[{"data":1,"prerenderedAt":530},["ShallowReactive",2],{"document-commercial-pledge-equipment-and-machinery-D1137":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":37,"customDescModule":183,"customdescription":6,"mdFm":184,"mdProseHtml":529},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"COMMERCIAL PLEDGE This Commercial Pledge (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Lender\"), company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Borrower\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 1. LOAN Subject to and in accordance with all the terms and conditions of that certain credit agreement entered into between the Lender and the Borrower bearing formal date of [DATE] as same may be amended and supplemented at any time and from time to time (the \"Credit Agreement\"), the Lender offered to lend to the Borrower, and the Borrower accepted to borrow from the Lender, an amount equal to the sum of [AMOUNT IN LETTERS] ($[AMOUNT]) (the \"Loan\"), with interest thereon at the rates stipulated therein. 2. SECURITY As security for the performance by the Borrower of all its obligations, present and future, direct and indirect, absolute and contingent, toward the Lender hereunder and under the Credit Agreement and the Security Documents (as defined in the Credit Agreement), including, without limiting the generality of the foregoing, the obligation to repay in principal, interest, fees and accessories, all moneys presently owing and due and hereafter to become owing and due to the Lender by the Borrower under the Credit Agreement, the Borrower, in accordance with the provisions of the laws of [COUNTRY], hereby charges and pledges as and by way of a commercial pledge, in favor of the Lender, the following equipment and machinery, to wit: [DESCRIBE EQUIPMENT/MACHINERY] (the \"Property\") 3. PROPERTY The location of the property of a fixed nature, which is pledged herein, is at the location of the Borrower situated at [FULL ADDRESS]; 4. PLEDGE LOCATION The establishment in the [State/Province] of [STATE/PROVINCE] where are controlled and recorded the movements of the assets pledged herein and which are not of a fixed nature, is located at [FULL ADDRESS]; 5. CHANGE OF LOCATION OR ESTABLISHMENT If the said location or establishment is changed, the Borrower shall immediately inform the Lender thereof in writing. If the said location or establishment is changed for another outside the registration division in which the location or establishment, as the case may be, is located, the Borrower shall immediately furnish the Lender, to its entire satisfaction, evidence of renewal of the deed registration at the office of the new registration division. 6. PROPERTY PLEDGED The Borrower hereby declares and guarantees that the property pledged has been paid in full and belongs to it in sole and absolute ownership, free and clear of all liens, privileges and charges whatsoever except for Permitted Encumbrances, as that term is defined in the Credit Agreement. 7. NO LIEN The Borrower shall maintain the property pledged in good condition and repair and free and clear of all liens, charges and privileges whatsoever, except for Permitted Encumbrances; it shall grant the Lender access at all times to the said property for the purpose of inspecting same. 8. PREMISES If any property pledged is located in leased premises or is at any time placed in leased premises, the Borrower shall immediately notify the lessor in writing of the said pledge and shall provide the Lender with proof of such notification to its entire satisfaction. 9. ADDITIONAL SECURITY",null,"Commercial Pledge Equipment and Machinery","4",48,"doc","https://templates.business-in-a-box.com/imgs/1000px/commercial-pledge_equipment-and-machinery-D1137.png","https://templates.business-in-a-box.com/imgs/250px/1137.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1137.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Production & Operations","/templates/production-operations/",{"label":20,"url":21},"Equipment Agreement","/templates/equipment-agreement/","commercial pledge equipment machinery","Commercial Pledge Equipment and Machinery Template","https://templates.business-in-a-box.com/imgs/400px/1137.png",[26,16,19],{"label":27,"url":28},"Templates","/templates/",[30,31,34],{"label":27,"url":28},{"label":32,"url":33},"Legal Agreements","/templates/business-legal-agreements/",{"label":35,"url":36},"Guaranties & Collateral","/templates/guaranties-and-collateral/",[38,42,46,50,54,58,62,66,70,74,78,82,86,105,122,136,151,165],{"label":39,"url":40,"thumb":41,"extension":10},"Checklist Equipment Lease","/template/checklist-equipment-lease-D1134","https://templates.business-in-a-box.com/imgs/250px/1134.png",{"label":43,"url":44,"thumb":45,"extension":10},"Equipment Lease Agreement","/template/equipment-lease-agreement-D1140","https://templates.business-in-a-box.com/imgs/250px/1140.png",{"label":47,"url":48,"thumb":49,"extension":10},"Equipment Operating Lease","/template/equipment-operating-lease-D1145","https://templates.business-in-a-box.com/imgs/250px/1145.png",{"label":51,"url":52,"thumb":53,"extension":10},"Equipment Purchase Agreement","/template/equipment-purchase-agreement-D1146","https://templates.business-in-a-box.com/imgs/250px/1146.png",{"label":55,"url":56,"thumb":57,"extension":10},"Equipment Loan Agreement","/template/equipment-loan-agreement-D12843","https://templates.business-in-a-box.com/imgs/250px/12843.png",{"label":59,"url":60,"thumb":61,"extension":10},"Equipment Maintenance Agreement","/template/equipment-maintenance-agreement-D1144","https://templates.business-in-a-box.com/imgs/250px/1144.png",{"label":63,"url":64,"thumb":65,"extension":10},"Equipment Maintenance