Security documents clause: Copy, customize, and use instantly
Introduction
A security documents clause outlines the requirement for the parties to provide, execute, or deliver certain security documents to ensure that obligations under the agreement are met. These documents typically secure the performance of obligations or guarantee the repayment of debts. This clause is crucial in financing agreements, ensuring that the lender or party seeking security has the necessary legal instruments to enforce their rights in the event of default.
Below are templates for security documents clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Security documents clause for providing collateral security
This variation applies when collateral security is provided as part of the agreement.
The Borrower agrees to provide, execute, and deliver to the Lender the following security documents: [list of specific collateral security documents, such as security agreements, pledges, or mortgages]. These documents shall secure the Borrower’s obligations under this Agreement and may be enforced by the Lender in the event of default.
Security documents clause for pledging assets as security
This variation applies when assets are pledged as security under the agreement.
As security for the repayment of the loan, the Borrower agrees to pledge the following assets: [list of assets being pledged]. The Borrower shall execute a pledge agreement and provide all necessary documentation to perfect the security interest granted herein.
Security documents clause for granting a security interest in real property
This variation applies when real property is used to secure obligations under the agreement.
The Borrower agrees to grant a security interest in the real property located at [address or description of property] to the Lender, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a deed of trust, mortgage, or other necessary security documents to perfect the Lender’s interest in the property.
Security documents clause for providing guarantees as security
This variation applies when third-party guarantees are provided as security.
The Guarantor agrees to execute and deliver a guarantee agreement, guaranteeing the Borrower’s obligations under this Agreement. The Guarantor’s liability under the guarantee shall be secured by a security interest in [describe collateral, if applicable], as specified in the security documents.
Security documents clause for perfecting security interests
This variation applies when the agreement outlines the process for perfecting security interests.
The Borrower agrees to take all necessary actions to perfect the security interest granted to the Lender under this Agreement, including the execution and delivery of the security documents required by applicable law, such as UCC financing statements, pledges, or other perfection filings.
Security documents clause for securing debt obligations with personal property
This variation applies when personal property is used to secure debt obligations.
The Borrower agrees to provide security for the debt obligations under this Agreement by granting a security interest in the following personal property: [list of personal property]. The Borrower shall execute the necessary security documents, including a security agreement, to grant the Lender a perfected interest in these assets.
Security documents clause for delivering title documents
This variation applies when title documents are required as part of the security arrangement.
The Borrower agrees to deliver to the Lender all necessary title documents related to the collateral, including but not limited to certificates of title, deeds, and other evidence of ownership, to secure the performance of obligations under this Agreement. The Borrower shall also execute and deliver any additional security documents required for the Lender to perfect its security interest.
Security documents clause for providing a pledge of shares as security
This variation applies when shares of stock are pledged as security.
The Borrower agrees to pledge [insert number] shares of [company name] as collateral for the obligations under this Agreement. The Borrower shall execute a share pledge agreement and deliver the stock certificates to the Lender, who shall have the right to enforce the pledge in the event of default.
Security documents clause for delivering a personal guarantee with security
This variation applies when a personal guarantee is provided along with security.
In addition to the security interest granted under this Agreement, the Guarantor agrees to provide a personal guarantee to secure the Borrower’s obligations. The Guarantor shall execute and deliver the personal guarantee and any necessary security documents to ensure the enforceability of the guarantee.
Security documents clause for subordinating security interests
This variation applies when the security interests are subordinated to other existing interests.
The parties agree that the security interests granted under this Agreement shall be subordinated to the existing security interests of [list of parties], as specified in the subordination agreement. The Borrower shall execute and deliver the subordination agreement and any other necessary security documents to give effect to this subordination.
Security documents clause for security over intellectual property
This variation applies when intellectual property is used as security for the obligations.
The Borrower agrees to grant a security interest in the intellectual property assets described as [list of intellectual property, e.g., patents, trademarks, copyrights] to the Lender, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver all necessary security documents, including an intellectual property security agreement, to perfect the security interest.
