SBA Form 2229 "Premier Certified Lenders Program Security Agreement"

What Is SBA Form 2229?

This is a legal form that was released by the U.S. Small Business Administration on April 1, 2003 and used country-wide. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on April 1, 2003;
  • The latest available edition released by the U.S. Small Business Administration;
  • Easy to use and ready to print;
  • Yours to fill out and keep for your records;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of SBA Form 2229 by clicking the link below or browse more documents and templates provided by the U.S. Small Business Administration.

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Download SBA Form 2229 "Premier Certified Lenders Program Security Agreement"

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PREMIER CERTIFIED LENDERS PROGRAM
SECURITY AGREEMENT
THIS SECURITY AGREEMENT (the “Agreement”) is made this day of
________ [Exact legal name of
, 20
, by and between
Premier CDC as it appears on its articles of incorporation or organization] , and the U.S.
Small Business Administration (“SBA”).
1.
AGREEMENT:
For value received, Premier CDC hereby grants to SBA a security interest (the
“Security Interest”) in the collateral described below to secure the payment and
performance of the obligations herein specified. Premier CDC also authorizes SBA,
without further notice to or consent by Premier CDC, to file any records necessary to
perfect, continue, amend, or terminate the Security Interest.
2.
OBLIGATION:
The obligation consists of Premier CDC’s agreement to reimburse SBA for 10%
of any loss (including attorney’s fees and litigation costs and expenses) sustained by SBA
as a result of a default in the payment of principal or interest on a Debenture issued by
Premier CDC under the Premier Certified Lenders Program (“PCLP”) (the “Obligation”).
The Obligation extends to reimbursement for any loss to SBA on a loan funded by the
issuance of such a Debenture.
3.
LOAN LOSS RESERVE FUND:
In accordance with the Small Business Investment Act of 1958, 15 U.S.C. § 697e,
as amended, and SBA regulations promulgated thereunder, Premier CDC must establish a
loss reserve (the Loan Loss Reserve Fund or “LLRF”) to provide funds to pay the
Obligation. The LLRF shall be comprised of segregated funds in a deposit account or
accounts at one or more federally insured depository institutions selected by Premier
CDC. The LLRF must total one percent of the original principal amount of the
Debentures which Premier CDC issues under the PCLP.
4.
COLLATERAL:
The collateral is Premier CDC’s LLRF (the “Collateral”).
5.
PREMIER CDC’S REPRESENTATIONS AND WARRANTIES:
Premier CDC represents and warrants that:
(a) Premier CDC is the legal and beneficial owner of the Collateral;
SBA Form 2229 (4/03)
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PREMIER CERTIFIED LENDERS PROGRAM
SECURITY AGREEMENT
THIS SECURITY AGREEMENT (the “Agreement”) is made this day of
________ [Exact legal name of
, 20
, by and between
Premier CDC as it appears on its articles of incorporation or organization] , and the U.S.
Small Business Administration (“SBA”).
1.
AGREEMENT:
For value received, Premier CDC hereby grants to SBA a security interest (the
“Security Interest”) in the collateral described below to secure the payment and
performance of the obligations herein specified. Premier CDC also authorizes SBA,
without further notice to or consent by Premier CDC, to file any records necessary to
perfect, continue, amend, or terminate the Security Interest.
2.
OBLIGATION:
The obligation consists of Premier CDC’s agreement to reimburse SBA for 10%
of any loss (including attorney’s fees and litigation costs and expenses) sustained by SBA
as a result of a default in the payment of principal or interest on a Debenture issued by
Premier CDC under the Premier Certified Lenders Program (“PCLP”) (the “Obligation”).
The Obligation extends to reimbursement for any loss to SBA on a loan funded by the
issuance of such a Debenture.
3.
LOAN LOSS RESERVE FUND:
In accordance with the Small Business Investment Act of 1958, 15 U.S.C. § 697e,
as amended, and SBA regulations promulgated thereunder, Premier CDC must establish a
loss reserve (the Loan Loss Reserve Fund or “LLRF”) to provide funds to pay the
Obligation. The LLRF shall be comprised of segregated funds in a deposit account or
accounts at one or more federally insured depository institutions selected by Premier
CDC. The LLRF must total one percent of the original principal amount of the
Debentures which Premier CDC issues under the PCLP.