Log","/template/equipment-maintenance-log-D13685","https://templates.business-in-a-box.com/imgs/250px/13685.png",{"label":67,"url":68,"thumb":69,"extension":10},"Equipment Sales Agreement","/template/equipment-sales-agreement-D1147","https://templates.business-in-a-box.com/imgs/250px/1147.png",{"label":71,"url":72,"thumb":73,"extension":10},"Equipment Use Agreement","/template/equipment-use-agreement-D12844","https://templates.business-in-a-box.com/imgs/250px/12844.png",{"label":75,"url":76,"thumb":77,"extension":10},"Repurchase Agreement Equipment","/template/repurchase-agreement-equipment-D1153","https://templates.business-in-a-box.com/imgs/250px/1153.png",{"label":79,"url":80,"thumb":81,"extension":10},"Net Equipment Lease","/template/net-equipment-lease-D1152","https://templates.business-in-a-box.com/imgs/250px/1152.png",{"label":83,"url":84,"thumb":85,"extension":10},"Personal Protective Equipment Policy","/template/personal-protective-equipment-policy-D13746","https://templates.business-in-a-box.com/imgs/250px/13746.png",{"description":87,"descriptionCustom":6,"label":88,"pages":89,"size":90,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":104},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") 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] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. 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",513,"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":89,"size":90,"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":35,"url":134},"guaranties-collateral","/template/personal-guarantee-D405",{"description":137,"descriptionCustom":6,"label":138,"pages":108,"size":90,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":143,"url":150},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), 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] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":143,"description":6},"non disclosure agreement nda",[145,147],{"label":32,"url":146},"business-legal-agreements",{"label":148,"url":149},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":152,"descriptionCustom":6,"label":153,"pages":154,"size":155,"extension":10,"preview":156,"thumb":157,"svgFrame":158,"seoMetadata":159,"parents":160,"keywords":163,"url":164},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), 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 \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[161,162],{"label":32,"url":146},{"label":32,"url":146},"security agreement","/template/security-agreement-D915",{"description":166,"descriptionCustom":6,"label":167,"pages":168,"size":169,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":174,"keywords":181,"url":182},"BILL OF SALE This Bill of Sale (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Seller\") , a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BUYER NAME] (the \"Buyer\"), 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] For good and valuable consideration, the Seller hereby sells and transfers possession of the following goods in their present condition and location to the Buyer, and its successors and assigns forever, the following described goods [DETAILED LIST OF GOODS]. Seller warrants and represents that he/she has good title to said property, full authority to sell and transfer same and that said goods and chattels are being sold free and clear of all liens, encumbrances, liabilities and adverse claims, of every nature and description.","Bill of Sale","1",29,"https://templates.business-in-a-box.com/imgs/1000px/bill-of-sale-D1229.png","https://templates.business-in-a-box.com/imgs/250px/1229.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1229.xml",{"title":6,"description":6},[175,178],{"label":176,"url":177},"Sales & Marketing","sales-marketing",{"label":179,"url":180},"Marketing & Sales Contracts","marketing-sales-contracts","bill sale","/template/bill-of-sale-D1229",false,{"seo":185,"reviewer":197,"legal_disclaimer":201,"quick_facts":202,"at_a_glance":204,"personas":208,"variants":233,"glossary":259,"clauses":293,"how_to_fill":339,"common_mistakes":380,"faqs":405,"industries":433,"comparisons":458,"diy_vs_lawyer":472,"jurisdictions":485,"related_template_ids_curated":506,"schema":516,"classification":517},{"meta_title":186,"meta_description":187,"primary_keyword":188,"secondary_keywords":189},"Commercial Pledge Equipment and Machinery Template | BIB","Free commercial pledge template for equipment and machinery. Covers collateral description, pledge terms, default remedies, and creditor rights.","commercial pledge equipment and machinery template",[190,191,192,193,194,195,196],"equipment pledge agreement template","machinery pledge agreement","commercial pledge agreement template word","equipment collateral agreement","pledge of equipment template free","secured lending equipment template","equipment security 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 Commercial Pledge of Equipment and Machinery is a legally binding security agreement in which a business pledges specific equipment or machinery as collateral to secure a loan or credit facility. This free Word download gives you a structured, attorney-reviewed starting point that identifies the pledged assets, defines the creditor's rights upon default, and sets out the obligations of the pledgor — all in a single document you can edit online and export as PDF.\n","Use it when a lender requires equipment or machinery as security for a commercial loan, line of credit, or lease financing arrangement. It is also used when a business grants a security interest in physical assets to a supplier extending trade credit or to a private lender funding capital expenditure.