,"pages":154,"size":9,"extension":10,"preview":155,"thumb":156,"svgFrame":157,"seoMetadata":158,"parents":160,"keywords":159,"url":165},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Demand to Pay Promissory Note Dear [Contact name], This is to notify you that payment is past due under your Promissory Note (the \"Note\") dated [DATE]. The following payments have not been received: Payment Due Date Amount of Principal Due Amount of Interest Due Late Charge Thus, as of the date of this letter, you are in arrears in the total amount of [Amount OF arrears].","Demand to Pay Promissory Note","1","https://templates.business-in-a-box.com/imgs/1000px/demand-to-pay-promissory-note-D207.png","https://templates.business-in-a-box.com/imgs/250px/207.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#207.xml",{"title":159,"description":6},"demand to pay promissory note",[161,164],{"label":162,"url":163},"Credit & Collection","credit-collection",{"label":162,"url":163},"/template/demand-to-pay-promissory-note-D207",{"description":167,"descriptionCustom":6,"label":168,"pages":169,"size":9,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":175,"keywords":174,"url":182},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":174,"description":6},"secured lumpsum promissory note agreement",[176,179],{"label":177,"url":178},"Business Plan Kit","business-plan-kit",{"label":180,"url":181},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",false,{"seo":185,"reviewer":197,"legal_disclaimer":201,"quick_facts":202,"at_a_glance":204,"personas":208,"variants":233,"glossary":260,"clauses":294,"how_to_fill":345,"common_mistakes":386,"faqs":411,"industries":439,"comparisons":456,"diy_vs_lawyer":470,"jurisdictions":483,"related_template_ids_curated":504,"schema":513,"classification":514},{"meta_title":186,"meta_description":187,"primary_keyword":188,"secondary_keywords":189},"Collateral Agreement Template (Free Word)","Free collateral agreement template to pledge assets as security for a loan. Trusted by companies in USA, Canada, UK, Australia, and 190+ countries. Free Word and PDF download.","collateral agreement template",[190,191,192,193,194,195,196],"collateral agreement template word","collateral agreement template free","loan collateral agreement","security interest agreement","pledge agreement template","collateral pledge agreement","secured loan agreement template",{"name":198,"credential":199,"reviewed_date":200},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":203,"legal_review_recommended":201,"signature_required":201,"notarization_required":183},"advanced",{"what_it_is":205,"when_you_need_it":206,"whats_inside":207},"A Collateral Agreement is a legally binding security document under which a borrower pledges one or more specified assets to a lender as security for a loan or other financial obligation. This free Word download lets you describe the collateral, attach the security interest, and define the lender's remedies on default — ready to edit online and export as PDF for signing.\n","Use it whenever a lender requires a borrower to back a loan with a specific asset — such as equipment, inventory, receivables, real property, or intellectual property — before funds are advanced or credit is extended.\n","Parties and recitals, a precise description of the pledged collateral, grant of security interest, representations and warranties, borrower obligations, events of default, lender remedies, release conditions, and governing law.\n",[209,213,217,221,225,229],{"title":210,"use_case":211,"icon_asset_id":212},"Small business owners","Pledging equipment or inventory to secure a working-capital loan","persona-small-business-owner",{"title":214,"use_case":215,"icon_asset_id":216},"Commercial lenders","Documenting a security interest in borrower assets before advancing funds","persona-lender",{"title":218,"use_case":219,"icon_asset_id":220},"Startup founders","Securing a revenue-based or asset-backed financing facility","persona-startup-founder",{"title":222,"use_case":223,"icon_asset_id":224},"Real estate investors","Pledging property or rental income as collateral for bridge financing","persona-real-estate-investor",{"title":226,"use_case":227,"icon_asset_id":228},"CFOs and finance directors","Formalizing inter-company loans secured by subsidiary assets","persona-cfo",{"title":230,"use_case":231,"icon_asset_id":232},"Private lenders and investors","Protecting capital advanced to a borrower by attaching a named security interest","persona-private-lender",[234,238,242,246,250,253,256],{"situation":235,"recommended_template":236,"slug":237},"Securing a business loan with movable personal property (equipment, inventory, receivables)","Collateral Agreement (UCC Security