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Security Agreement and Promissory Note
This Security Agreement and Promissory Note (the “Agreement”) is made and effective this 4th day of April, 2019,
For value received, the undersigned Debtor, promises to pay to the order of [NAME], together with any other holder of this note (“Secured Party”), at its office at [ADDRESS], [AMOUNT], with interest at the rate of [%] per annum.
Payment shall be made in successive equal monthly installments of [AMOUNT ], except the final Installment, which shall be the balance due on this note.
Each such Installment is payable on the [DAY ] of each month, commencing on [DATE]. 1. SECURITY To secure the payment of this note
[IF APPROPRIATE, ADD: AND ALL OTHER OBLIGATIONS OF DEBTOR TO SECURED PARTY, ITS SUCCESSORS AND ASSIGNS, HOWEVER CREATED, WHETHER DIRECT OR INDIRECT, ABSOLUTE OR CONTINGENT, OR NOW OR LATER EXISTING, DEBTOR GRANTS TO SECURED PARTY A SECURITY INTEREST IN THE FOLLOWING PROPERTY
AND ALL ACCESSORIES, PARTS, AND EQUIPMENT NOW OR LATER AFFIXED TO THE SAME: (DESCRIBE COLLATERAL)].
[IF APPROPRIATE, ADD: TO FURTHER SECURE THE PAYMENT OF THIS NOTE, SECURED PARTY SHALL HAVE A LIEN ON AND RECOURSE TO ANY PROPERTY BELONGING TO DEBTOR THAT NOW OR LATER IS IN THE POSSESSION OR CONTROL OF SECURED PARTY. ]
Such property shall be in this agreement collectively referred to as “Collateral.” 2. WARRANTIES AND COMMITMENTS Debtor warrants and agrees that:
3. USE OF COLLATERAL Until default under this note and agreement, Debtor may have possession of Collateral and use the same in any lawful manner not inconsistent with this note and agreement or with any policy of insurance on any of Collateral. 4. REIMBURSEMENT OF EXPENSES Secured party may perform any obligation of Debtor under this agreement that Debtor fails to perform, and Secured Party may take any other action that Secured Party deems necessary for the maintenance or preservation of any of the Collateral or the interest of Secured Party in Collateral.
Debtor shall immediately reimburse Secured Party for all expenses incurred by Secured Party in connection with the foregoing, together with interest at the rate of [%] per annum from the date incurred. 5. DELINQUENT PAYMENTS Debtor shall pay late charges of [CENTS ] per [DOLLAR ] on any Installment more than [NUMBER ] days delinquent and shall pay interest on the unpaid balance of this note, after such balance becomes due as in this agreement provided, at the highest lawful rate. 6. REFUND CREDIT On payment by Debtor of the balance due before the scheduled maturity of this note, a refund credit shall be granted if and to the extent provided by law. 7. DEFAULT The occurrence of any of the following events shall constitute a default:
8. REMEDIES On any default under this agreement, all remaining installments on the note shall, at the option of Secured Party, become immediately due and payable, and Secured Party may exercise at any time any rights and remedies available to it under [CITE LAW].
Debtor shall, in case of default, assemble at the expense of Debtor all of Collateral at a convenient place acceptable to Secured Party and shall pay all
costs incurred by Secured Party in collecting note and enforcing the rights of Secured Party under this agreement, including reasonable attorney fees and legal expenses and expenses of any repairs to any real or other property to which any of Collateral may be affixed. To the extent that notice of intended disposition of any of Collateral is required by law, such notice, if mailed, shall be deemed reasonably and properly given if mailed at least [NUMBER ] days before such disposition, postage prepaid, addressed to Debtor at the location appearing on the records of Secured
Party. Any proceeds of any disposition of any of Collateral may be applied by Secured Party, after satisfaction of the obligation represented by this note, to the payment of expenses in connection with Collateral, including reasonable attorney fees and legal expenses. Any balance of such proceeds may be applied by Secured Party to the payment of other liabilities of Debtor to Secured Party, and in such order of application, as Secured Party may from time to time elect. 9. CONFESSION OF JUDGMENT To further secure payment of this note, Debtor irrevocably authorizes any attorney of any court of record to appear for Debtor at any time after payment is due, whether by acceleration or otherwise, and confess judgment, without process, in favor of Secured Party.
Judgment may be entered for such amount as may be unpaid under this note, together with costs of such proceedings and attorney fees [%] of the amount unpaid under this note. Debtor waives and releases all errors that may occur in any such proceeding and consents to immediate execution on such judgment, ratifying and confirming all that such attorney may do by virtue of this note and agreement. 10. NOTICE Debtor waives presentment, demand, notice of dishonor, protest and all other notices whatsoever.
Secured party may from time to time extend or renew the note for any period, regardless of whether for a longer period than the original period of the note, and grant any releases, compromises or indulgences with respect to the note, any extension or renewal of the note or any security for the note or to any party liable under the note or this agreement, all without notice to or consent of Debtor and without affecting the liability of Debtor under this note and agreement. 11. WAIVER No delay by Secured Party in the exercise of any right or remedy under this note and agreement shall operate as a waiver of the same, and no single or partial exercise by Secured Party of any such right or remedy shall preclude other or further exercise of the same or the exercise of any other right or remedy. 12. CONSTRUCTION AND EFFECT This combined note and security agreement has been delivered at [FULL ADDRESS ] and shall be construed in accordance with [CITE LAW ]. Whenever possible, each provision of this note and agreement shall be interpreted in such manner as to be effective and valid under applicable law; however, if any such provision shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this note and agreement. The rights and privileges of Secured Party under this note and agreement shall inure to the benefit of its successors and assigns. IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at [PLACE OF EXECUTION ] on the date indicated below.
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