Fill and Sign the What is a Promissory Note and Security Agreement Small Business Form

Security Agreement Page 1 of 4 Security Agreement in Equipment used for a Business Purpose Securing a Promissory Note Security Agreement made the day of , 20 , between of , hereinafter (Name of Debtor) (Street Address, City, County, State, Zip Code) called the Debtor; and of , (Name of Secured Party) (Street Address) . (City, County, State, Zip Code) Debtor warrants and covenants as follows: 1. Security Interest. Debtor, for valuable consideration, grants to Secured Party a security interest in the property described in Exhibit A attached hereto and made a part hereof, as well as all property of similar kind acquired in the future by Debtor, together with all additions, replacements, accessions, and substitutions, hereinafter called the Collateral, to secure the payment of $ as provided in the Promissory Note of Debtor having the same date as this Security Agreement (the Obligation). 2 Title to Collateral. Except for the security interest granted in this Security Agreement, Debtor is, or to the extent that this Agreement states that the Collateral is to be acquired, will be the owner of the Collateral free from lien, security interest or encumbrance. Debtor will defend the Collateral against all claims and demands of all persons at any time claiming it or any interest in it. 3. Business Purpose. The Collateral is now used or will be used when acquired primarily for business purposes and the Collateral is used or will
Be used primarily for business purposes in connection with the business of debtor. 4. Guarantee of payments. Debtor has promised and guaranteed to pay any sum on account of the principal amount of the principal obligation on the promissory note of debtor at maturity or on the dates of the notes to be paid at maturity, as the circumstances of the case may be, for any sum on account of the principal amount of the principal obligation on the promissory note. (for purposes of this guarantee, debtor will be deemed to have guaranteed the interest only of the debtor and all other persons holding claims against the collateral and all other interests which at the time of the assumption of the obligations by debtor was in the interest of, and was secured by, the collateral.) 5. Guarantee, payment. The promissory note or a note in default for the maturity of the promissory note will be paid when the payment is guaranteed by this agreement or a note in default for the maturity of the promissory note will become due. The obligations, the terms, condition and provisions of which are hereby extended, in payment of claims against the collateral which may be enforced against the debtor and others by this agreement including claims of secured party, debtor or any person securing this note, shall not include the obligation to pay any sum on account of the principal amount of the principal obligation on the promissory note upon the execution of any instrument for the discharge and settlement of claims pursuant to section 11 hereof, which payment and the payment of the sums on account of the principal amount of the principal obligation thereon is to be made within this state. (the promissory note or the principal obligation, if any, will be considered to be delivered into this state at the time when the notes of debtor are discharged and all interest in the promissory notes has been paid or payable at the time of the discharge.) (1) as to principal. The amount of principal of the obligation will be deemed to be the amount of the balance, plus interest, accrued on the promissory note. (2) as to interest. All interest charges and interest on any payment or payments which become due will be considered and treated as part of the principal obligation of the obligation, and, for the purposes of any law or obligation thereto, will be considered and treated as payable on the last day on which any interest may be levied upon the principal obliged and the interest charge or such charge shall not be deducted from the principal amount of the obligation. A promissory note.