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Commercial Security Agreement
"I need a Commercial Security Agreement for my manufacturing company in Melbourne to secure a $2.5M equipment loan from ANZ Bank, with the security interest to be granted over our existing and future manufacturing equipment and inventory, to be effective from March 1, 2025."
1. Parties: Identification of the Secured Party and Grantor, including full legal names, ACN/ABN, and addresses
2. Background: Context of the security arrangement, reference to any underlying commercial relationships or agreements
3. Definitions: Defined terms including those aligned with PPSA terminology, secured obligations, and collateral definitions
4. Grant of Security Interest: Express creation of the security interest, scope, and attachment provisions
5. Secured Obligations: Description of the obligations being secured, including present and future debts
6. Representations and Warranties: Grantor's declarations regarding ownership, authority, and status of collateral
7. Undertakings: Grantor's ongoing obligations regarding maintenance, insurance, and dealing with collateral
8. Default Events: Comprehensive list of events triggering enforcement rights
9. Enforcement: Rights and powers of the Secured Party upon default, including PPSA enforcement provisions
10. Power of Attorney: Appointment of Secured Party as attorney for enforcement purposes
11. PPSA Provisions: Specific provisions required under the PPSA including registration and notices
12. General Provisions: Standard boilerplate clauses including notices, governing law, and interpretation
1. Third Party Rights: Required when third parties have interests in the collateral or where consents are needed
2. Special Collateral Provisions: Used for specific types of collateral like intellectual property or investment instruments
3. Cross-Collateralization: Needed when security interest secures obligations under multiple agreements
4. Priority Arrangements: Required when there are multiple secured parties or priority agreements
5. Custodian Provisions: Needed when a third party holds or controls the collateral
6. Foreign Law Components: Required when collateral is located in multiple jurisdictions
7. Guarantee Provisions: Include when the security agreement incorporates a guarantee component
1. Schedule 1 - Collateral Description: Detailed description of all secured property including serial numbered goods
2. Schedule 2 - Secured Obligations: Detailed list of secured obligations and underlying agreements
3. Schedule 3 - Permitted Security Interests: List of pre-existing or permitted security interests over the collateral
4. Schedule 4 - Locations of Collateral: List of all locations where collateral is or may be held
5. Schedule 5 - Form of Notice: Template notices for enforcement or other required notifications
6. Appendix A - PPSA Registration Details: Details of PPSA registrations including timing requirements
7. Appendix B - Verification Procedures: Procedures for verifying and maintaining collateral status
Authors
Account
After-Acquired Property
Authorisation
Business Day
Circulating Asset
Collateral
Commingled Goods
Controlled Account
Default Event
Default Rate
Disposal
Enforcement Event
Equipment
Financial Property
Financing Change Statement
Financing Statement
Future Property
Grantor
Guarantee
Insolvency Event
Intellectual Property
Interest Rate
Investment Instrument
Law
Marketable Securities
Material Adverse Effect
Monetary Obligation
Nominated Account
Notice
Permitted Security Interest
PMSI
Power of Attorney
PPSA
PPSR
Proceeds
Receiver
Related Entity
Secured Money
Secured Obligations
Secured Party
Securities
Security Interest
Security Period
Serial Numbered Goods
Subsidiary
Transaction Documents
Trust
Verification Statement
Representations and Warranties
Undertakings
Secured Obligations
Priority
Registration and Perfection
Dealing with Collateral
Insurance
Default Events
Enforcement
Power of Attorney
Receiver Appointment
PPSA Compliance
Assignments and Transfers
Further Assurance
Confidentiality
Notices
Set-off
Costs and Expenses
Indemnity
Amendment and Waiver
Severability
Governing Law
Jurisdiction
Counterparts
Third Party Rights
Time of Essence
Entire Agreement
Banking and Financial Services
Commercial Lending
Asset Finance
Equipment Leasing
Manufacturing
Retail
Wholesale Trade
Construction
Agriculture
Mining
Technology
Professional Services
Legal
Finance
Risk Management
Compliance
Commercial Operations
Credit
Treasury
Corporate Services
Business Development
Contract Administration
Legal Counsel
Commercial Lawyer
Finance Manager
Credit Manager
Risk Officer
Compliance Officer
Commercial Director
Chief Financial Officer
Security Trustee
Loan Officer
Transaction Manager
Corporate Secretary
Business Development Manager
Contract Administrator
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