Security documents clause for providing cash collateral
This variation applies when cash is used as collateral.
The Borrower agrees to deposit [insert amount] in cash into a designated account as collateral for the obligations under this Agreement. The Borrower shall execute a cash collateral agreement and provide any additional security documents necessary to secure the Lender’s interest in the cash deposit.
Security documents clause for third-party collateralization
This variation applies when a third party provides collateral to secure the agreement.
The Guarantor agrees to pledge assets in favor of the Lender, including [list of assets] as collateral for the obligations of the Borrower under this Agreement. The Guarantor shall execute and deliver the necessary security documents to grant the Lender a perfected security interest in these assets.
Security documents clause for delivery of personal property documents
This variation applies when personal property documents are delivered as security.
The Borrower agrees to deliver to the Lender all necessary documents to establish and perfect the Lender’s security interest in personal property collateral, including but not limited to bills of sale, UCC financing statements, and security agreements.
Security documents clause for providing security over real and personal property
This variation applies when both real and personal property are used as security.
The Borrower agrees to grant a security interest in both real property and personal property to secure the obligations under this Agreement. The Borrower shall execute and deliver a combination of security documents, including a deed of trust and security agreements for personal property.
Security documents clause for providing floating charge over assets
This variation applies when a floating charge is provided over the Borrower’s assets.
The Borrower agrees to grant a floating charge over its assets, including inventory, receivables, and other personal property, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a floating charge agreement and any other necessary security documents.
Security documents clause for securing debt obligations through stock options
This variation applies when stock options are pledged as security for debt obligations.
The Borrower agrees to pledge any stock options granted to it as security for its debt obligations under this Agreement. The Borrower shall execute the appropriate security documents to grant the Lender a perfected security interest in the pledged stock options.
Security documents clause for release of security upon repayment
This variation applies when security is released upon the repayment of the debt.
Upon full repayment of the obligations under this Agreement, the Lender agrees to release the security interest in the collateral and return all relevant security documents to the Borrower. The Borrower’s obligations under the Agreement will be fully discharged, and all liens and claims will be removed.
Security documents clause for securing obligations through promissory notes
This variation applies when a promissory note is used to secure obligations.
The Borrower agrees to execute and deliver a promissory note as a security document, securing the obligations under this Agreement. The promissory note will be delivered to the Lender and held as collateral until the obligations are fully satisfied.
Security documents clause for providing a lien on real property
This variation applies when a lien is placed on real property to secure obligations.
The Borrower agrees to grant the Lender a lien on the real property located at [address or description of property] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a deed of trust or mortgage to perfect the lien.
Security documents clause for granting security over future assets
This variation applies when security is granted over future assets to be acquired.
The Borrower agrees to grant the Lender a security interest in any future assets acquired by the Borrower, including inventory, equipment, or accounts receivable. The Borrower shall execute and deliver the necessary security documents to grant a perfected security interest in such future assets.
Security documents clause for granting a personal property security interest
This variation applies when security is granted over personal property, such as equipment or vehicles.
The Borrower agrees to grant the Lender a security interest in all personal property owned by the Borrower, including equipment, machinery, and vehicles. The Borrower shall execute and deliver a security agreement to perfect the Lender’s interest in these assets.
Security documents clause for executing collateral trust agreements
This variation applies when a collateral trust agreement is executed as part of the security arrangement.
The Borrower agrees to execute a collateral trust agreement and deliver the necessary security documents to the Lender, granting the Lender a perfected interest in the collateral held in trust. This agreement shall serve to secure the Borrower’s obligations under this Agreement.
Security documents clause for securing future payment obligations
This variation applies when future payment obligations are secured through security documents.
The Borrower agrees to provide the Lender with security over its future payment obligations under this Agreement. The Borrower shall execute and deliver security documents that establish the Lender’s interest in any future payments made by the Borrower.
Security documents clause for pledging equity interests in subsidiaries
This variation applies when equity interests in subsidiaries are pledged as security.
The Borrower agrees to pledge its equity interests in its subsidiaries as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a pledge agreement to grant the Lender a perfected security interest in the pledged equity interests.
Security documents clause for including subordinated security interests
This variation applies when the security interests granted are subordinated to other existing interests.
The Borrower agrees to grant a security interest to the Lender, subordinated to the existing security interests held by [insert creditor]. The Borrower shall execute and deliver the necessary subordination agreement and security documents to effectuate this subordination.
Security documents clause for providing security in the form of insurance policies
This variation applies when insurance policies are used as collateral.
The Borrower agrees to provide the Lender with security in the form of insurance policies. The Borrower shall assign the insurance policies to the Lender, execute an assignment agreement, and deliver all necessary documentation to perfect the Lender’s interest in the policies.
Security documents clause for providing a charge over intangible assets
This variation applies when intangible assets, such as patents or trademarks, are used as security.
The Borrower agrees to grant a security interest in its intangible assets, including but not limited to patents, trademarks, copyrights, and goodwill, as collateral for the obligations under this Agreement. The Borrower shall execute the necessary security documents to perfect the Lender’s interest in these intangible assets.
Security documents clause for granting a floating charge over business assets
This variation applies when a floating charge is granted over the Borrower's business assets.
The Borrower agrees to grant the Lender a floating charge over all of its business assets, including inventory, receivables, and other tangible and intangible property. The Borrower shall execute and deliver a floating charge agreement to perfect the Lender’s interest in the business assets.
Security documents clause for securing payment obligations with a bond
This variation applies when a bond is used to secure payment obligations.
The Borrower agrees to issue a bond as security for the repayment of its obligations under this Agreement. The Borrower shall execute and deliver the bond to the Lender, who will hold the bond as collateral until the obligations are satisfied in full.
Security documents clause for pledging cash equivalents as security
This variation applies when cash equivalents, such as certificates of deposit, are pledged as security.
The Borrower agrees to pledge cash equivalents, including certificates of deposit and Treasury bills, as collateral for the obligations under this Agreement. The Borrower shall execute a pledge agreement and deliver the cash equivalents to the Lender to perfect the security interest.
Security documents clause for using a letter of credit as collateral
This variation applies when a letter of credit is used to secure obligations.
The Borrower agrees to provide a letter of credit issued in favor of the Lender as collateral for the obligations under this Agreement. The Borrower shall execute the necessary documents to establish and perfect the Lender’s interest in the letter of credit.
Security documents clause for providing a guarantee backed by assets
This variation applies when a guarantee is backed by assets, such as real estate or personal property.
The Guarantor agrees to provide a guarantee backed by assets, including [insert specific assets], to secure the Borrower’s obligations under this Agreement. The Guarantor shall execute and deliver a guarantee agreement and the necessary security documents to perfect the Lender’s interest in the assets.
Security documents clause for using future receivables as collateral
This variation applies when future receivables are used as collateral.
The Borrower agrees to grant the Lender a security interest in its future receivables, including all accounts receivable generated after the execution of this Agreement. The Borrower shall execute and deliver a security agreement to perfect the Lender’s interest in these receivables.
Security documents clause for granting a lien on specific equipment
This variation applies when a lien is placed on specific equipment to secure obligations.
The Borrower agrees to grant the Lender a lien on specific equipment, including [list of equipment], as collateral for the obligations under this Agreement. The Borrower shall execute a lien agreement and provide the necessary documentation to perfect the Lender’s lien on the equipment.
Security documents clause for securing obligations with a charge on land
This variation applies when land is used as collateral.
The Borrower agrees to grant the Lender a charge on land located at [insert address or legal description of property] to secure the obligations under this Agreement. The Borrower shall execute and deliver the necessary charge documents to perfect the Lender’s interest in the land.
Security documents clause for providing security over livestock or crops
This variation applies when livestock or crops are pledged as security.
The Borrower agrees to grant the Lender a security interest in livestock, crops, and other agricultural assets to secure the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the assets.
Security documents clause for securing debt with a pledge of intellectual property
This variation applies when intellectual property is pledged as collateral.
The Borrower agrees to grant the Lender a security interest in the Borrower’s intellectual property, including patents, trademarks, copyrights, and other intangible assets, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender's interest in the intellectual property.
Security documents clause for providing a guarantee secured by real estate
This variation applies when a guarantee is secured by real estate.
The Guarantor agrees to provide a guarantee backed by real estate, including [description of real property], to secure the Borrower’s obligations under this Agreement. The Guarantor shall execute and deliver the necessary guarantee documents and real estate security documents to perfect the Lender's interest.
Security documents clause for delivering security over inventory
This variation applies when inventory is pledged as collateral.
The Borrower agrees to grant the Lender a security interest in the Borrower’s inventory, including raw materials, finished goods, and goods in transit, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the inventory.
Security documents clause for granting security over accounts receivable
This variation applies when accounts receivable are pledged as collateral.
The Borrower agrees to grant the Lender a security interest in all accounts receivable, both current and future, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver all necessary security documents, including UCC financing statements, to perfect the Lender’s interest in the receivables.
Security documents clause for providing a charge over corporate shares
This variation applies when corporate shares are used as collateral.
The Borrower agrees to grant the Lender a security interest in its shares of stock in [name of company] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a share pledge agreement and provide all necessary documentation to perfect the Lender’s interest in the shares.
Security documents clause for providing a fixed charge over land and property
This variation applies when a fixed charge is granted over land and property.
The Borrower agrees to grant the Lender a fixed charge over the real property located at [insert address or legal description of property] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary charge documents to perfect the Lender’s fixed charge.
Security documents clause for granting security over future acquired assets
This variation applies when security is granted over future acquired assets.
The Borrower agrees to grant the Lender a security interest in any assets that the Borrower acquires in the future, including but not limited to equipment, inventory, and receivables. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in these future assets.
Security documents clause for using bonds as collateral
This variation applies when bonds are pledged as collateral.
The Borrower agrees to pledge [insert number or description of bonds] to the Lender as collateral for the obligations under this Agreement. The Borrower shall execute a bond pledge agreement and deliver the bonds to the Lender to perfect the Lender’s security interest.
Security documents clause for pledging securities to secure obligations
This variation applies when securities, such as stocks or bonds, are pledged as collateral.
The Borrower agrees to pledge securities, including [list of securities], to secure its obligations under this Agreement. The Borrower shall execute and deliver the necessary pledge agreements and provide the securities to the Lender for perfection of the security interest.
Security documents clause for providing personal property as collateral
This variation applies when personal property is pledged as collateral.
The Borrower agrees to grant the Lender a security interest in the Borrower’s personal property, including vehicles, machinery, and equipment, to secure the obligations under this Agreement. The Borrower shall execute the necessary security documents to perfect the Lender’s interest in the personal property.
Security documents clause for granting a floating charge over business assets
This variation applies when a floating charge is granted over business assets, including inventory and receivables.
The Borrower agrees to grant the Lender a floating charge over the Borrower’s business assets, including inventory, receivables, and future property. The Borrower shall execute and deliver a floating charge agreement to perfect the Lender’s interest in these assets.
Security documents clause for pledging real estate as collateral for a loan
This variation applies when real estate is pledged as collateral for a loan.
The Borrower agrees to pledge real estate located at [insert description of property] to the Lender as collateral for the loan. The Borrower shall execute a mortgage or deed of trust to secure the Lender’s interest in the property.
Security documents clause for granting an interest in leasehold property
This variation applies when leasehold property is used as collateral.
The Borrower agrees to grant the Lender a security interest in the Borrower’s leasehold interest in the property located at [insert address or description]. The Borrower shall execute the necessary security documents, including an assignment of lease, to perfect the Lender’s interest in the leasehold.