Agreement)","collateral-agreement-D13257",{"situation":239,"recommended_template":240,"slug":241},"Pledging publicly traded shares or investment securities as collateral","Stock Pledge Agreement","pledge-of-shares-of-stock-D407",{"situation":243,"recommended_template":244,"slug":245},"Securing a real estate loan with a specific property","Mortgage or Deed of Trust","mortgage-deed-D988",{"situation":247,"recommended_template":248,"slug":249},"Pledging all present and future assets as a floating charge","General Security Agreement","security-agreement-D915",{"situation":251,"recommended_template":89,"slug":252},"Documenting the underlying loan terms alongside the security interest","loan-agreement-D417",{"situation":254,"recommended_template":124,"slug":255},"Guaranteeing a third-party obligation without pledging a specific asset","personal-guarantee-D405",{"situation":257,"recommended_template":258,"slug":259},"Securing payment under a promissory note with identified collateral","Secured Promissory Note","secured-lumpsum-promissory-note-agreement-D13041",[261,264,267,270,273,276,279,282,285,288,291],{"term":262,"definition":263},"Security Interest","A creditor's legal right in a debtor's property that serves as collateral for the repayment of a debt or other obligation.",{"term":265,"definition":266},"Collateral","The specific asset or assets pledged by a borrower to secure a loan, which the lender may seize or sell if the borrower defaults.",{"term":268,"definition":269},"Attachment","The process by which a security interest becomes enforceable against the debtor — requiring a security agreement, value given, and the debtor having rights in the collateral.",{"term":271,"definition":272},"Perfection","The step that makes a security interest enforceable against third parties, typically achieved by filing a UCC-1 financing statement or taking possession of the collateral.",{"term":274,"definition":275},"UCC-1 Financing Statement","A public notice document filed with a state agency under Article 9 of the Uniform Commercial Code to perfect a lender's security interest in personal property.",{"term":277,"definition":278},"Default","A borrower's failure to meet a defined condition — such as missing a payment, breaching a covenant, or becoming insolvent — that triggers the lender's remedies under the agreement.",{"term":280,"definition":281},"Foreclosure / Enforcement","The legal process by which a secured lender takes possession of and sells pledged collateral to recover the outstanding debt after a default.",{"term":283,"definition":284},"Release of Security Interest","A lender's formal relinquishment of its claim over the collateral, typically issued when the underlying debt has been repaid in full.",{"term":286,"definition":287},"After-Acquired Property","A clause extending the security interest to cover assets the borrower acquires after the agreement is signed, not just assets owned at signing.",{"term":289,"definition":290},"Floating Charge","A security interest that applies to a changing pool of assets — such as inventory or receivables — rather than specific, identified items.",{"term":292,"definition":293},"Subordination","An agreement by which one creditor's security interest is ranked below another's, determining the order of repayment from collateral proceeds.",[295,300,305,310,315,320,325,330,335,340],{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Parties and recitals","Identifies the borrower (grantor) and lender (secured party) as legal entities and states the purpose — typically securing performance under a named loan agreement or promissory note.","This Collateral Agreement ('Agreement') is entered into as of [DATE] between [BORROWER LEGAL NAME], a [STATE] [ENTITY TYPE] ('Grantor'), and [LENDER LEGAL NAME], a [STATE] [ENTITY TYPE] ('Secured Party'), to secure all obligations under the Loan Agreement dated [DATE].","Using trade names instead of registered legal entity names. Enforcement actions and UCC filings must reference the exact legal name on the debtor's government-issued records or the filing may be seriously misleading and ineffective.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Description of collateral","Specifies exactly which assets are pledged — by type, serial number, account number, or category — and whether after-acquired property of the same type is included.","The Collateral consists of all of Grantor's right, title, and interest in and to: (a) the equipment listed in Schedule A; (b) all accounts receivable arising from Grantor's business; and (c) all proceeds and products of the foregoing, whether now owned or hereafter acquired.","Using overly vague descriptions such as 'all business assets.' Courts and UCC filing offices require a description that reasonably identifies the collateral — a description so broad it covers everything may be challenged as a disguised attempt to take a general lien without proper disclosure.