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Personal Property Security Agreement Template for England and Wales

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Key Requirements PROMPT example:

Personal Property Security Agreement

"I need a Personal Property Security Agreement under English law to secure a £500,000 loan against my client's manufacturing equipment and inventory, with the security to become effective from 1 March 2025 and include specific provisions for regular valuation of the secured assets."

Document background
A Personal Property Security Agreement is essential when a party needs to create a security interest over movable property in England and Wales. This document is commonly used in lending transactions where the lender requires security over the borrower's personal property as collateral. The agreement must comply with English law requirements, particularly the Bills of Sale Acts and relevant consumer protection legislation. It typically includes detailed descriptions of the secured property, representations about ownership, maintenance obligations, and enforcement provisions. The document is crucial for protecting the lender's interests while ensuring clear terms for the borrower.
Suggested Sections

1. Parties: Identification of secured party and debtor

2. Background: Context of the security arrangement

3. Definitions: Key terms used throughout the agreement

4. Grant of Security Interest: Core provision creating the security interest

5. Description of Collateral: Detailed description of secured property

6. Representations and Warranties: Statements about ownership and right to grant security

7. Covenants: Ongoing obligations regarding the secured property

8. Events of Default: Circumstances triggering enforcement rights

9. Enforcement Rights: Rights and remedies upon default

Optional Sections

1. Insurance Requirements: Requirements for insuring secured property when the collateral requires insurance protection

2. Further Assurance: Obligation to execute additional documents when future documentation might be needed

3. Power of Attorney: Authority to act on behalf of debtor when secured party needs authority to perfect security

Suggested Schedules

1. Schedule of Secured Property: Detailed list and description of all secured property

2. Form of Notice: Standard form notices for perfecting security

3. Permitted Disposals: List of allowed dispositions of secured property

4. Required Filings: List of necessary registrations and filings

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































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Industries

Bills of Sale Acts 1878 and 1882: Primary legislation governing security over tangible goods and personal chattels. Essential for personal property security agreements involving individuals granting security over personal property.

Consumer Credit Act 1974: Regulates credit agreements and provides consumer protection measures. Must be considered if the security agreement involves any form of consumer credit arrangement.

Financial Collateral Arrangements (No 2) Regulations 2003: Implements EU Directive 2002/47/EC, specifically dealing with security over financial collateral. Provides specific rules for financial collateral arrangements.

Sale of Goods Act 1979: Provides key definitions of goods and title. Essential for accurately describing and defining secured property within the agreement.

Insolvency Act 1986: Critical for understanding enforceability of security interests in insolvency scenarios and establishing priority rules.

Companies Act 2006: Relevant when either party is a company, particularly regarding registration requirements and corporate aspects of security.

Common Law Principles: Encompasses rules on creation and perfection of security interests, principles of equity and trust law, and rules governing priority and enforcement of security interests.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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