The Security Agreement/Pledge Agreement gives the bank a security interest in the collateral and states that the bank can repossess the property held as collateral if the loan is not paid as agreed.
This documentation is required when the loan is secured, with the exception being, loans secured by real estate without a mobile home.
Documentation is included with the loan package provided by Loan Doc Prep.
- Consumer Security Agreement or Commercial Security Agreement on non-possessory collateral (for example: auto, equipment)
- Consumer Pledge Agreement or Commercial Pledge Agreement on possessory collateral (for example: stock)
Completed:
The Security/Pledge Agreement must include:
- Signature(s) of all owners of collateral
- Complete, specific and accurate description of collateral
Collateral Description Example:
Blanket language:
All Inventory, Accounts and Equipment in the name of _______________________; whether any of the foregoing is owned now or acquired later, all accessions, additions, replacements, and substitutions relating to any of the foregoing; all records of any kind relating to any of the foregoing; all proceeds relating to any of the foregoing (including insurance, general intangibles and other accounts proceeds).
Specific item:
Yr – Make – Model – What – Serial #
1999 Ford 2100 Tractor, Serial #1234567
Consequences:
If a valid Security/Pledge Agreement is not obtained, the security interest is not enforceable. The loan may be considered unsecured.
Once completed, the Security Agreement/ Pledge Agreement document is uploaded to Synergy (consumer purpose) or Abrigo (business purpose). If all documents are wet signed, send to loan servicing in the designated bag.
If you need additional assistance Abrigo, please contact _Abrigo Help.