Security Agreement
The contract between a borrower and lender that creates a security interest in specific collateral, giving the lender a legal claim to that collateral if the loan defaults.
A security agreement is the underlying contract that establishes a lender’s rights to collateral, while a UCC-1 filing is the public record of that agreement, so the two work together, the agreement creates the claim and the filing publicizes it.
Reviewing exactly what’s pledged as collateral under a security agreement, and under what conditions the lender can act on it, is a key part of understanding any secured financing offer.
Related Terms
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.