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Security Interest Agreement
"Need a Security Interest Agreement to secure a R50 million term loan facility from Standard Bank, creating security over our manufacturing equipment and inventory in our Johannesburg facility, to be executed by March 2025."
1. Parties: Identification of the security provider (grantor) and security taker (secured party)
2. Background: Context of the security arrangement and reference to underlying obligations
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Grant of Security Interest: Express creation and grant of the security interest over the collateral
5. Secured Obligations: Definition and scope of the obligations being secured
6. Representations and Warranties: Security provider's representations regarding ownership, authority, and status of collateral
7. Perfection Requirements: Requirements for registration and perfection of the security interest
8. Maintenance of Collateral: Obligations regarding maintenance and preservation of the collateral
9. Events of Default: Circumstances constituting default under the agreement
10. Enforcement: Rights and remedies upon default, including power of sale
11. Costs and Expenses: Allocation of costs related to creation, registration, and enforcement
12. Notices: Communication requirements and contact details
13. General Provisions: Standard boilerplate clauses including governing law and jurisdiction
1. Multiple Creditors: Required when there are multiple secured parties, addressing ranking and intercreditor relationships
2. Insurance: Required when insurance of the collateral is necessary, detailing requirements and rights
3. Power of Attorney: Optional clause granting power of attorney for perfection or enforcement
4. Further Assurance: Optional clause requiring additional actions to perfect or maintain security
5. Release Provisions: Required when partial release of security might be contemplated
6. Tax Provisions: Required when specific tax implications need to be addressed
7. Currency Provisions: Required for cross-border transactions or multiple currency obligations
1. Schedule 1 - Description of Collateral: Detailed description of all assets subject to the security interest
2. Schedule 2 - Secured Obligations: Detailed description of all obligations being secured
3. Schedule 3 - Permitted Encumbrances: List of pre-existing or permitted security interests over the collateral
4. Schedule 4 - Form of Notice: Template notices for perfection requirements (e.g., notice to debtors for receivables)
5. Schedule 5 - Registration Requirements: Specific registration requirements for different asset classes
6. Appendix A - Required Forms: Standard forms required for registration or perfection
7. Appendix B - Power of Attorney: Form of power of attorney if required
Authors
Banking
Financial Services
Real Estate
Manufacturing
Mining
Agriculture
Retail
Construction
Technology
Transportation
Energy
Healthcare
Legal
Finance
Risk Management
Compliance
Treasury
Credit
Corporate Secretariat
Commercial
Security Administration
Loan Administration
Legal Counsel
Corporate Lawyer
Finance Manager
Chief Financial Officer
Risk Manager
Credit Manager
Compliance Officer
Transaction Manager
Security Trustee
Corporate Secretary
Commercial Director
Treasury Manager
Loan Officer
Contract Administrator
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