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Security Revenue Agreement

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SECURITY REVENUE AGREEMENT

Parties

This Security Revenue Agreement (the Agreement) is entered into as of by and between:

Recitals

WHEREAS, Secured Party has agreed to extend credit and other financial accommodations to Pledgor in reliance upon the pledge and assignment of certain revenues and receivables as security for Pledgor's obligations under this Agreement; and

WHEREAS, Pledgor desires to grant and assign to Secured Party a security interest in certain revenue streams, accounts, and collections as described herein to secure payment of the Secured Obligations;

WHEREAS, the parties intend for this Agreement to evidence the security interest, to set forth the rights and obligations of the parties with respect to the pledged revenues, and to specify collection and application procedures;

Scope of Work

The Pledgor shall continue to perform the business activities that generate the pledged revenues described below. The parties acknowledge that the Pledgor's obligations include permitting the Secured Party to verify, collect, and apply pledged revenues pursuant to this Agreement.

Grant of Security Interest; Collateral

Pledgor hereby grants, pledges, assigns and transfers to Secured Party a continuing security interest in and to all currently existing and after-acquired revenues, accounts, proceeds and collections arising from Pledgor's operations, including but not limited to:

Payment Terms

The Pledgor's obligations secured by this Agreement (Secured Obligations) shall include all principal, interest, fees and expenses described below and in related financing documents.

Payments due to Secured Party shall be applied first to accrued fees and costs, then to interest, and thereafter to principal. Late payments shall accrue the following late fee:

Collection Procedures

Pledgor authorizes Secured Party to collect pledged revenues directly from third parties and to apply collections to the Secured Obligations without prior notice to Pledgor in the event of an Event of Default. Pledgor shall deliver to Secured Party deposit account information and shall not change such accounts without Secured Party's prior written consent.

Term and Termination

This Agreement shall commence on and shall continue until unless earlier terminated pursuant to this Section.

Either party may terminate this Agreement for material breach by the other party after providing written notice and a cure period of days to cure the breach.

Confidentiality

Each party shall hold in confidence and shall not disclose to any third party any non-public information received from the other party in connection with this Agreement, except to the extent required by law or to enforce the rights of the Secured Party. Confidential information shall not include information that (a) is or becomes publicly available through no fault of the receiving party, (b) was rightfully in the receiving party's possession prior to receipt from the disclosing party, or (c) is independently developed by the receiving party without use of the disclosing party's confidential information.

Default and Remedies

An Event of Default includes failure to make required payments, material breach of this Agreement, insolvency, or unauthorized disposition of pledged revenues. Upon occurrence of an Event of Default, Secured Party may exercise all rights and remedies available at law or in equity, including foreclosure on the pledged revenues, set-off, and collection directly from obligors of the pledged accounts.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to conflict of law principles.

Miscellaneous

Assignment: Pledgor shall not assign its rights or obligations under this Agreement without Secured Party's prior written consent. Secured Party may assign or sell its interest in the Secured Obligations and the collateral. The rights and remedies of Secured Party are cumulative and may be exercised singularly or concurrently.

Entire Agreement

This Agreement, together with any security, financing, or related documents executed in connection herewith, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and representations, whether written or oral.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth in the Parties section or to such other address as either party may designate in writing.

Secured Party (Print Name):

By:

Date:

Pledgor (Print Name):

By:

Date:

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What a Security Revenue Agreement Covers

A Security Revenue Agreement is a contractual document that allocates revenue streams tied to security services, equipment, or secured assets and sets out payment terms, security interests, and remedies for nonpayment. It identifies the contracting parties, defines revenue sharing or collection mechanics, describes collateral or lien positions (if any), and establishes governance such as invoicing, reporting, and dispute resolution. These agreements are commonly used where ongoing receipts are pledged or shared and often require precise enumeration of revenue sources, timing, and filing steps to perfect security interests.

Why a Clear Security Revenue Agreement Matters

A concise Security Revenue Agreement reduces disputes by documenting who receives which revenue, when payments are due, and what security interests secure obligations. Clear terms preserve enforceability, ease audit and tax reporting, and support remedies such as foreclosure or UCC enforcement when payments stop.

Why a Clear Security Revenue Agreement Matters

Typical Parties Who Use This Agreement

The Security Revenue Agreement is used by parties involved in providing, financing, or receiving revenue tied to security services or secured assets.

  • Security service providers and integrators who receive recurring monitoring or maintenance revenue and need clear billing and lien terms.
  • Property owners and landlords who allocate tenant-generated security fees or pass-through revenues and must define collection and recording procedures.
  • Lenders, investors, and factoring companies that take or evaluate security interests in revenue streams as collateral for financing.

Use this agreement when revenue flows are dedicated, collateralized, or split among service providers, owners, and investors.

Who Signs and Executes

Security Provider — VP Operations

A security company’s operations executive signs to confirm service delivery, revenue calculation methods, and permission to invoice. The signer should have authority to bind the company and provide bank or payment details for remittance.

