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Personal Property Security Agreement
"I need a Personal Property Security Agreement under German law for manufacturing equipment worth €2.5 million being used as collateral for a business loan, where the borrower needs to continue using the equipment during the security period and requires specific provisions for maintenance and insurance."
1. Parties: Identification of the secured party (creditor) and the grantor (debtor), including full legal names, addresses, and registration details if applicable
2. Background: Context of the security agreement, including reference to any underlying credit or loan agreement
3. Definitions: Key terms used throughout the agreement, including specific German legal terminology
4. Grant of Security Interest: Express creation of the security interest over the collateral
5. Description of Collateral: Detailed description of the personal property subject to the security interest
6. Representations and Warranties: Grantor's confirmations regarding ownership, condition, and status of the collateral
7. Obligations Secured: Description of the secured obligations, including principal debt and related amounts
8. Maintenance and Use of Collateral: Grantor's obligations regarding the care and permitted use of the collateral
9. Rights and Remedies: Secured party's rights in case of default, including enforcement procedures under German law
10. Events of Default: Circumstances constituting default under the agreement
11. Notices: Communication requirements and contact details for both parties
12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
1. Insurance Requirements: Specific insurance obligations for the collateral - include when collateral is of high value or particular risk
2. Third Party Consents: Requirements for obtaining third party approvals - include when collateral is subject to third party rights
3. Registration Requirements: Specific registration obligations - include when security interest requires public registration
4. Cross-Collateralization: Provisions extending security to other obligations - include when securing multiple obligations
5. Subordination Provisions: Priority arrangements with other creditors - include when there are multiple security interests
6. Currency Provisions: Currency conversion and payment terms - include for international transactions
7. Tax Provisions: Tax implications and responsibilities - include when tax considerations are significant
1. Schedule A - Collateral Description: Detailed technical description and identification of all collateral items
2. Schedule B - Permitted Locations: List of locations where collateral may be kept or used
3. Schedule C - Existing Security Interests: List of any pre-existing security interests or encumbrances
4. Schedule D - Serial Numbered Goods: Specific identification of serial numbered collateral items
5. Appendix 1 - Form of Notice: Template for required notices under the agreement
6. Appendix 2 - Insurance Requirements: Detailed insurance specifications and requirements
7. Appendix 3 - Registration Forms: Forms required for registering the security interest
Authors
Banking & Financial Services
Manufacturing
Equipment Leasing
Automotive
Industrial Equipment
Agriculture
Retail
Technology Hardware
Transportation & Logistics
Construction
Healthcare Equipment
Wholesale Trade
Legal
Finance
Risk Management
Compliance
Treasury
Credit Administration
Commercial Finance
Asset Management
Operations
Security Administration
Contract Management
Legal Counsel
Finance Director
Credit Manager
Risk Manager
Compliance Officer
Corporate Security Officer
Treasury Manager
Commercial Finance Manager
Asset Manager
Collateral Manager
Contract Administrator
Chief Financial Officer
Legal Operations Manager
Security Trustee Officer
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