Security documents clause for securing obligations with cash collateral
This variation applies when cash is used as collateral.
The Borrower agrees to deposit [insert amount] in cash into an escrow account as collateral for the obligations under this Agreement. The Borrower shall execute a cash collateral agreement and provide the necessary documentation to perfect the Lender’s interest in the cash deposit.
Security documents clause for pledging future income streams
This variation applies when future income streams are pledged as collateral.
The Borrower agrees to pledge any future income streams, including but not limited to sales revenues and royalties, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the income streams.
Security documents clause for providing an assignment of contract rights as collateral
This variation applies when rights under a contract are assigned as collateral.
The Borrower agrees to assign to the Lender all rights, title, and interest in [name of contract] as collateral for the obligations under this Agreement. The Borrower shall execute an assignment agreement and any necessary security documents to perfect the Lender’s interest in the contract rights.
Security documents clause for using real property as collateral for long-term debt
This variation applies when real property is used as collateral for a long-term debt.
The Borrower agrees to pledge real property located at [address or legal description] as collateral for the long-term debt obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents, including a mortgage deed, to secure the Lender’s interest in the real property.
Security documents clause for providing a pledge of intellectual property rights
This variation applies when intellectual property rights are pledged as collateral.
The Borrower agrees to pledge its intellectual property rights, including patents, trademarks, and copyrights, to the Lender as collateral for the obligations under this Agreement. The Borrower shall execute a pledge agreement and deliver the relevant documents to perfect the Lender’s interest in the intellectual property.
Security documents clause for granting a lien on uncollected receivables
This variation applies when receivables that have not yet been collected are pledged as collateral.
The Borrower agrees to grant the Lender a lien on all uncollected receivables as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary lien documents to perfect the Lender’s interest in these receivables.
Security documents clause for granting security over partnership interests
This variation applies when partnership interests are pledged as collateral.
The Borrower agrees to grant the Lender a security interest in its partnership interests in [name of partnership] to secure the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents, including an assignment of partnership interest, to perfect the Lender’s interest.
Security documents clause for granting a fixed charge over specific assets
This variation applies when a fixed charge is granted over specific assets to secure the obligations.
The Borrower agrees to grant a fixed charge over the following specific assets: [list of assets, e.g., equipment, inventory, or property], as collateral for the obligations under this Agreement. The Borrower shall execute and deliver all necessary security documents to perfect the fixed charge granted.
Security documents clause for using a first lien on assets
This variation applies when the Lender receives a first lien on the collateral.
The Borrower agrees to grant the Lender a first lien on the assets described as [list of assets] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary lien documents to establish and perfect the first lien on these assets.
Security documents clause for using a second lien on assets
This variation applies when the Lender receives a second lien on the collateral.
The Borrower agrees to grant the Lender a second lien on the assets described as [list of assets] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary lien documents, subordinated to the first lien, to perfect the second lien.
Security documents clause for providing a guarantee secured by pledged assets
This variation applies when a guarantee is secured by pledged assets.
The Guarantor agrees to provide a guarantee backed by assets, including [list of assets], to secure the Borrower’s obligations under this Agreement. The Guarantor shall execute and deliver a guarantee agreement and the necessary security documents to perfect the Lender’s interest in the pledged assets.
Security documents clause for providing a charge over machinery and equipment
This variation applies when machinery and equipment are used as collateral.
The Borrower agrees to grant the Lender a charge over all machinery, equipment, and related assets as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary charge documents to perfect the Lender’s interest in these assets.
Security documents clause for creating a floating charge over inventory
This variation applies when a floating charge is created over inventory as collateral.
The Borrower agrees to create a floating charge over all of its current and future inventory as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the inventory.
Security documents clause for providing a lien over real estate
This variation applies when a lien is placed over real estate to secure the obligations.