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Grant of security interest","The operative clause in which the borrower formally grants the lender a security interest in the described collateral to secure the stated obligations.","Grantor hereby grants to Secured Party a continuing security interest in the Collateral to secure the prompt and complete payment and performance of all Obligations, as defined herein.","Omitting the word 'continuing' — without it, the security interest may be read as terminated once an initial debt is repaid, leaving later advances unsecured even if the same collateral covers them.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"Representations and warranties","Statements by the borrower confirming ownership of the collateral, absence of prior liens, authority to grant the security interest, and accuracy of the asset description.","Grantor represents and warrants that: (a) Grantor has good and marketable title to the Collateral, free and clear of all liens except as disclosed in Schedule B; (b) Grantor has full authority to grant the security interest herein; and (c) the Collateral description is accurate and complete.","Failing to schedule existing prior liens. A borrower who does not disclose a prior security interest is in breach at signing, and the lender's interest may be junior to an undisclosed creditor it never knew existed.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"Borrower obligations and covenants","Ongoing duties of the borrower while the security interest is in place — maintaining and insuring the collateral, not selling or encumbering it, and giving the lender access for inspection.","Grantor shall: (a) maintain the Collateral in good condition and repair; (b) keep the Collateral insured for full replacement value, naming Secured Party as loss payee; (c) not sell, transfer, or encumber the Collateral without Secured Party's prior written consent; and (d) permit Secured Party to inspect the Collateral upon [48 hours'] notice.","Not requiring the lender to be named as loss payee on the borrower's insurance policy. If collateral is destroyed and an insurance payout goes directly to the borrower, the lender loses its practical security before default remedies can be triggered.",{"name":321,"plain_english":322,"sample_language":323,"common_mistake":324},"Events of default","Defines the specific circumstances that constitute a default — non-payment, breach of covenant, insolvency, or material impairment of the collateral — and may include a cure period.","Each of the following constitutes an Event of Default: (a) failure to pay any Obligation within [10] days of its due date; (b) material breach of any covenant herein not cured within [30] days of written notice; (c) Grantor's insolvency, bankruptcy filing, or appointment of a receiver; (d) loss, destruction, or material impairment of the Collateral not covered by insurance.","Omitting a cure period for technical or non-payment breaches. Without one, a minor administrative lapse triggers immediate default remedies — courts may view aggressive enforcement on a trivial breach as bad faith and limit the lender's recovery.",{"name":326,"plain_english":327,"sample_language":328,"common_mistake":329},"Lender remedies on default","Sets out what the lender may do after an event of default — taking possession of the collateral, selling it, applying proceeds to the debt, and pursuing any deficiency balance.","Upon an Event of Default, Secured Party may: (a) declare all Obligations immediately due and payable; (b) take possession of the Collateral with or without judicial process to the extent permitted by applicable law; (c) sell, lease, or otherwise dispose of the Collateral in a commercially reasonable manner; and (d) apply net proceeds to the Obligations, with any deficiency remaining the personal liability of Grantor.","Specifying a self-help repossession right without the qualifying phrase 'to the extent permitted by applicable law.' In some jurisdictions, self-help repossession without notice is prohibited, and a blanket authorization to take possession without this qualifier may be unenforceable and expose the lender to liability.",{"name":331,"plain_english":332,"sample_language":333,"common_mistake":334},"UCC filing and perfection authorization","Authorizes the lender to file UCC-1 financing statements and any continuation or amendment statements without further consent from the borrower.","Grantor authorizes Secured Party to file, in any jurisdiction Secured Party deems necessary, UCC financing statements and any amendments or continuations