Sample Agricultural Security Agreement Template

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FORM 4C.4 AGRICULTURAL SECURITY AGREEMENT
Date _______________
Parties, collateral. The undersigned Debtor (hereinafter collectively with Codebtor, if any, called Debtor), jointly
1.
and severally, for value received, hereby grants to [name of lender] (hereinafter called Holder) a security interest
under the Uniform Commercial Code of [state] in the following described collateral:
The following agricultural equipment: [list].
a.
The following livestock: [list].
b.
The following crops: [list].
c.
And as additional collateral all additions to and replacements of all such collateral and all accessories, acces-
d.
sions, parts, and equipment now or hereafter affixed thereto or used in connection therewith and the proceeds
from all such collateral (including negotiable or nonnegotiable warehouse receipts now or hereafter issued for
storage of collateral). If this Agreement includes livestock, then as additional collateral Debtor grants to Holder a
security interest in all increase and issue thereof and additions, replacements, and substitutions thereof. If this
Agreement includes crops, then as additional collateral Debtor grants to Holder a security interest in all annual
and perennial crops and products thereof growing or planted on the following described property, either before
or after harvest, and all additions and substitutions thereof and if the property covered hereby is crops or
fixtures, it is and will be located on the following described property: [description of property and county]. If
other than Debtor, the record owner of the land described is [name and address]. All collateral described
previously in subparagraphs a, b, c, and d is referred to in this Agreement collectively as the Collateral, and
shall include all such Collateral wherever located.
Representations and warranties of debtor. So long as any indebtedness secured hereby remains unpaid, Debtor
2.
shall continuously represent and warrant that (a) Debtor is the owner of the Collateral free of all security interests
or other encumbrances, except the security interest created by this Agreement; (b) Debtor is authorized to enter into
this Agreement; (c) Debtor is engaged in farming operations and Debtor’s farming operations are carried on at the
address specified below opposite Debtor’s signature; and (d) the Collateral is and will be located at the address
specified opposite Debtor’s signature, or, if not, at [address].
Additional provisions. THIS SECURITY AGREEMENT SPECIFICALLY INCLUDES ALL THE ADDITIONAL
3.
PROVISIONS SET FORTH, THE SAME BEING INCORPORATED HEREIN BY REFERENCE.
IN WITNESS WHEREOF, the Debtor has executed and delivered this Agreement on the date first above written.
The undersigned Debtor acknowledges receipt of a copy of this instrument.
[address of debtor]
[name of corporation, partnership, or organization]
[signature]
[name, title, Social Security number]
[signature]
[name, title, Social Security number]
Such additional provisions are as follows:
Obligations secured. This agreement is continuing until specifically terminated in writing by Holder and the security
4.
interest granted herein is given to secure the performance of the covenants and agreements herein set forth and the
payment of the indebtedness evidenced by the promissory note(s) or other instruments executed by Debtor to the
order of Holder and any other indebtedness of Debtor to Holder, whether now existing or hereafter incurred, of every
kind and character, direct or indirect, whether as maker, indorser, guarantor, or surety and whether such indebted-
ness is from time to time reduced and thereafter increased or entirely extinguished and thereafter reincurred,
including, without limitation, any sums advanced by Holder in the performance of Debtor’s obligations hereunder,
any license fees, insurance, and repairs with respect to the Collateral, and any attorney fees and other charges and
expenses incurred in the collection of the obligations secured hereby, provided, however, that indebtedness incurred
in a “Consumer Credit Transaction” as defined in the [state] Consumer Credit Code shall not be secured by this
Agreement. If more than one person signs this Security Agreement, each of the undersigned individuals acknowl-
edge and agree that the interest of each of us in the collateral described above shall stand as security and collateral
for any indebtedness, direct or contingent, that Bank or its assignee may now hold or in the future acquire, made
or incurred by both us jointly, or made or incurred by either one of us separately and independently of the other,
without the necessity of obtaining the consent, cosignature or acknowledgement of the other on any such other
indebtedness or obligation and whether made or incurred with or without my knowledge.
Additional warranties and covenants of debtor. So long as any indebtedness secured hereby remains unpaid,
5.
Debtor:
Will defend the Collateral against the claims and demands of all other parties; will keep the Collateral free
a.
from all security interests or other encumbrances, except the security interest created by this Agreement; will
FORM 4C.4 AGRICULTURAL SECURITY AGREEMENT
Date _______________
Parties, collateral. The undersigned Debtor (hereinafter collectively with Codebtor, if any, called Debtor), jointly
1.
and severally, for value received, hereby grants to [name of lender] (hereinafter called Holder) a security interest
under the Uniform Commercial Code of [state] in the following described collateral:
The following agricultural equipment: [list].
a.
The following livestock: [list].
b.
The following crops: [list].
c.
And as additional collateral all additions to and replacements of all such collateral and all accessories, acces-
d.
sions, parts, and equipment now or hereafter affixed thereto or used in connection therewith and the proceeds
from all such collateral (including negotiable or nonnegotiable warehouse receipts now or hereafter issued for
storage of collateral). If this Agreement includes livestock, then as additional collateral Debtor grants to Holder a
security interest in all increase and issue thereof and additions, replacements, and substitutions thereof. If this
Agreement includes crops, then as additional collateral Debtor grants to Holder a security interest in all annual
and perennial crops and products thereof growing or planted on the following described property, either before
or after harvest, and all additions and substitutions thereof and if the property covered hereby is crops or
fixtures, it is and will be located on the following described property: [description of property and county]. If
other than Debtor, the record owner of the land described is [name and address]. All collateral described
previously in subparagraphs a, b, c, and d is referred to in this Agreement collectively as the Collateral, and
shall include all such Collateral wherever located.
Representations and warranties of debtor. So long as any indebtedness secured hereby remains unpaid, Debtor
2.
shall continuously represent and warrant that (a) Debtor is the owner of the Collateral free of all security interests
or other encumbrances, except the security interest created by this Agreement; (b) Debtor is authorized to enter into
this Agreement; (c) Debtor is engaged in farming operations and Debtor’s farming operations are carried on at the
address specified below opposite Debtor’s signature; and (d) the Collateral is and will be located at the address
specified opposite Debtor’s signature, or, if not, at [address].
Additional provisions. THIS SECURITY AGREEMENT SPECIFICALLY INCLUDES ALL THE ADDITIONAL
3.
PROVISIONS SET FORTH, THE SAME BEING INCORPORATED HEREIN BY REFERENCE.
IN WITNESS WHEREOF, the Debtor has executed and delivered this Agreement on the date first above written.
The undersigned Debtor acknowledges receipt of a copy of this instrument.
[address of debtor]
[name of corporation, partnership, or organization]
[signature]
[name, title, Social Security number]
[signature]
[name, title, Social Security number]
Such additional provisions are as follows:
Obligations secured. This agreement is continuing until specifically terminated in writing by Holder and the security
4.
interest granted herein is given to secure the performance of the covenants and agreements herein set forth and the
payment of the indebtedness evidenced by the promissory note(s) or other instruments executed by Debtor to the
order of Holder and any other indebtedness of Debtor to Holder, whether now existing or hereafter incurred, of every
kind and character, direct or indirect, whether as maker, indorser, guarantor, or surety and whether such indebted-
ness is from time to time reduced and thereafter increased or entirely extinguished and thereafter reincurred,
including, without limitation, any sums advanced by Holder in the performance of Debtor’s obligations hereunder,
any license fees, insurance, and repairs with respect to the Collateral, and any attorney fees and other charges and
expenses incurred in the collection of the obligations secured hereby, provided, however, that indebtedness incurred
in a “Consumer Credit Transaction” as defined in the [state] Consumer Credit Code shall not be secured by this
Agreement. If more than one person signs this Security Agreement, each of the undersigned individuals acknowl-
edge and agree that the interest of each of us in the collateral described above shall stand as security and collateral
for any indebtedness, direct or contingent, that Bank or its assignee may now hold or in the future acquire, made
or incurred by both us jointly, or made or incurred by either one of us separately and independently of the other,
without the necessity of obtaining the consent, cosignature or acknowledgement of the other on any such other
indebtedness or obligation and whether made or incurred with or without my knowledge.
Additional warranties and covenants of debtor. So long as any indebtedness secured hereby remains unpaid,
5.
Debtor:
Will defend the Collateral against the claims and demands of all other parties; will keep the Collateral free
a.
from all security interests or other encumbrances, except the security interest created by this Agreement; will
not sell, transfer, assign, deliver, or otherwise dispose of any Collateral or any interest therein without the
prior written consent of Holder; will not store any Collateral in warehouse facilities or otherwise without prior
written consent of Holder and the form of warehouse receipt proposed to be issued upon such storage shall be
delivered directly to Holder
Will keep, in accordance with generally accepted accounting principles consistently applied, accurate and
b.
complete records concerning the Collateral, and will permit Holder or its agents from time to time to inspect
the Collateral and to audit and make extracts from such records or any of Debtor’s books, ledgers, reports,
correspondence, and other records
Will notify Holder in writing prior to any change in Debtor’s address specified herein, and prior to any change in
c.
Debtor’s name, entity, or legal structure
In connection herewith, will execute and deliver to Holder such financing statements or other documents, pay
d.
all costs of title searches and filing financing statements and other documents in all public offices requested
by Holder and do such other things with respect to the Collateral, as Holder may request
Will pay or cause to be paid all taxes, assessments, and other charges of every nature that may be levied or
e.
assessed against the Collateral; will insure or cause to be insured the Collateral against risks, and in coverage,
form an amount satisfactory to Holder with the Holder named as an insured on such policies; and at Holder’s
request, will deliver or cause each policy or certificate of insurance thereof to be delivered to Holder
Will take good care of the Collateral and will maintain the Collateral in good condition and not permit its
f.
value to be impaired, and will immediately give Holder written notice of any loss of, or damage to, any of the
Collateral
Will neither make any material change in the Collateral nor use nor permit the same to be used for any unlawful
g.
purpose whatsoever; and will secure prior written permission from Holder before changing the location of the
Collateral as set forth herein
Proceeds. Proceeds of Collateral are also covered by the security interest granted herein; however, such provision
6.
shall not be construed to mean that the Holder consents to any sale of the Collateral, and Debtor may not sell or
otherwise dispose of the Collateral without the prior written consent of the Holder.
Insurance and taxes. In the event the Debtor shall fail to provide adequate insurance, pay taxes, or perform any
7.
other duty set forth herein, Holder may, without notice, at its option, but without any obligation or liability to do
so, procure insurance, pay taxes, or perform any other duty set forth herein and add said sum to the balance of the
obligations herein secured. Debtor hereby appoints the Holder the agent and attorney for the Debtor in adjusting
and canceling such insurance and indorsing settlement drafts.
Successors and assigns. The rights and privileges of Holder under this Agreement shall inure to the benefit of its
8.
successors and assigns. All covenants, representations, warranties, and agreements of Debtor contained in this
Agreement are joint and several if Debtor is more than one and shall bind Debtor’s personal representatives, heirs,
successors, and assigns.
Nonwaiver, extensions, etc. Any extension of time for payment of any installment of any of the Debtor’s obliga-
9.
tions or the acceptance of only a part of such installment, or the failure of Holder to enforce the strict performance
of any covenant, promise, or condition herein contained (or in any other note, obligation, or agreement) on the part
of the Debtor to be performed, shall not operate as a waiver of the right of Holder thereafter to require that the
Debtor’s obligations and the terms herein be strictly performed according to the tenor thereof and hereof. No party
to this Agreement shall be discharged from liability to the Holder by reason of the Holder’s extending the time for
payment of an installment or installments owing or due upon any such obligation, or by reason of the Holder’s
waiver or modification of any terms of the Agreement. All parties hereto severally waive presentment for payment,
notice of nonpayment, protest, notice of protest, and diligence in bringing suit against any party. All Debtors agree
that Holder may, without thereby releasing any Debtor, substitute, release, alter, or make any other disposition of
any Collateral and further agree that Holder is not required to first resort for payment to any such Collateral. