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Security Agreement

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Sample Security Agreement Form Template
Security Agreement Basics

If you're thinking of giving someone a loan, or you want to borrow, a Security Agreement can help guarantee the loan. With a Security Agreement, the borrower offers interest in a piece of personal property that will transfer to the lender if they cannot pay the loan. This can be a great way to entice a lender to make a loan, but if you're the borrower you should be positive that you can repay. A Security Agreement helps you spell out the terms and get started.

Use the Security Agreement document if:

  • You're going to lend someone money, but want collateral.
  • You need to borrow from a lender, and they've asked for security.

If you want to get a loan, you might need to offer a little collateral to secure the loan; this is where a Security Agreement can help out. Security is essentially personal property that's put on the line for the loan. If you're the borrower, the lender gets that property if you don't make good on the loan. If you're the lender, you get the reassurance that you'll at least receive some compensation even if payments can't be made. No matter if it's real property or personal items, signing a Security Agreement helps ensure that the loan is repaid.

Other names for this document: Security Agreement Form, Collateral Agreement


Sample Security Agreement

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