describing the Collateral, without Grantor's signature or further authorization.","Not including this authorization at all, requiring the borrower to sign every financing statement separately. A borrower who later refuses to sign a continuation statement can effectively extinguish the lender's perfected security interest when the initial five-year UCC filing lapses.",{"name":336,"plain_english":337,"sample_language":338,"common_mistake":339},"Release of security interest","States the conditions under which the lender will terminate the security interest and file a UCC-3 termination statement — typically full repayment of the secured obligations.","Upon payment in full of all Obligations and termination of all commitments to advance funds, Secured Party shall, within [30] days of Grantor's written request, file a UCC-3 termination statement and execute such other documents as Grantor reasonably requests to evidence the release of the security interest.","Leaving the release obligation open-ended with no deadline. Lenders who fail to file a timely termination statement after full repayment expose themselves to statutory damages under UCC Article 9 and equivalent provincial legislation.",{"name":341,"plain_english":342,"sample_language":343,"common_mistake":344},"Governing law and dispute resolution","Specifies which jurisdiction's law governs the agreement and how disputes are resolved — litigation, arbitration, or mediation — along with venue selection.","This Agreement is governed by the laws of [STATE / PROVINCE], without regard to conflicts-of-law principles. Any dispute shall be resolved exclusively in the state and federal courts located in [CITY, STATE], and each party irrevocably submits to such jurisdiction.","Choosing a governing law state that differs from the state where the collateral is located or the debtor is organized. UCC Article 9 perfection rules are determined by the debtor's location, not the contract's choice-of-law clause — a mismatch leads to filings in the wrong state and an unperfected security interest.",[346,351,356,361,366,371,376,381],{"step":347,"title":348,"description":349,"tip":350},1,"Identify the parties using exact legal entity names","Enter the borrower's and lender's full registered legal names — as they appear on state or provincial incorporation records — along with entity type and state of formation. Add principal business addresses for both.","Run a free search on your Secretary of State's business entity database to confirm the exact legal name before drafting. A name mismatch between the agreement and a UCC filing can render the financing statement seriously misleading.",{"step":352,"title":353,"description":354,"tip":355},2,"Reference the underlying loan or obligation precisely","Identify the specific debt being secured — the loan agreement, promissory note, or credit facility — by its title, date, and principal amount. If the collateral secures multiple obligations, list each one.","Include an 'all obligations' dragnet clause only if you intend the collateral to secure future advances. If the pledge is for a single defined loan, limit it explicitly to avoid unintended cross-collateralization.",{"step":357,"title":358,"description":359,"tip":360},3,"Describe the collateral with precision","List every pledged asset by type and, where applicable, serial number, account number, or VIN. For revolving pools (inventory, receivables), use category descriptions and include an after-acquired property clause. Attach detailed lists as Schedule A.","For equipment, pull the serial numbers from the asset register — not the invoice. Serial numbers on invoices are sometimes incorrect.",{"step":362,"title":363,"description":364,"tip":365},4,"Disclose any existing prior liens in Schedule B","Search the relevant UCC, PPSA, or Companies House register for existing filings against the borrower and list every prior lien in Schedule B. The borrower must warrant that the disclosure is complete.","Order a formal UCC lien search from the Secretary of State rather than relying on the borrower's representation — the search takes 24–48 hours and costs under $30.",{"step":367,"title":368,"description":369,"tip":370},5,"Complete the borrower covenants block","Specify the insurance coverage amount, the inspection notice period, and any permitted-transfer exceptions. Tailor the covenants to the collateral type — inventory covenants differ from equipment covenants.","Require the borrower to provide you with a certificate of insurance naming you as loss payee within five business days of signing, not at some future date.",{"step":372,"title":373,"description":374,"tip":375},6,"Set events of default and cure periods","Define each event of default precisely. Include payment default