4.
COLLATERAL:
The collateral is Premier CDC’s LLRF (the “Collateral”).
5.
PREMIER CDC’S REPRESENTATIONS AND WARRANTIES:
Premier CDC represents and warrants that:
(a) Premier CDC is the legal and beneficial owner of the Collateral;
SBA Form 2229 (4/03)
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(b) The Collateral is not subject to any liens, security interests, claims or
encumbrances other than the Security Interest granted to SBA and the rights
of a bank permitted under any control agreement entered into by Premier
CDC, SBA, and such bank;
(c) Premier CDC has the power and authority to execute, deliver and perform this
Agreement;
(d) Premier CDC has taken all necessary action to authorize the execution,
delivery and performance of this Agreement and has duly executed and
delivered this Agreement;
(e) This Agreement is Premier CDC’s valid and legally binding obligation,
enforceable against Premier CDC in accordance with its terms;
(f) The execution, delivery and performance of this Agreement does not and will
not violate the terms of any of Premier CDC’s governing documents, result in
the breach of any of Premier CDC’s material agreements or result in the
violation of any law, rule, regulation, order, judgment or decree to which
Premier CDC or its property is subject;
(g) This Agreement is effective to create a valid security interest in the Collateral,
prior to all security interests, liens or claims of any other persons or entities
other than claims of a bank permitted pursuant to a control agreement entered
into by Premier CDC, SBA and such bank;
(h) Premier CDC’s exact legal name is set forth at the beginning of this
Agreement; [and, if applicable, it is a corporation or limited liability company
duly organized and validly existing under the laws of
___________________].
6.
PREMIER CDC’S AGREEMENT AND RIGHTS:
Premier CDC agrees that:
(a) Premier CDC will cooperate with SBA in obtaining control with respect to the
Collateral by executing a control agreement between a bank, the Premier CDC
and SBA for each deposit account comprising the Premier CDC’s LLRF;
(b) The only property that will be credited to the Collateral will be funds which
are not instruments, and which are (i) eligible for federal deposit insurance,
and (ii) segregated from all other funds or property of Premier CDC which do
not constitute the LLRF;
(c) Premier CDC will not instruct the Bank to issue any instruments in connection
with the LLRF;
SBA Form 2229 (4/03)
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(d) Premier CDC will immediately notify SBA if the aggregate amount of all
Premier CDC’s funds on deposit with any bank at which all or part of the
LLRF is maintained which are eligible for federal deposit insurance (including
certificates of deposit and funds in deposit accounts other than the Collateral)
is more than the maximum amount eligible for federal deposit insurance;
(e) Without SBA’s prior written consent, Premier CDC will not attempt to
withdraw any funds from the Collateral or give any bank at which all or part
of the LLRF is maintained any instructions with respect to the Collateral;
(f) Without SBA’s prior written consent, Premier CDC will not enter into any
agreements relating to the Collateral (i) with a bank at which all or part of the
LLRF is maintained other than such bank’s customer agreement governing
deposit accounts, if any, and a Loan Loss Reserve Fund Deposit Account
Control Agreement, or (ii) any other person or entity;
(g) Premier CDC will not create or suffer to exist any security interests, liens,
claims or other encumbrances on the Collateral other than those in favor of
SBA and the rights of a bank permitted under a control agreement entered into
by Premier CDC, SBA and such bank;
(h) Premier CDC will maintain all Collateral in good condition, and pay promptly
all taxes, judgments, or charges of any kind levied or assessed thereon;
(i) Premier CDC will execute and will pay the filing and recording costs of any
records necessary to perfect, continue, amend, or terminate the Security
Interest, as demanded by SBA, and Premier CDC ratifies all previous such
filings, including financing statements;
(j) Premier CDC will not change it’s legal name, change or reorganize the type of
organization or form under which it does business or, if a corporation or
limited liability company, change its state of organization except upon prior
written approval of SBA; if such approval is given, Premier CDC agrees that
all records demanded by SBA in connection therewith shall be prepared and
filed at Premier CDC’s expense before any such change occurs;
(k) Premier CDC maintains records concerning the Collateral at the following
address:_______________________;
(l) Premier CDC waives any right it may have to require SBA to defend against
or pursue any third party for any obligation or claim arising from this
Agreement; and
(m) Premier CDC will enter into any additional agreements or modifications to
this Agreement which SBA deems necessary or desirable to ensure that SBA
SBA Form 2229 (4/03)
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has and maintains a valid and perfected first priority security interest in the
Collateral.