Property Owner — CFO

A property owner or manager signs to accept revenue splits, reporting cadence, and any grant of a security interest. The CFO or authorized signatory should verify tax identification, corporate capacity, and complete any required UCC filing instructions.

Essential Information to Include

Parties’ legal names: Exact entity names
Effective date: MM/DD/YYYY
Revenue allocation: Percent or formula
Payment schedule: Due dates/frequency
Collateral description: Itemize secured assets
Governing law: State designation

Step-by-Step: Preparing and Executing the Agreement

Follow these practical steps to prepare, review, execute, and record a Security Revenue Agreement efficiently.

  • 01
    Draft the agreement: Define revenue sources and payment mechanics
  • 02
    Verify identities: Confirm legal names and signatory authority
  • 03
    Include security terms: Describe collateral and UCC filing obligations
  • 04
    Execute and record: Sign, notarize (if required), and file UCC‑1

Typical Workflow from Draft to Filing

A common end-to-end workflow includes drafting, routing for signature, execution, and any public filings to perfect interests.

  • Prepare document: Populate fields and attach exhibits
  • Route for signatures: Set signing order and authentication
  • Execute electronically: Capture audit trail on signing
  • File or record: Submit UCC‑1 or public notice if needed

Typical Digital Workflow Settings

Configure digital workflow settings to match your approval and recording requirements before sending for signature.

Field Configuration
Signature order Sequential or parallel signing
Authentication Email link, SMS code, or KBA
Notifications Automatic reminders and receipts
UCC filing Attach UCC direction and exhibits

Technical and Platform Considerations

Choose a platform that supports PDF and DOCX import, audit trails, and integrations with your finance systems.

  • Formats: PDF, DOCX, HTML supported
  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Authentication: Email, SMS, KBA, SSO

Core Elements Every Agreement Should Contain

These six components form the contract’s backbone and reduce ambiguity in revenue allocation, security, and enforcement.

Parties

Full legal names, capacities, contact and remittance details so signatories can be identified and bank payments processed without delay.

Revenue allocation

Exact percentages, calculation formulae, invoice definitions, and treatment of refunds, chargebacks, and taxes to avoid downstream disputes.

Security interest

Clear collateral description, priority language, and acknowledgement whether a UCC‑1 filing will be made to perfect the interest.

Payment terms

Due dates, late fees, interest on delinquent amounts, and accepted payment methods to clarify cash flow expectations.

Default & remedies

Events of default, cure periods, acceleration, and remedies including foreclosure, indemnities, and attorneys’ fees.

Termination

Duration, renewal mechanics, wind‑down obligations, and ongoing obligations for revenue that accrues after termination.

Supporting Documents and Export Options

Attach supporting exhibits and choose formats that preserve signatures and metadata for later enforcement or audit.

Supporting documents

UCC‑1 financing statements, invoices, exhibits describing equipment, and service schedules that clarify the pledged revenue.

Export formats

Signed PDFs and DOCX exports retain appearance and most audit metadata; ensure the platform preserves the audit trail.

Notarization evidence

If notarization or remote online notarization (RON) is used, retain the notary acknowledgment and A/V recording where required.

Audit trail

Keep the completion certificate showing timestamps, IP addresses, and signer authentication steps for legal evidence.

Practical Tips for an Accurate Agreement

Follow these best practices to reduce execution errors and protect priority of security interests.

Confirm legal entity and capacity
Verify the signer’s corporate authority and use corporate resolutions if needed; incorrect capacity statements can void enforcement actions.
Specify revenue definitions clearly
Define what counts as revenue (gross vs. net, deductions, chargebacks) to prevent differing interpretations that lead to disputes.
Plan UCC filing strategy
File UCC‑1 in the debtor’s state with a clear collateral description and follow state form guidance to preserve priority.
Retain complete audit records
Store signed PDFs plus platform-generated audit trails and notarization records to support later enforcement or regulatory review.

Common Preparation Mistakes to Avoid

  • Using informal or trade names instead of the legal entity name, which can cause UCC searches to miss the filing and reduce priority.
  • Failing to define the revenue base (gross vs. net) so parties disagree on calculation during collections or refunds.
  • Omitting explicit authority for the signatory, resulting in internal rejection or the need to reexecute with proper corporate approvals.
  • Neglecting to attach exhibits such as equipment lists or project schedules that demonstrate what revenue streams are covered by the security interest.

Consequences of Inaccurate or Missing Information

Incorrect TIN: Backup withholding
Late information returns: IRS penalties apply
Poor UCC filing: Loss of priority
Undefined revenue: Contract disputes
Missing authority: Execution challenges
No audit trail: Weakened enforceability

eSignature Platform Pricing Snapshot (vendor columns shown for comparison)

Compare starting prices and core features relevant to signing and storing Security Revenue Agreements; signNow is listed first per platform comparison guidance.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Verify with vendor Verify with vendor Verify with vendor Verify with vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions

Answers to common execution and compliance questions about Security Revenue Agreements and electronic signatures.


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