with a grace period of 5–10 days, covenant breach with a 30-day cure period after written notice, and automatic defaults for insolvency events with no cure period.","Distinguish between automatic defaults (insolvency, appointment of receiver) and defaults requiring notice and cure. Mixing them leads to ambiguity about when remedies actually become available.",{"step":377,"title":378,"description":379,"tip":380},7,"Execute the agreement and authorize the UCC filing","Have both parties sign the agreement before any funds are advanced. The borrower's signature on the agreement also serves as the authenticated record authorizing UCC financing statement filings under Revised Article 9.","File the UCC-1 on the same day as — or the day before — execution. Priority among competing creditors runs from the date of filing, not the date of signing.",{"step":382,"title":383,"description":384,"tip":385},8,"Perfect the security interest by filing a UCC-1","File a UCC-1 financing statement with the Secretary of State in the state where the debtor is organized (for entities) or resides (for individuals). Use the debtor's exact legal name. Set a calendar reminder to file a continuation statement before the five-year filing lapses.","A single character error in the debtor's name on the UCC-1 — even a missing comma — can make the filing seriously misleading and therefore ineffective against a bankruptcy trustee.",[387,391,395,399,403,407],{"mistake":388,"why_it_matters":389,"fix":390},"Filing the UCC-1 in the wrong state","Perfection rules under Revised UCC Article 9 are determined by the debtor's location — state of organization for entities — not the choice-of-law clause or the location of the collateral. A filing in the wrong state is unperfected and subordinate to later creditors who file correctly.","Confirm the debtor's state of organization from the certificate of formation before filing. For foreign entities registered in multiple states, file in the state of original organization, not the state of qualification.",{"mistake":392,"why_it_matters":393,"fix":394},"Using an inaccurate or insufficient collateral description","A description that does not reasonably identify the collateral — or one so vague it is effectively a supergeneric description of 'all assets' for a consumer transaction — fails the UCC Article 9 sufficiency standard and the security interest may not attach.","Describe collateral by specific type, category, or item. For equipment, include make, model, and serial number. For receivables, describe the class of accounts. Attach a detailed schedule if the list is long.",{"mistake":396,"why_it_matters":397,"fix":398},"Signing after funds are advanced","A security agreement signed after value is given may fail the attachment requirement in some structures, and a subsequent filing may be subject to a 90-day preference clawback in bankruptcy if the debtor files within that window.","Execute the collateral agreement and file the UCC-1 before — or simultaneously with — the advance of funds. For revolving credit, execute at closing before any draw.",{"mistake":400,"why_it_matters":401,"fix":402},"Not disclosing existing prior liens","A borrower who represents clear title while a prior security interest is on file is in immediate breach of warranty. The lender's security interest is junior to the undisclosed prior creditor, and the breach may not be discovered until default — when it is too late to recover.","Conduct an independent UCC lien search before signing and require the borrower to list all existing encumbrances in a schedule. Make the accuracy of that schedule a closing condition.",{"mistake":404,"why_it_matters":405,"fix":406},"Omitting the lender as loss payee on the borrower's insurance","If collateral is destroyed by fire, flood, or theft and the insurance proceeds go directly to the borrower, the lender loses its practical security. The borrower can spend the payout rather than replace or pay down the secured debt.","Require the borrower covenant to name the lender as loss payee on all casualty insurance covering the collateral, and obtain a certificate of insurance at closing confirming this endorsement is in place.",{"mistake":408,"why_it_matters":409,"fix":410},"Failing to file a UCC-3 termination after repayment","An active UCC filing against a borrower who has repaid the loan in full clouds the borrower's title and can block future financing. Under UCC §9-513, a lender who fails to file a termination within 20 days of a proper demand is liable for $500 plus actual damages.","Build a post-payoff checklist that triggers a UCC-3 termination filing and a written release letter within 30 days of final payment. Track open UCC filings in a tickler system with the lapse date.",[412,415,418,421,424,427,430,433,436],{"question":413,"answer":414},"What is a collateral agreement?","A collateral agreement is a security document under which a borrower (the grantor) pledges specific assets to a lender (the secured party) as security for a loan or other financial obligation. It names the collateral, attaches the lender's security interest, and sets out what the lender may do — including seizing and selling the assets — if the borrower defaults. It is also called a security agreement under UCC Article 9 in the United States.