The Borrower agrees to provide the Lender with a lien over real estate located at [address or legal description of property] as collateral for the obligations under this Agreement. The Borrower shall execute a mortgage or deed of trust to perfect the lien in favor of the Lender.
Security documents clause for granting a pledge of securities held in another company
This variation applies when securities in another company are pledged as collateral.
The Borrower agrees to pledge securities in [name of company] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a pledge agreement and any necessary documents to perfect the Lender’s interest in the pledged securities.
Security documents clause for using insurance policies as collateral
This variation applies when insurance policies are pledged as collateral.
The Borrower agrees to assign all rights to the insurance policies covering its assets, including [list of assets], as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary assignment documents to perfect the Lender’s interest in the insurance policies.
Security documents clause for providing cash equivalents as collateral
This variation applies when cash equivalents, such as certificates of deposit, are pledged as collateral.
The Borrower agrees to pledge cash equivalents, including certificates of deposit, government bonds, and other financial instruments, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a pledge agreement and provide the cash equivalents to the Lender to perfect the security interest.
Security documents clause for granting security over intellectual property rights
This variation applies when intellectual property rights are granted as security.
The Borrower agrees to grant the Lender a security interest in all of its intellectual property rights, including patents, trademarks, copyrights, and trade secrets, as collateral for the obligations under this Agreement. The Borrower shall execute the necessary security documents to perfect the Lender’s interest in the intellectual property rights.
Security documents clause for providing security over future inventory
This variation applies when future inventory is pledged as collateral.
The Borrower agrees to grant the Lender a security interest in any inventory that the Borrower acquires in the future. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the future inventory as it is acquired.
Security documents clause for pledging company shares to secure obligations
This variation applies when company shares are pledged as collateral for obligations.
The Borrower agrees to pledge [insert number] shares of [name of company] as collateral for the obligations under this Agreement. The Borrower shall execute and deliver a pledge agreement and the relevant share certificates to the Lender to perfect the Lender’s interest in the shares.
Security documents clause for granting security over receivables
This variation applies when receivables are pledged as collateral.
The Borrower agrees to grant the Lender a security interest in all accounts receivable, including both current and future receivables, as collateral for the obligations under this Agreement. The Borrower shall execute and deliver the necessary security documents to perfect the Lender’s interest in the receivables.
Security documents clause for securing obligations with a guarantee from a third party
This variation applies when a third-party guarantee is provided to secure obligations.
The Guarantor, a third party, agrees to provide a guarantee to secure the Borrower’s obligations under this Agreement. The Guarantor shall execute and deliver the necessary guarantee agreement and security documents to perfect the Lender’s interest in the guarantee.
Security documents clause for using the Borrower’s bank account as collateral
This variation applies when the Borrower’s bank account is used as collateral.
The Borrower agrees to pledge its bank account, including all balances and funds held therein, as collateral for the obligations under this Agreement. The Borrower shall execute the necessary security documents, including an account pledge agreement, to perfect the Lender’s interest in the account.
Security documents clause for using personal guarantees as collateral
This variation applies when personal guarantees are provided as collateral.
The Borrower agrees to provide personal guarantees from [name(s) of guarantors] as collateral for the obligations under this Agreement. The Borrower shall execute the necessary personal guarantee agreements and any additional security documents to perfect the Lender’s interest in these guarantees.
Security documents clause for securing the loan with future receivables
This variation applies when future receivables are pledged to secure a loan.
The Borrower agrees to assign future receivables from [specific source of receivables] to the Lender as security for the obligations under this Agreement. The Borrower shall execute and deliver the necessary assignment documents to perfect the Lender’s interest in the future receivables.
Security documents clause for using real estate for security
This variation applies when real estate is provided as security.
The Borrower agrees to grant the Lender a security interest in real estate located at [address or description of property] to secure the obligations under this Agreement. The Borrower shall execute and deliver a deed of trust or mortgage agreement to perfect the security interest in the real estate.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.