security agreement
security agreement, defined:
an agreement between a borrower (debtor) and a lender (creditor), granting the creditor (a security interest) the right to seize the property specified in the agreement.
security agreement, as it might be used:
A security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors.
An example of security agreement:
Fergus and Fiona are shopping for a new car when they spot the perfect model. They negotiate terms with the car dealer and secure financing through their credit union. The loan documents create a security agreement. The credit union pays the dealer and takes the title to hold as collateral until Fergus and Fiona have paid off the loan.
|
|
|
Clear-Point Law Dictionary