\n","Identification of the pledgor and pledgee, a precise description of the pledged equipment and machinery, the secured obligations covered, the pledgor's representations and warranties, covenants regarding maintenance and insurance, default triggers and remedies, release conditions, and governing law. The template includes placeholder language for serial numbers, asset valuations, and lien registry references.\n",[209,213,217,221,225,229],{"title":210,"use_case":211,"icon_asset_id":212},"Small business owners","Pledging manufacturing equipment to secure a working capital loan","persona-small-business-owner",{"title":214,"use_case":215,"icon_asset_id":216},"Equipment finance managers","Documenting collateral terms for a machinery loan or lease-back arrangement","persona-finance-manager",{"title":218,"use_case":219,"icon_asset_id":220},"Commercial lenders","Taking a security interest in borrower equipment before advancing funds","persona-commercial-lender",{"title":222,"use_case":223,"icon_asset_id":224},"Construction company owners","Pledging heavy machinery as collateral for a project financing facility","persona-contractor",{"title":226,"use_case":227,"icon_asset_id":228},"Manufacturing executives","Securing a credit line using production-line equipment as pledged assets","persona-ceo",{"title":230,"use_case":231,"icon_asset_id":232},"Private lenders and investors","Formalizing a security interest in a borrower's equipment before funding","persona-investor",[234,237,241,245,248,251,255],{"situation":235,"recommended_template":7,"slug":236},"Pledging a single, high-value piece of equipment as sole collateral","commercial-pledge-equipment-and-machinery-D1137",{"situation":238,"recommended_template":239,"slug":240},"Pledging a fleet of vehicles rather than stationary machinery","Vehicle Pledge Agreement","pledge-agreement-advance-D903",{"situation":242,"recommended_template":243,"slug":244},"Securing a loan against general business assets including inventory and receivables","General Security Agreement","security-agreement-D915",{"situation":246,"recommended_template":43,"slug":247},"Financing equipment through a lease with an option to purchase","equipment-lease-agreement-D1140",{"situation":249,"recommended_template":250,"slug":244},"Granting a blanket lien over all company assets to a senior lender","Commercial Security Agreement",{"situation":252,"recommended_template":253,"slug":254},"Pledging real property in addition to equipment for a larger facility loan","Commercial Mortgage Agreement","lease-agreement-D1179",{"situation":256,"recommended_template":257,"slug":258},"Securing a supplier's extended payment terms against equipment owned by the buyer","Trade Credit Security Agreement","trade-agreement-D13189",[260,263,266,269,272,275,278,281,284,287,290],{"term":261,"definition":262},"Pledgor","The party that owns the equipment or machinery and grants a security interest in it to the creditor as collateral for an obligation.",{"term":264,"definition":265},"Pledgee","The creditor or lender who receives the security interest in the pledged equipment and holds the right to enforce it upon default.",{"term":267,"definition":268},"Collateral","The specific equipment or machinery identified in the agreement that secures repayment of the underlying debt or obligation.",{"term":270,"definition":271},"Security Interest","A legal right a creditor acquires in a debtor's property that allows the creditor to repossess or sell the property if the debt is not repaid.",{"term":273,"definition":274},"Perfection","The process of making a security interest enforceable against third parties — typically by filing a financing statement in the appropriate government registry.",{"term":276,"definition":277},"Default","A defined triggering event — such as missed payment, insolvency, or breach of a covenant — that entitles the pledgee to enforce its rights against the collateral.",{"term":279,"definition":280},"UCC Financing Statement (Form UCC-1)","A public notice filing in the US under the Uniform Commercial Code that perfects a creditor's security interest in personal property including equipment.",{"term":282,"definition":283},"PPSA","Personal Property Security Act — the Canadian provincial legislation governing security interests in personal property, including equipment and machinery.",{"term":285,"definition":286},"Floating Charge","A security interest that covers a class of assets (such as all machinery) as they exist from time to time, crystallizing into a fixed charge upon a defined default event.",{"term":288,"definition":289},"Redemption Right","The pledgor's right to recover the pledged equipment by paying off the secured obligation in full before the pledgee completes enforcement.",{"term":291,"definition":292},"Force Majeure","A contractual clause that excuses a party's non-performance when extraordinary events beyond its control — fire, flood, or government action — prevent it from meeting its obligations.",[294,299,304,309,314,319,324,329,334],{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Parties and Recitals","Identifies the pledgor and pledgee by full legal name and entity type, and summarizes the underlying loan or credit facility being secured.","This Commercial Pledge Agreement ('Agreement') is entered into on [DATE] between [PLEDGOR LEGAL NAME], a [STATE/PROVINCE] [ENTITY TYPE] ('Pledgor'), and [PLEDGEE LEGAL NAME], a [STATE/PROVINCE] [ENTITY TYPE] ('Pledgee'), in connection with that certain [LOAN AGREEMENT / CREDIT FACILITY] dated [DATE] ('Secured Obligation').","Using a trade name instead of the registered legal entity name for either party. If the pledgor name on the agreement does not match the name on title records or the lien registry filing, the security interest may be unperfected and unenforceable against third-party creditors.