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The Commercial Security Agreement is a crucial legal instrument used in German commercial transactions to create and document security interests over assets. It is commonly used when a party needs to provide collateral to secure financial obligations, such as loans, credit facilities, or other commercial arrangements. The agreement must comply with strict German legal requirements, particularly those set out in the German Civil Code (BGB) and Commercial Code (HGB). It includes detailed provisions on the nature and scope of the security interest, perfection requirements, enforcement mechanisms, and the rights and obligations of all parties involved. This document is essential in commercial financing transactions and requires careful consideration of German property law principles, security interest regulations, and insolvency laws.

1. Parties: Identification of the security provider (Sicherungsgeber) and security taker (Sicherungsnehmer), including full legal names, registration details, and addresses

2. Background: Context of the security agreement, reference to any underlying obligations or master agreements, and purpose of the security

3. Definitions: Definitions of key terms used throughout the agreement, including specific German legal terminology where applicable

4. Grant of Security Interest: Express creation and grant of the security interest, specifying the type of security under German law (e.g., pledge, assignment, transfer of title)

5. Secured Obligations: Detailed description of the obligations being secured, including reference to underlying agreements and future obligations if applicable

6. Description of Collateral: Precise identification and description of the assets subject to the security interest, meeting German law requirements for specificity

7. Perfection Requirements: Steps required to perfect the security interest under German law, including registration requirements and notice obligations

8. Representations and Warranties: Statements regarding ownership, authority, and status of the collateral

9. Covenants: Ongoing obligations regarding maintenance, insurance, and use of the collateral

10. Events of Default: Circumstances constituting default and triggering enforcement rights

11. Enforcement Rights: Rights and procedures for enforcing the security interest in compliance with German law

12. Notices: Requirements and procedures for giving notices under the agreement

13. Governing Law and Jurisdiction: Explicit choice of German law and jurisdiction provisions