\n",{"question":416,"answer":417},"What is the difference between a collateral agreement and a loan agreement?","A loan agreement documents the terms of the debt — principal, interest rate, repayment schedule, and covenants. A collateral agreement is the security document that backs the loan by pledging specific assets as collateral. The two documents work together: the loan agreement creates the obligation; the collateral agreement gives the lender a legal claim over identified assets if that obligation is not met. Both should be signed at the same closing.\n",{"question":419,"answer":420},"What assets can be pledged as collateral?","Under UCC Article 9, almost any personal property can serve as collateral — equipment, inventory, accounts receivable, deposit accounts, investment securities, intellectual property licenses, and general intangibles. Real property (land and buildings) is governed by mortgage or deed-of-trust law, not UCC Article 9, and requires a separate instrument. The collateral agreement should describe the pledged asset category precisely enough that a third party could identify it.\n",{"question":422,"answer":423},"What does it mean to 'perfect' a security interest?","Perfection is the step that makes a security interest enforceable against third parties — including other creditors and a bankruptcy trustee. For most personal property in the US, perfection requires filing a UCC-1 financing statement with the Secretary of State in the state where the debtor is organized. Without perfection, the lender's interest is valid between the parties but loses priority to later creditors who do file, and may be avoided entirely in a bankruptcy.\n",{"question":425,"answer":426},"Do I need to file a UCC-1 financing statement for every collateral agreement?","For the security interest to be perfected against third parties and in bankruptcy, yes — a UCC-1 filing is required for most personal property collateral. Exceptions include security interests perfected by possession (such as pledged certificated securities or cash) and purchase-money security interests in consumer goods, which are automatically perfected without filing. For real property, the equivalent public notice is a mortgage or deed of trust recorded with the county recorder.\n",{"question":428,"answer":429},"What happens to the collateral if the borrower defaults?","After an event of default, the lender may — in most US states — take possession of the collateral without judicial process if it can do so without breaching the peace, then sell or lease the collateral in a commercially reasonable manner. Proceeds are applied first to the costs of enforcement, then to the outstanding debt. If proceeds are insufficient, the borrower typically remains liable for the deficiency balance. The lender must send reasonable notice of any public sale or the method and time of a private sale.\n",{"question":431,"answer":432},"Can a collateral agreement cover assets the borrower does not yet own?","Yes — an after-acquired property clause extends the security interest to assets the borrower acquires in the future that fall within the described collateral category. This is common for inventory and receivables financing, where the collateral pool changes daily. The security interest attaches automatically when the borrower acquires rights in a new asset of the covered type, without any additional documentation.\n",{"question":434,"answer":435},"Is a collateral agreement enforceable without notarization?","For personal property collateral under UCC Article 9, notarization is generally not required for the agreement itself to be enforceable between the parties. However, some states require notarization for UCC fixture filings covering personal property affixed to real estate, and real property mortgages typically require notarization for recordation. Consider consulting a lawyer to confirm requirements in the governing jurisdiction before signing.