The Inventory Security Agreement is utilized when a business seeks to obtain financing using its inventory as collateral. This document, crucial in Philippine commercial practice, establishes the legal framework for creating and perfecting a security interest in inventory under the Personal Property Security Act (PPSA). It becomes necessary when companies need working capital or other financing while maintaining operational flexibility to manage and sell their inventory. The agreement details the scope of the security interest, inventory management requirements, borrower's obligations for maintenance and reporting, and the lender's rights in case of default. It must comply with Philippine secured transactions law, including PPSA registration requirements, and typically forms part of a larger financing arrangement. The document is particularly important in industries with significant inventory holdings, where traditional fixed asset security may be insufficient or impractical.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identifies the secured party (creditor) and the grantor (debtor), including their complete legal names, addresses, and registration details
2. Background: Explains the context of the security arrangement, including any related loan or credit facility agreements
3. Definitions: Defines key terms used throughout the agreement, including specific inventory-related terminology and PPSA-specific concepts
4. Grant of Security Interest: Explicitly creates the security interest over the inventory, describing the collateral in compliance with PPSA requirements
5. Representations and Warranties: Grantor's declarations regarding ownership, authority to grant security, and status of the inventory
6. Covenants: Ongoing obligations of the grantor regarding maintenance, insurance, reporting, and handling of the inventory
7. Perfection Requirements: Steps required to perfect the security interest, including registration requirements under PPSA
8. Use and Disposal of Inventory: Terms governing the grantor's rights to deal with the inventory in the ordinary course of business
9. Events of Default: Circumstances that constitute default under the agreement
10. Enforcement Rights: Secured party's rights and remedies upon default, including taking possession and disposal of inventory
11. Notices: Requirements for giving notices under the agreement
12. General Provisions: Standard clauses including governing law, jurisdiction, amendments, and assignments
1. Intercreditor Provisions: Required when multiple creditors have security interests in the same inventory, establishing priorities and relationships between creditors
2. Third Party Warehouse Arrangements: Needed when inventory is stored with third party warehouses, including access rights and warehouse receipt requirements
3. Foreign Currency Provisions: Required when the secured obligations or inventory values are denominated in foreign currency
4. Insurance Trust Provisions: Optional section for detailed insurance arrangements where insurance proceeds are held in trust
5. Consignment Arrangements: Required when inventory includes goods held on consignment
6. Electronic Records and Monitoring: Optional provisions for electronic inventory tracking and reporting systems
1. Schedule A - Inventory Description: Detailed description of the covered inventory, including categories, locations, and identification methods
2. Schedule B - Permitted Locations: List of approved locations where the inventory may be stored
3. Schedule C - Existing Security Interests: Details of any pre-existing security interests affecting the inventory
4. Schedule D - Approved Buyers: If applicable, list of pre-approved buyers for inventory sold in ordinary course of business
5. Schedule E - Insurance Requirements: Specific insurance requirements including types of coverage, minimum amounts, and named insureds
6. Appendix 1 - Form of Inventory Report: Template for periodic inventory reporting
7. Appendix 2 - Form of Notice of Security Interest: Template for notices to third parties regarding the security interest
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Wholesale Distribution
Agriculture
Automotive
Electronics
Food and Beverage
Pharmaceutical
Textiles
Construction Materials
Consumer Goods
Relevant Teams
Legal
Finance
Treasury
Operations
Warehouse Operations
Risk Management
Compliance
Supply Chain
Credit Administration
Collateral Management
Commercial Banking
Security
Relevant Roles
Chief Financial Officer
Treasury Manager
Finance Director
Inventory Manager
Warehouse Manager
Credit Risk Manager
Commercial Lending Officer
Legal Counsel
Compliance Officer
Supply Chain Manager
Operations Director
Corporate Security Officer
Collateral Manager
Business Development Manager
Find the exact document you need
Pledge Agreement (Real Estate)
A Philippine law-governed security agreement where real property is pledged as collateral to secure a debt or obligation.
find out more
Membership Pledge Agreement
A Philippine law-governed agreement that establishes formal membership terms, rights, and obligations between an organization and its members.
find out more
Motor Vehicle Security Agreement
A Philippine law-governed agreement establishing a security interest in a motor vehicle as collateral for a loan or financial obligation.
find out more
Security Interest Contract
A Philippine law-governed agreement creating a security interest in assets to secure an obligation, subject to the Personal Property Security Act and related legislation.
find out more
Real Estate Security Agreement
A Philippine law-governed agreement creating a security interest over real property as collateral for a loan or obligation.
find out more
Personal Information Confidentiality Agreement
A Philippine law-compliant agreement establishing confidentiality obligations for handling personal information, aligned with the Data Privacy Act of 2012.
find out more
Security Agreement For Promissory Note
A Philippine law-governed security agreement that creates a security interest in collateral to secure obligations under a promissory note.
find out more
Stock Transfer Agreement Gift
A Philippine law-compliant agreement for the gratuitous transfer of corporate shares from a donor to a donee, incorporating necessary tax and regulatory requirements.