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Description of Pledged Equipment","Precisely identifies each piece of equipment or machinery being pledged, including make, model, serial number, year, and current location.","The Pledgor hereby pledges the following equipment ('Collateral'): [MAKE / MODEL / YEAR] with serial number [SERIAL NUMBER], located at [ADDRESS], together with all attachments, accessories, and proceeds thereof.","Using generic descriptions like 'all manufacturing equipment' without serial numbers or asset identifiers. Vague descriptions create disputes about which assets are covered and may fail the UCC or PPSA sufficiency standard for collateral identification.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Secured Obligations","States exactly which debts, obligations, or credit facilities are secured by the pledge — including principal, interest, fees, and future advances if applicable.","The pledge secures all amounts owed by Pledgor to Pledgee under the [LOAN AGREEMENT] dated [DATE], including principal of $[AMOUNT], interest at [RATE]% per annum, fees, costs of enforcement, and any future advances made under the same facility.","Failing to reference future advances when the credit facility allows multiple draws. Without explicit future-advance language, later disbursements under the same facility may not be covered by the pledge.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Representations and Warranties","The pledgor confirms it owns the equipment free and clear of other liens, has authority to pledge it, and that the asset descriptions are accurate.","Pledgor represents and warrants that: (a) it holds good and marketable title to the Collateral free of all other liens and encumbrances; (b) it has full authority to enter into this Agreement; and (c) no financing statement covering the Collateral is on file in any public registry except as disclosed in Schedule [X].","Omitting a warranty that no prior liens exist. If a prior creditor already holds a perfected security interest in the same equipment, the new pledgee's interest ranks behind it — a fact that should be disclosed and addressed before signing.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Pledgor Covenants","Ongoing obligations the pledgor must meet for the duration of the pledge — maintaining and insuring the equipment, not selling or further encumbering it, and allowing inspections.","Pledgor covenants that it will: (a) maintain the Collateral in good working order; (b) keep the Collateral insured against loss or damage for not less than $[AMOUNT], naming Pledgee as loss payee; (c) not sell, transfer, or further encumber the Collateral without Pledgee's prior written consent; and (d) permit Pledgee to inspect the Collateral on [X] business days' notice.","Setting no minimum insurance coverage amount or failing to name the lender as loss payee. If the equipment is destroyed and the insurance proceeds go to the pledgor rather than the pledgee, the creditor loses its collateral without recovery.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Default Events","Lists the specific circumstances that trigger the pledgee's enforcement rights — missed payments, insolvency, breach of covenants, material damage to the equipment, or misrepresentation.","Each of the following constitutes an 'Event of Default': (a) failure to pay any secured amount within [X] days of the due date; (b) insolvency, bankruptcy filing, or appointment of a receiver by or against Pledgor; (c) material breach of any covenant in this Agreement; (d) loss, destruction, or material damage to the Collateral not covered by insurance.","Defining default events so narrowly that they only include missed payments. Restricting defaults to payment alone leaves the lender without recourse if the pledgor sells the equipment, lets insurance lapse, or files for bankruptcy before missing a payment.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Remedies Upon Default","Describes what the pledgee can do after a default — repossess the equipment, sell it, apply proceeds to the debt, and pursue the pledgor for any deficiency.","Upon an Event of Default, Pledgee may, without further notice except as required by law: (a) take possession of the Collateral; (b) sell, lease, or otherwise dispose of the Collateral in a commercially reasonable manner; (c) apply net proceeds to the Secured Obligations; and (d) pursue Pledgor for any deficiency remaining after such application.","Including a self-help repossession clause without a 'commercially reasonable' standard for the subsequent sale. Courts have voided security agreements and held lenders liable for the difference between the actual sale price and the market value when sales were conducted without following the commercially reasonable standard required under UCC Article 9 and equivalent laws.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Release and Discharge","States when the pledge is automatically released — typically upon full repayment of the secured obligation — and requires the pledgee to file a termination statement in the relevant registry.","Upon full payment and satisfaction of all Secured Obligations, this pledge shall be automatically released, and Pledgee shall promptly file a termination statement or discharge in the applicable registry within [X] business days of receipt of written request from Pledgor.","No timeframe for the lender to file a lien release after repayment. In many jurisdictions, a creditor that fails to file a timely termination statement after payoff is liable for statutory penalties — but a contract clause accelerates compliance and protects both parties.