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Personal Property Security Agreement
"I need a Personal Property Security Agreement for our company (as lender) to secure a NZD 500,000 loan against the borrower's manufacturing equipment and inventory, with the loan to be advanced by March 2025."
1. Parties: Identifies and defines the secured party and the grantor/debtor, including full legal names and addresses
2. Background: Sets out the context of the security agreement, including any related financing arrangements
3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation rules, including PPSA-specific terminology
4. Grant of Security Interest: Establishes the security interest being granted over the collateral, ensuring compliance with PPSA requirements
5. Secured Obligations: Specifies the obligations being secured, including any payment obligations, performance requirements, and other secured liabilities
6. Representations and Warranties: Sets out the grantor's confirmations regarding ownership, authority, and status of the collateral
7. Grantor Covenants: Details the ongoing obligations of the grantor regarding maintenance, insurance, and use of the collateral
8. Events of Default: Lists circumstances that constitute default under the agreement
9. Enforcement: Outlines the secured party's rights and remedies upon default, consistent with PPSA provisions
10. PPSA Provisions: Specific provisions required under the PPSA, including registration rights and maintenance of perfection
11. General Provisions: Standard contractual terms including notices, amendments, governing law, and dispute resolution
1. Accessions and Processed Goods: Required when collateral may become an accession or be subject to manufacturing/processing
2. Third Party Provisions: Needed when third parties have interests in or rights over the collateral
3. Cross-Collateralization: Used when security interest secures obligations under multiple agreements
4. Priority Arrangements: Required when there are multiple secured parties or priority agreements
5. Special Terms for Consumer Goods: Required when the collateral includes consumer goods, incorporating CCCFA requirements
6. Intellectual Property Rights: Needed when collateral includes or relates to intellectual property
7. Insurance and Loss Provisions: Detailed insurance requirements and loss handling procedures for high-value collateral
1. Schedule 1 - Collateral Description: Detailed description of all collateral subject to the security interest
2. Schedule 2 - Secured Obligations: Detailed list of all secured obligations, including referenced agreements
3. Schedule 3 - Permitted Security Interests: List of any pre-existing or permitted security interests over the collateral
4. Schedule 4 - Special Terms and Conditions: Any special terms or conditions specific to the collateral or security arrangement
5. Appendix A - Form of Notice: Template notices for enforcement or other formal communications
6. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage specifications
7. Appendix C - Operating Requirements: Specific requirements for operation, maintenance, or storage of collateral
Authors
Financial Services
Banking
Manufacturing
Retail
Agriculture
Construction
Technology
Transport and Logistics
Equipment Leasing
Wholesale Trade
Mining and Resources
Professional Services
Legal
Finance
Risk Management
Credit
Compliance
Treasury
Commercial Banking
Asset Finance
Operations
Business Development
Contract Administration
Chief Financial Officer
Finance Manager
Legal Counsel
Commercial Lawyer
Credit Manager
Risk Manager
Security Trustee
Loan Officer
Commercial Banking Manager
Asset Finance Manager
Compliance Officer
Corporate Treasurer
Business Development Manager
Contract Administrator
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