find out more
Security Deposit Agreement
A Philippine law-governed agreement establishing terms for handling, maintaining, and returning a security deposit between parties, typically used in property rental or service arrangements.
find out more
Penetration Testing Confidentiality Agreement
A Philippine-law governed agreement establishing confidentiality terms and authorized activities for cybersecurity penetration testing services.
find out more
Data Privacy Contract
A Philippine law-compliant contract governing personal data processing arrangements between parties, aligned with the Data Privacy Act of 2012.
find out more
Collateral Substitution Agreement
A Philippine law-governed agreement enabling the substitution of loan collateral while maintaining security interest continuity and regulatory compliance.
find out more
Agreement To Exclude Security Of Tenure
A Philippine law-compliant agreement that establishes fixed-term employment by excluding security of tenure provisions, subject to Labor Code requirements.
find out more
Security Agreement Contract
A Philippine law-governed agreement creating security interests over collateral to secure obligations, complying with the Personal Property Security Act.
find out more
Stock Collateral Loan Agreement
A Philippine law-governed agreement establishing terms for a loan secured by shares of stock, including collateral arrangements and enforcement mechanisms.
find out more
Stock Pledge And Security Agreement
A Philippine law-governed agreement creating a security interest over shares of stock as collateral for securing obligations.
find out more
Tri Party Collateral Agreement
A Philippine law-governed agreement establishing arrangements between three parties for the management and custody of collateral assets.
find out more
Purchase Money Security Agreement
A Philippine law-governed agreement creating a security interest in purchased property, establishing purchase terms and secured party's rights under the Personal Property Security Act.
find out more
Loan Against Shares Agreement
A Philippine law-governed agreement establishing terms for a loan secured by shares as collateral, detailing pledge arrangements and security mechanisms.
find out more
Note And Security Agreement
A Philippine law-governed agreement combining loan terms and security arrangements, establishing both debt obligations and collateral rights.
find out more
Debenture Trustee Agreement
A Philippine law-governed agreement appointing and establishing the duties of a trustee to protect debenture holders' interests in a debenture issuance.
find out more
Irrevocable Pledge Agreement
A Philippine law-governed security agreement creating an irrevocable pledge over specific assets as collateral for securing obligations.
find out more
Guaranty And Security Agreement
A Philippine law-governed agreement combining a personal guarantee with security interests in collateral to secure obligations, subject to local secured transactions laws.
find out more
Global Master Repurchase Agreement
A master agreement for repurchase transactions in the Philippines, compliant with BSP and SEC regulations, governing securities financing between financial institutions.
find out more
Equipment Security Agreement
A Philippine law-governed agreement creating security interests in equipment as collateral for loans or obligations, regulated under the Personal Property Security Act.
find out more
Auto Loan Security Agreement
A Philippine law-governed agreement creating a security interest in a financed vehicle, establishing loan terms and collateral arrangements under local banking and consumer protection regulations.
find out more
Personal Security Agreement
A legally-binding agreement under Philippine law that establishes terms and conditions for security service provision, ensuring compliance with RA 5487 and related regulations.
find out more
Omnibus Loan And Security Agreement
A Philippine law-governed agreement combining multiple loan facilities and security arrangements into a single comprehensive financing document.
find out more
Collateral Account Control Agreement
A Philippine law-governed agreement establishing control over a bank account as collateral security between an account holder, secured party, and deposit bank.
find out more
Collateral Account Agreement
A Philippine law-governed agreement establishing security over a bank account and its contents, setting out control and enforcement rights.
find out more
Chattel Security Agreement
A Philippine law-governed agreement creating security interests in personal property (chattel) to secure obligations, regulated under the Personal Property Security Act.
find out more
Account Control Agreement Collateral
A Philippine law-governed tripartite agreement establishing control over deposit accounts as collateral security, enabling perfection of security interests under local law.
find out more
Retail Installment Contract And Security Agreement
A Philippine law-governed agreement combining retail installment sales terms with security provisions for consumer goods purchases, ensuring seller protection and compliance with local consumer protection laws.
find out more
Subordinated Creditors Security Agreement
A Philippine law-governed agreement establishing security interests and creditor priorities in secured financing arrangements, regulating relationships between senior and subordinated creditors.
find out more
Personal Loan Contract With Collateral
A Philippine law-governed agreement establishing terms for a personal loan secured by collateral, including security interest provisions and regulatory compliance requirements.
find out more
Shareholder Agreement Transfer Of Shares
A Philippine law-governed agreement documenting the transfer of shares between shareholders, setting out terms, conditions, and regulatory compliance requirements.
find out more
Stock Transfer Restriction Agreement
A Philippine law-governed agreement that establishes restrictions and procedures for corporate share transfers, protecting existing shareholders' interests and maintaining ownership control.
find out more
Third Party Collateral Agreement
A Philippine law-governed agreement where a third party provides their assets as collateral to secure another party's obligations to a creditor.
find out more
Security Control Agreement
A Philippine-law governed agreement establishing security control measures and compliance requirements, ensuring alignment with local data protection and cybersecurity regulations.
find out more
Key Holding Agreement
A Philippine-compliant agreement establishing terms for professional key custody services, including security protocols and liability arrangements.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)