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing Law and Enforcement","Specifies which jurisdiction's law governs the agreement and where disputes will be resolved — typically the jurisdiction where the equipment is located or where the creditor is based.","This Agreement is governed by the laws of [STATE / PROVINCE / COUNTRY]. The parties submit to the exclusive jurisdiction of the courts of [JURISDICTION] for any dispute arising under this Agreement, except that Pledgee may seek injunctive or emergency relief in any court of competent jurisdiction.","Choosing a governing law that differs from where the equipment is physically located. Security interest perfection rules follow the location of the collateral in most jurisdictions — a governing law mismatch can result in an unperfected interest if lien filings are made in the wrong registry.",[340,345,350,355,360,365,370,375],{"step":341,"title":342,"description":343,"tip":344},1,"Enter the full legal names and entity details of both parties","Use the registered corporate or trade name exactly as it appears in the relevant business registry. Include the entity type (LLC, corporation, partnership) and jurisdiction of formation for both pledgor and pledgee.","Search the secretary of state or corporate registry before signing to confirm the pledgor's exact legal name — a mismatch between the agreement and the lien filing can render the security interest unperfected.",{"step":346,"title":347,"description":348,"tip":349},2,"Identify each piece of equipment with precision","List every asset being pledged with its make, model, year of manufacture, serial number, and current physical address. Attach a separate Schedule A if there are more than three items.","Photograph each asset and attach the images to the executed agreement. Visual evidence of the collateral's condition at signing protects both parties in a later dispute.",{"step":351,"title":352,"description":353,"tip":354},3,"Define the secured obligations completely","State the total principal amount, the applicable interest rate, any fees, and whether the pledge covers future advances under the same facility. Reference the underlying loan agreement by date and parties.","If the facility allows multiple draws, include explicit future-advance language — otherwise only the initial disbursement may be secured.",{"step":356,"title":357,"description":358,"tip":359},4,"Set the pledgor's maintenance and insurance covenants","Specify the minimum insurance coverage amount, confirm that the lender must be named as loss payee, and set the inspection notice period the pledgor must honor.","Require the pledgor to deliver a certificate of insurance naming the pledgee as loss payee within five business days of signing — do not wait until the first annual renewal.",{"step":361,"title":362,"description":363,"tip":364},5,"List default events relevant to the transaction","Include at minimum: payment default with a cure period, insolvency or bankruptcy filing, sale or transfer of the equipment without consent, and material damage not covered by insurance.","Add a cross-default clause if the pledgor has other loan agreements with the same lender — a default on one facility should trigger a default on all.",{"step":366,"title":367,"description":368,"tip":369},6,"Confirm the governing law matches the equipment's location","Select the jurisdiction where the equipment is physically located as the governing law. This ensures that lien registry filings under UCC, PPSA, or local equivalents are made in the correct office.","If equipment is spread across multiple states or provinces, note each location and confirm with counsel whether separate filings are required in each jurisdiction.",{"step":371,"title":372,"description":373,"tip":374},7,"Execute and file the lien registration","Both parties sign the agreement, and the pledgee immediately files a UCC-1 financing statement (US), PPSA financing statement (Canada), or equivalent local registration to perfect the security interest.","File the financing statement before or on the same day as the first loan disbursement — priority among competing creditors is determined by the date and time of filing, not the date of the agreement.",{"step":376,"title":377,"description":378,"tip":379},8,"Calendar the release obligation","Once the secured obligation is paid in full, the pledgee must file a lien termination within the timeframe specified in the agreement. Set a calendar reminder at the payoff date.","In most US states, failure to file a UCC termination within 20 days of a written demand after payoff exposes the secured party to $500 in statutory damages plus actual losses.",[381,385,389,393,397,401],{"mistake":382,"why_it_matters":383,"fix":384},"Vague or incomplete collateral description","A description like 'all machinery on premises' without serial numbers or asset IDs may fail the UCC sufficiency standard and leave the security interest unenforceable against third-party creditors or a bankruptcy trustee.","List every asset by make, model, serial number, and location. Attach a signed Schedule A if the equipment list exceeds three items.",{"mistake":386,"why_it_matters":387,"fix":388},"Failing to perfect the security interest by filing","An unperfected security interest is enforceable only between the two parties — it loses priority to any subsequent perfected creditor or to a bankruptcy trustee who can avoid unperfected liens entirely.","File a UCC-1 (US), PPSA financing statement (Canada), or local equivalent in the correct registry on or before the date of the first loan disbursement.",{"mistake":390,"why_it_matters":391,"fix":392},"No insurance loss-payee designation","If the pledged equipment is destroyed or stolen and insurance proceeds are paid to the pledgor rather than the pledgee, the