7.
DEFAULT AND SBA’S RIGHT TO PROTECT THE COLLATERAL:
(a) It shall be considered a default if Premier CDC fails to reimburse SBA for
10% of any loss (including attorney’s fees and litigation costs and expenses)
sustained by SBA as a result of a default in the payment of principal or
interest on any Debenture issued by Premier CDC or any loss to SBA on a
loan funded by the issuance of such a Debenture under the PCLP after (i) a
determination (including the expiration of any time period for appeal to the
SBA Assistant Administrator for Financial Assistance) of the loss sustained
by SBA, (ii) demand by SBA to Premier CDC for reimbursement for 10% of
such loss, and (iii) the expiration of any time period within which Premier
CDC must make such reimbursement.
(b) SBA also shall have the right to protect the Collateral and the priority of its
Security Interest in the Collateral in the event of:
(i) the making of any levy, seizure or attachment of or on the Collateral by a
party other than SBA; or
(ii) the appointment of a receiver for any part of the property of Premier
CDC, assignment for the benefit of creditors, or the commencement of any
proceedings under any bankruptcy or insolvency laws against Premier
CDC, which proceeding is not dismissed within ninety (90) days.
8. RIGHTS
OF SBA:
(a) Upon default or at any time thereafter until such default is cured, and upon the
occurrence of any of the events in Paragraph 7(b), SBA shall:
(i)
have the rights of a secured party pursuant to the Uniform Commercial
Code (“UCC”);
(ii)
have the sole right to transfer or withdraw funds from the Collateral by
check, withdrawal slip, wire transfer instructions or any other means,
without further consent by Premier CDC, in order to apply such funds
to pay the Obligation and cure the default, or to protect the Collateral
and SBA’s Security Interest therein;
(iii)
hold as additional security any proceeds arising from the Collateral,
including but not limited to, any insurance rights;
(iv)
have the right to issue instructions to the bank under any control
agreement entered into by Premier CDC, SBA and such bank,
SBA Form 2229 (4/03)
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including instructions to the bank not to follow instructions from
Premier CDC with respect to any Collateral maintained at such bank;
and
(v)
take any other action necessary to enforce its rights under this
Agreement.
(b) Before or after default, SBA may waive any of its rights (including rights
upon Premier CDC’s default) under this Agreement, but such waiver must be
in writing and signed by an authorized SBA official.
(c) All rights conferred on SBA hereby are in addition to those granted to it by
any state or local law or any other law. SBA’s failure or repeated failure to
enforce, or waiver of, any rights hereunder shall not impair SBA’s rights to
exercise such rights accruing prior or subsequent thereto.
9.
PAYMENT OF FEES; COSTS AND EXPENSES:
In no event will SBA be liable to a Bank or to Premier CDC for any costs or
expenses incurred under this Agreement or in connection with the Collateral.
10. AMENDMENTS
AND WAIVERS:
All amendments to this Agreement must be in writing and executed by an
authorized official of the Premier CDC and SBA. No waiver of any provision of this
Agreement shall be binding against any party unless it is in writing and executed by an
authorized official of the party to be charged therewith. Any waiver of any provision of
this Agreement shall not impair the exercise of that provision by either party on a future
date. This Agreement may not be terminated without the prior written consent of SBA.
11. SEVERABILITY:
Any provision of this Agreement that is prohibited or invalid in any jurisdiction
shall be ineffective in that jurisdiction, but such provisions shall have no effect on the
validity of the remaining provisions of this Agreement. Any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.
12. INCONSISTENCIES:
(a) If any provision of this Agreement is inconsistent with any provision in any
control agreement made pursuant to this Agreement between a bank, the
Premier CDC and SBA, the provision of such control agreement shall govern.
SBA Form 2229 (4/03)
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