Security Agreement

Description

If a lender wants to secure payment of a Promissory Note with a lien on personal property located in Arizona, the lender must obtain the borrower’s signature on a document that creates the lien.  When the lender has a lien on personal property and the borrower defaults under the Promissory Note, the lender can foreclose on the personal property and sell the encumbered property at an auction and apply the proceeds to the debt.  The Security Agreement is the document that when signed by a borrower or a guarantor creates a lien on the signer’s personal property that is described in the Security Agreement.

Our Security Agreement gives you the option to describe specific items of personal property to be encumbered or you can use the all encompassing language that gives the lender a lien on all of the borrower’s personal property.  Note:  The Security Agreement is not a stand-alone document.  This document is intended to be used with a Promissory Note.  There must be a debt or obligation created to which the Security Agreement creates a lien.

Disclaimer: If you purchase this form, you are buying a product from Richard Keyt and KEYTLaw, LLC. (collectively the “Firm”), and you are not hiring the Firm to provide any legal services or legal advice or represent you in any capacity. If you modify the form in any way, you are solely responsible for the legal affect of the changes you make. The form is drafted to comply only with Arizona law because Arizona is the only state where Richard Keyt is licensed to practice law. Do not use this document in any state other than Arizona without first having it reviewed and modified as necessary by an experienced attorney in the state where you intend to use the form. The Firm makes no representations or warranties of any kind with respect to this form. The Firm disclaims all warranties for fitness for a particular purpose.