lender loses its collateral and must pursue the pledgor personally for repayment.","Require the pledgor to name the pledgee as loss payee on the insurance policy and deliver a certificate of insurance before funds are advanced.",{"mistake":394,"why_it_matters":395,"fix":396},"Governing law that does not match the equipment's location","Security interest perfection rules follow the asset's physical location under UCC Article 9 and PPSA. Choosing a governing law from a different jurisdiction means lien filings may be made in the wrong registry, leaving the interest unperfected.","Always set the governing law to the jurisdiction where the pledged equipment is physically located. For multi-location assets, confirm filing requirements in each jurisdiction with legal counsel.",{"mistake":398,"why_it_matters":399,"fix":400},"Omitting cure periods from default provisions","An agreement that treats any payment delay — even one day — as an immediate default with no cure period exposes the pledgee to claims of commercially unreasonable enforcement and can invite court scrutiny of the entire transaction.","Include a defined cure period of at least 5–10 business days for payment defaults and 15–30 days for covenant breaches before enforcement rights are triggered.",{"mistake":402,"why_it_matters":403,"fix":404},"No cross-default or change-of-control trigger","If the pledgor defaults on a separate facility or is acquired by a competitor, the pledgee may have no contractual right to accelerate the secured obligation or enforce the pledge until the primary payment default occurs — potentially months later.","Add a cross-default clause covering other material credit agreements and a change-of-control trigger that gives the pledgee the right to demand repayment if the pledgor's ownership changes materially.",[406,409,412,415,418,421,424,427,430],{"question":407,"answer":408},"What is a commercial pledge of equipment and machinery?","A commercial pledge of equipment and machinery is a security agreement in which a business grants a creditor a legally enforceable interest in specific physical assets — production equipment, manufacturing machinery, or other capital equipment — as collateral for a loan or credit facility. If the borrower defaults, the creditor has the contractual and legal right to repossess and sell the pledged equipment and apply the proceeds to the outstanding debt. The pledge must typically be registered in a public lien registry to be enforceable against third-party creditors.\n",{"question":410,"answer":411},"What is the difference between a pledge and a mortgage on equipment?","A pledge is a security interest in personal property — movable assets like machinery, vehicles, and equipment. A mortgage typically encumbers real property, such as land or buildings. In some jurisdictions, the term 'chattel mortgage' describes a security interest in movable property, which is functionally similar to a pledge. The key practical difference is the registry where the interest is filed: UCC or PPSA for equipment pledges, land title registries for real property mortgages.\n",{"question":413,"answer":414},"Does a commercial pledge need to be registered?","Yes, in virtually all major jurisdictions. In the United States, a UCC-1 financing statement must be filed with the secretary of state to perfect the security interest and establish priority over subsequent creditors. In Canada, a PPSA financing statement must be filed provincially. In the UK, security interests in equipment must typically be registered at Companies House within 21 days of creation. An unregistered pledge is generally enforceable only between the two parties and will lose priority to any perfected creditor or to a bankruptcy trustee.\n",{"question":416,"answer":417},"Can the pledgor continue using the equipment after signing?","Yes — in a standard commercial pledge, the pledgor retains possession and use of the equipment throughout the term of the loan. This is what distinguishes a pledge from actual physical delivery of collateral. The pledgee holds a security interest on paper and in the registry but does not take physical possession unless a default event occurs and enforcement is triggered.\n",{"question":419,"answer":420},"What happens to the pledge if the pledgor sells the equipment?","The pledge agreement should prohibit the pledgor from selling, transferring, or further encumbering the collateral without the pledgee's written consent. A perfected security interest also follows the collateral into the hands of most buyers — known as the 'security interest follows the collateral' rule under UCC Article 9 — unless the buyer is a buyer in the ordinary course of business. Any unauthorized sale is typically an event of default that entitles the pledgee to accelerate the debt and enforce the pledge.\n",{"question":422,"answer":423},"What rights does the lender have when the borrower defaults?","Upon a defined event of default, the pledgee typically has the right to take possession of the equipment, sell or lease it in a commercially reasonable manner, apply the net proceeds to the outstanding secured obligation, and pursue the pledgor for any deficiency if the sale proceeds do not cover the full debt. In the US, UCC Article 9 governs the enforcement process and requires that notice be given to the debtor before a public or private disposition of the collateral.\n",{"question":425,"answer":426},"How is a commercial pledge different from an equipment lease?","In a pledge, the borrower owns the equipment outright and grants the lender a security interest in it as collateral for a loan. In an equipment lease, the lessor owns the equipment and the lessee pays for the right to use it — ownership may transfer at the end of the lease only if a purchase option is exercised. A pledge arises in the context of debt financing; a lease is a use-right arrangement. Tax and accounting treatment differs significantly between the two structures.