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Security Agreement


Overview 
- The Security Agreement allows someone who is borrowing money from another to give a security interest (collateral) in some tangible personal property.
- When one party loans money to another, it is customary for the borrower to give the lender a promissory note.  The promissory note records the borrower's obligation to repay the loan, plus interest. 
- In many cases, the loan is "unsecured."  That is, the borrower has not put up any collateral or granted any security interest in tangible personal property of the borrower to the lender to secure the repayment of the loan.  
- It is often impossible to borrow money unless you can provide some secur ity for the loan.  The most common example of a secured loan is the mortgage given by a homeowner when borrowing the money to buy a house.  Likewise, an individual or business may grant a security interest in personal property to secure the repayment of t he loan. 

When You Need It 
- When you are attempting to borrow money from a lender and need to put up some form of collateral to secure the loan. 


Getting Started 

You will need: 
- Name and address of the borrower. 
- Name and address of the lender. 
- Description of the property to be used as collateral, including the location. 
- Details regarding the Promissory Note being secured by the property. 

When to Review and Revise 
- To correct the information contained in the Agreement. 
- To document security offered for another loan.