Security Agreement
(Personal Property, Commercial Real Estate, Short Form) (CA)

Summary

This template is a short form security agreement for use in commercial real estate financing transactions in California. This agreement grants the lender a security interest in the borrower's personal property under Article 9 of the California Uniform Commercial Code. This template includes practical guidance, drafting notes, and alternate and optional clause. The loan document package for a commercial real estate financing transaction in California will typically include a standalone security agreement. In this template, the borrower grants the lender a security interest in the borrower's personal property as additional security for the repayment of the indebtedness. This grant is governed by Article 9 of the California Uniform Commercial Code (UCC), Cal U Com Code Div. 9 et seq. If the borrower defaults, this agreement allows the lender to take possession of the borrower's personal property, sell it, and apply the proceeds toward the outstanding indebtedness. Modify the defined terms in this agreement as needed to conform to those in the loan documents for the specific transaction. For further guidance on commercial real estate financing transactions in California, see Commercial Real Estate Acquisition Loan Resource Kit (CA). For more on perfecting security interests, see Perfecting Security Interests by Possession, Filing, and Control. For information on UCC filings in California, see UCC Financing Statements, Fixture Filings, and Amendments (CA). For a template of a short form security agreement that favors the lender, see Security Agreement (Short Form) (Pro-Lender). For a template of a long form security agreement, see Security Agreement.