\n",{"question":428,"answer":429},"Do I need a lawyer to prepare a commercial pledge agreement?","For straightforward domestic equipment pledges securing a single loan from a known lender, a high-quality template is a sound starting point. Legal review is strongly recommended when the collateral is high-value or mission-critical, when the pledgor has prior liens on the same equipment, when the transaction crosses jurisdictions, or when the credit facility is syndicated among multiple lenders. A lawyer can also confirm the correct registry for the lien filing and verify the financing statement format required in the applicable jurisdiction.\n",{"question":431,"answer":432},"What is the priority of competing security interests in the same equipment?","Priority among competing creditors who hold security interests in the same equipment is generally determined by the order of perfection — that is, the date and time of the lien registry filing. The first to file a financing statement in the correct registry typically holds the senior position. A purchase money security interest (PMSI), where the lender finances the purchase of the specific equipment, may take super-priority over earlier general security interests if the PMSI is perfected within the statutory window — 20 days in most US states, 10 days under some Canadian PPSA statutes.\n",[434,438,442,446,450,454],{"industry":435,"icon_asset_id":436,"specifics":437},"Manufacturing","industry-manufacturing","Production-line equipment and CNC machinery are pledged to secure capital expenditure loans and revolving credit facilities tied to plant output capacity.",{"industry":439,"icon_asset_id":440,"specifics":441},"Construction and Trades","industry-construction","Heavy excavators, cranes, and compactors are commonly pledged to secure project financing, with equipment location clauses that account for job-site mobility.",{"industry":443,"icon_asset_id":444,"specifics":445},"Transportation and Logistics","industry-logistics","Forklifts, loading equipment, and warehouse machinery are pledged to secure equipment loans, with serial-number tracking and GPS monitoring covenants increasingly standard.",{"industry":447,"icon_asset_id":448,"specifics":449},"Agriculture","industry-agriculture","Tractors, combines, and irrigation equipment are pledged to secure seasonal operating loans, with covenants addressing storage during off-season periods and crop-cycle repayment schedules.",{"industry":451,"icon_asset_id":452,"specifics":453},"Healthcare and Medical Devices","industry-healthtech","Diagnostic imaging systems and surgical equipment are pledged to finance capital upgrades, with regulatory compliance covenants ensuring the equipment remains licensed and calibrated.",{"industry":455,"icon_asset_id":456,"specifics":457},"Food and Beverage","industry-food-beverage","Bottling lines, industrial ovens, and refrigeration units are pledged to secure expansion financing, with insurance covenants covering contamination and product recall events.",[459,462,465,468],{"vs":243,"vs_template_id":460,"summary":461},"D{GENERAL_SECURITY_AGREEMENT_ID}","A general security agreement creates a floating or fixed charge over all or substantially all of a business's assets — inventory, receivables, and equipment combined. A commercial pledge of equipment is asset-specific, naming only the identified machinery. Use a general security agreement when a senior lender requires a blanket lien; use an equipment pledge when securing a discrete asset-based loan against specific machinery.",{"vs":43,"vs_template_id":463,"summary":464},"equipment-lease-agreement-D12905","An equipment lease grants the lessee the right to use equipment owned by the lessor in exchange for periodic payments, with ownership remaining with the lessor. A pledge agreement allows the equipment owner to retain both ownership and use while granting a creditor a security interest. Choose a lease when the business wants to use equipment without a purchase; choose a pledge when the business already owns the equipment and needs to borrow against it.",{"vs":107,"vs_template_id":466,"summary":467},"D{PROMISSORY_NOTE_ID}","A promissory note is a standalone promise to repay a specific sum — it creates an unsecured obligation with no collateral backing. A commercial pledge agreement supplements a promissory note by attaching specific equipment as security. Use the note to document the debt and the pledge to secure it; issuing the note without the pledge leaves the creditor unsecured in the event of default or insolvency.",{"vs":469,"vs_template_id":470,"summary":471},"Chattel Mortgage Agreement","D{CHATTEL_MORTGAGE_ID}","A chattel mortgage (used in Australia, the UK, and some Canadian contexts) is a financing arrangement in which the lender technically holds title to the equipment until the loan is repaid, at which point title transfers to the borrower. A commercial pledge leaves title with the pledgor throughout and grants only a security interest. The practical enforcement outcome is similar, but the title mechanics and applicable registration rules differ by jurisdiction.",{"use_template":473,"template_plus_review":477,"custom_drafted":481},{"best_for":474,"cost":475,"time":476},"Straightforward domestic equipment pledges securing a single loan from a known lender, where prior liens have been confirmed clear","Free","30–60 minutes",{"best_for":478,"cost":479,"time":480},"Equipment valued above $100,000, transactions involving prior or competing liens, or pledgors with operations in