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A Security Agreement lets a lender protect their interests when giving out loans or credit in New Zealand. It's a legally binding contract that gives the lender rights over specific assets (called "collateral") if the borrower can't pay back what they owe.

Under the Personal Property Securities Act 1999, these agreements must clearly identify the secured assets and outline the lender's rights. Banks commonly use them for business loans, while retailers often rely on them for hire purchase deals. Once registered on the PPSR (Personal Property Securities Register), the agreement helps establish priority among different creditors who might have claims on the same assets.

Use a Security Agreement when lending money or providing goods on credit and you need to protect your financial interests. This agreement becomes essential for business loans, equipment financing, or retail purchases where you're extending credit and want specific assets as backup.

The timing is crucial - put the Security Agreement in place before releasing any funds or goods. For maximum protection in New Zealand, register it on the PPSR immediately after signing. This step becomes particularly important when dealing with valuable assets like vehicles, machinery, or business inventory, as it establishes your legal claim ahead of other potential creditors.

• General Security Agreement: Covers all present and future assets of a business, offering the broadest protection for lenders
• Mortgage And Security Agreement: Specifically designed for real estate lending, securing loans against property
• Security Lending Agreement: Used for temporary transfer of securities between financial institutions
• Personal Loan Contract With Collateral: Tailored for individual borrowers, securing personal assets against loans
• Reverse Repurchase Agreement: For short-term lending where securities serve as collateral with buyback provisions

• Banks and Financial Institutions: Primary users who create Security Agreements when lending money to businesses or individuals
• Business Owners: Sign these agreements when securing business loans, often pledging company assets as collateral
• Corporate Lawyers: Draft and review agreements to ensure compliance with NZ's Personal Property Securities Act
• Equipment Finance Companies: Use them for lease arrangements and asset financing deals
• Retail Chains: Implement these for hire purchase arrangements with customers
• Property Developers: Rely on these agreements when securing construction or development financing

• Asset Details: Gather complete descriptions of all collateral, including serial numbers, locations, and current value
• Party Information: Collect legal names, addresses, and registration numbers of all borrowers and guarantors
• Loan Terms: Document the exact amount, interest rates, payment schedule, and default conditions
• Existing Claims: Check the PPSR for any prior security interests against the assets
• Registration Plan: Prepare PPSR registration details to protect your priority
• Documentation: Use our platform to generate a legally compliant agreement that includes all mandatory elements under NZ law

• Party Details: Full legal names, addresses, and company registration numbers of all parties involved
• Collateral Description: Clear identification of secured assets, including serial numbers and locations
• Security Interest: Explicit grant of security interest under the Personal Property Securities Act 1999
• Payment Terms: Detailed repayment schedule, interest rates, and default conditions
• Enforcement Rights: Specific powers of the secured party upon default
• PPSR Consent: Authorization for registration on the Personal Property Securities Register
• Execution Block: Proper signature sections with witness requirements

Security Agreements are often confused with Asset Purchase Agreements, but they serve distinctly different purposes in New Zealand business transactions. While both involve assets, their fundamental functions differ significantly.

• Purpose: Security Agreements create a lender's right over assets as collateral for a loan, while Asset Purchase Agreements transfer ownership of assets from seller to buyer
• Duration: Security Agreements remain active until the loan is repaid, whereas Asset Purchase Agreements complete the transaction at settlement
• Legal Effect: Security Agreements establish a security interest under the PPSA, while Asset Purchase Agreements transfer full legal title
• Registration Requirements: Security Agreements typically require PPSR registration; Asset Purchase Agreements generally don't
• Risk Profile: Security Agreements protect against borrower default, while Asset Purchase Agreements manage transfer risks and warranties