\n",{"question":437,"answer":438},"What is the difference between a collateral agreement and a personal guarantee?","A collateral agreement pledges a specific asset — the lender's recourse is limited to that asset on default. A personal guarantee makes an individual personally liable for the full debt, regardless of whether any asset was pledged. Lenders often require both: a collateral agreement for the asset-level security and a personal guarantee from the business owner to close any gap between the collateral's value and the outstanding loan balance.\n",[440,444,448,452],{"industry":441,"icon_asset_id":442,"specifics":443},"Commercial Lending","industry-fintech","Banks and credit unions use collateral agreements to secure term loans and revolving lines of credit with equipment, inventory, or receivables as the pledged collateral pool.",{"industry":445,"icon_asset_id":446,"specifics":447},"Manufacturing","industry-manufacturing","Manufacturers pledge specific machinery, production equipment, or raw-material inventory — often with serial-number schedules — to secure equipment financing or supplier credit facilities.",{"industry":449,"icon_asset_id":450,"specifics":451},"Real Estate and Construction","industry-construction","Developers pledge assignment of rents, construction equipment, or material inventory as secondary collateral alongside a primary mortgage when lenders require additional security.",{"industry":453,"icon_asset_id":454,"specifics":455},"Technology and SaaS","industry-saas","Tech companies pledge accounts receivable, software licenses, or intellectual property rights as collateral for revenue-based financing or venture debt facilities where physical assets are limited.",[457,460,463,466],{"vs":89,"vs_template_id":458,"summary":459},"loan-agreement-D178","A loan agreement establishes the terms of the debt — amount, interest rate, repayment schedule, and financial covenants. A collateral agreement provides the security for that debt by pledging specific assets. Both documents are typically executed at the same closing, and the collateral agreement cross-references the loan agreement as the obligation being secured. Neither document alone is sufficient for a fully documented secured lending transaction.",{"vs":124,"vs_template_id":461,"summary":462},"personal-guarantee-D13255","A personal guarantee makes an individual personally liable for a debt if the primary borrower defaults — recourse is against the guarantor's personal assets generally. A collateral agreement limits the lender's recourse to the specific pledged asset. Lenders frequently require both: the collateral agreement provides first-resort asset-level security; the personal guarantee fills any gap between collateral value and the outstanding balance.",{"vs":107,"vs_template_id":464,"summary":465},"promissory-note-D185","A promissory note is the borrower's unconditional written promise to repay a stated sum — it is the evidence of the debt itself. A collateral agreement is the security document that backs that promise with a lien on specific assets. A promissory note can exist without collateral (unsecured note); a collateral agreement always references an underlying obligation, such as a promissory note or loan agreement.",{"vs":467,"vs_template_id":468,"summary":469},"Mortgage Agreement","D{MORTGAGE_AGREEMENT_ID}","A mortgage (or deed of trust) is a collateral instrument specific to real property — it is recorded with the county recorder to create a lien on land and buildings. A collateral agreement under UCC Article 9 applies to personal property — equipment, inventory, receivables, and intangibles. For loans secured by both real and personal property, lenders use both instruments simultaneously, with the mortgage covering real estate and the collateral agreement covering everything else.",{"use_template":471,"template_plus_review":475,"custom_drafted":479},{"best_for":472,"cost":473,"time":474},"Straightforward loans between known parties with clearly identified personal property collateral and no prior liens","Free","30–60 minutes",{"best_for":476,"cost":477,"time":478},"Loans above $50,000, multiple collateral types, existing prior liens, or cross-border transactions","$400–$800 for a transactional attorney review","2–5 business days",{"best_for":480,"cost":481,"time":482},"Complex secured lending — revolving credit facilities, IP collateral, inter-creditor arrangements, or multi-jurisdictional enforcement","$1,500–$5,000+","1–3 weeks",[484,489,494,499],{"code":485,"name":486,"flag_asset_id":487,"note":488},"us","United States","flag-us","Collateral agreements covering personal property are governed by Article 9 of the Uniform Commercial Code, adopted in all 50 states with minor variations. A security interest attaches when value is given, the debtor authenticates a security agreement, and the debtor has rights in the collateral. Perfection for most personal property requires a UCC-1 filing in the debtor's state of organization. California, Texas, and Delaware each have nuances in their UCC filing offices and debtor-name indexing rules worth confirming with local counsel.",{"code":490,"name":491,"flag_asset_id":492,"note":493},"ca","Canada","flag-ca","Personal property security is governed provincially under each province's Personal Property Security Act (PPSA) — broadly similar to UCC Article 9 but with provincial variations in filing registries and priority rules. Ontario, British Columbia, and Alberta each maintain separate PPSA registries. Quebec uses a distinct civil-law hypothec regime under the Civil Code of Quebec rather than a PPSA framework, making Quebec collateral transactions significantly different in both documentation and registration requirements.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"uk","United Kingdom","flag-uk","Security over personal property in England and Wales is governed by the Companies Act 2006 and general common law. Fixed charges attach to specific identified assets; floating charges cover a changing pool of assets and crystallize on default or appointment of a receiver. Security created by a UK-registered company must be registered at Companies House within 21 days of creation or it is void against a liquidator and other creditors. Scotland has a separate Scots law framework for heritable (real) and movable (personal) property security.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"eu","European Union","flag-eu","There is no unified EU personal property security law — each member state has its own framework. Germany uses the Sicherungsübereignung (security transfer of title) and Sicherungszession (security assignment of receivables). France uses the nantissement for pledges over business assets and the cession Dailly for receivables. The EU Financial Collateral Directive (2002/47/EC) provides a streamlined regime for financial collateral arrangements (cash and securities) but does not cover general commercial asset pledges. Cross-border EU collateral transactions typically require legal opinions from each relevant jurisdiction.",[252,505,255,506,507,508,259,259,509,510,511,512],"promissory-note-D434","security-agreement-D13258","non-profit-partnership-agreement-D14023","demand-to-pay-promissory-note-D207","letter-of-default-on-promissory-note-D431","non-disclosure-agreement-nda-D12692","master-service-agreement-D12711","equipment-lease-agreement-D1140",{"emit_how_to":201,"emit_defined_term":201},{"primary_folder":515,"secondary_folder":516,"document_type":517,"industry":518,"business_stage":519,"tags":520,"confidence":526},"business-legal-agreements","guaranties-and-collateral","agreement","general","all-stages",[521,522,523,524,525],"legal","collateral","security-agreement","lending","loan-security",0.95,"\u003Ch2>What is a Collateral Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Collateral Agreement\u003C/strong> — also called a security agreement — is a legally binding document under which a borrower (the grantor) pledges one or more specifically identified assets to a lender (the secured party) as security for a loan or other financial obligation. The agreement names the collateral, attaches the lender's security interest to that property, establishes the borrower's ongoing obligations to protect the asset, and defines the lender's remedies — including repossession and sale — if the borrower defaults. In the United States, collateral agreements covering personal property (equipment, inventory, receivables, and intangibles) are governed by Article 9 of the Uniform Commercial Code; comparable regimes exist under provincial PPSA statutes in Canada and the Companies Act in the United Kingdom.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written collateral agreement, a lender has no enforceable claim over any specific asset if the borrower defaults — the loan becomes unsecured, and the lender stands in line with every other general creditor in a bankruptcy proceeding. A signed collateral agreement is also a prerequisite for filing a UCC-1 financing statement, which perfects the security interest and establishes priority over later creditors. The practical consequences of skipping this document are severe: in a default scenario, a lender without a perfected security interest can lose its entire position to a later creditor who filed first, or watch the collateral be liquidated by a bankruptcy trustee for the benefit of other creditors. For borrowers, a properly drafted agreement protects them too — the release clause and clear default definitions prevent lenders from making unjustified claims on pledged assets or delaying termination statements after the debt is repaid. This template gives both parties a clear, enforceable framework from the moment funds change hands.\u003C/p>\n",1781185968255]