multiple states or provinces","$400–$900 for a lawyer review and lien search","2–5 days",{"best_for":482,"cost":483,"time":484},"Syndicated credit facilities, cross-border pledges, high-value industrial assets, or transactions requiring simultaneous filings in multiple jurisdictions","$2,000–$8,000+","1–3 weeks",[486,491,496,501],{"code":487,"name":488,"flag_asset_id":489,"note":490},"us","United States","flag-us","Security interests in equipment are governed by UCC Article 9. The pledgee must file a UCC-1 financing statement with the secretary of state in the state where the debtor is located (for registered entities, the state of formation) to perfect the interest. Priority is determined by filing date and time. A purchase money security interest in equipment must be perfected within 20 days of the debtor taking possession to obtain super-priority. California and New York have additional local requirements for certain asset classes.",{"code":492,"name":493,"flag_asset_id":494,"note":495},"ca","Canada","flag-ca","Security interests in equipment are governed by provincial Personal Property Security Acts (PPSA) in all provinces except Quebec, where the Civil Code of Quebec governs hypothecs on movable property. PPSA financing statements must be filed in the province where the equipment is located or where the debtor is based, depending on asset type. Quebec hypothecs require notarized form and registration at the Register of Personal and Movable Real Rights (RPMRR). Priority among competing creditors follows first-to-file rules under each provincial PPSA.",{"code":497,"name":498,"flag_asset_id":499,"note":500},"uk","United Kingdom","flag-uk","Security interests in equipment created by a company must be registered at Companies House within 21 days of creation under the Companies Act 2006; failure to register renders the charge void against a liquidator and other creditors. Fixed charges on specific equipment take priority over floating charges over the same assets. Lenders should also conduct searches at Companies House before taking security to identify prior charges. Scotland has a separate system under the Scots law of security.",{"code":502,"name":503,"flag_asset_id":504,"note":505},"eu","European Union","flag-eu","Security interest regimes vary significantly across EU member states — there is no harmonized EU-level framework for pledges of movable property. France uses the 'gage' and 'nantissement de matériel' regimes; Germany uses the 'Sicherungsübereignung' (security transfer of title). Most member states require registration in a national or notarial registry for the interest to be effective against third parties. GDPR considerations arise when pledged equipment processes personal data. Cross-border pledges involving assets in multiple member states require jurisdiction-by-jurisdiction analysis.",[247,507,508,509,510,244,511,512,254,513,514,515],"loan-agreement-D417","promissory-note-D434","personal-guarantee-D405","non-disclosure-agreement-nda-D12692","bill-of-sale-D1229","indemnification-agreement-D13016","asset-purchase-agreement-D928","letter-of-intent_acquisition-of-business-D5197","partnership-agreement-D12551",{"emit_how_to":201,"emit_defined_term":201},{"primary_folder":146,"secondary_folder":518,"document_type":519,"industry":520,"business_stage":521,"tags":522,"confidence":528},"guaranties-and-collateral","agreement","general","all-stages",[523,524,525,526,527],"collateral","security-agreement","equipment-pledge","loan-security","commercial-lending",0.95,"\u003Ch2>What is a Commercial Pledge of Equipment and Machinery?\u003C/h2>\n\u003Cp>A \u003Cstrong>Commercial Pledge of Equipment and Machinery\u003C/strong> is a legally binding security agreement in which a business owner — the pledgor — grants a creditor or lender — the pledgee — a security interest in specific identified equipment or machinery as collateral for a loan, credit facility, or other financial obligation. Unlike an unsecured loan, the pledge gives the creditor a defined legal right to repossess and sell the pledged assets if the borrower defaults, making it a primary tool for asset-backed commercial lending. The pledgor retains possession and use of the equipment throughout the loan term; it is the creditor's registered claim against the asset, not physical custody, that provides the security. To be enforceable against third parties — including other creditors and a bankruptcy trustee — the security interest must be perfected by filing a financing statement in the applicable public registry: a UCC-1 in the United States, a PPSA financing statement in Canada, or equivalent filings in other jurisdictions.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a formal, registered pledge agreement, a lender advancing funds against equipment holds nothing more than a personal promise to repay — which ranks alongside every other unsecured creditor in an insolvency. If the borrowing business fails, the equipment may be sold by a bankruptcy trustee to satisfy senior secured creditors first, leaving the unfiled lender with little or no recovery. For the borrower, an undocumented pledge creates equal risk: no release mechanism, no defined cure periods, and no clarity on when the lender's claim is extinguished after repayment. A properly drafted and registered Commercial Pledge of Equipment and Machinery protects both sides — it gives the lender a perfected, priority-ranked security interest and gives the borrower clear covenants, defined default thresholds, and an automatic release obligation once the debt is discharged. This template provides the structure to accomplish all of that in a single document, ready to edit and execute before the first disbursement is made.\u003C/p>\n",1778696238805]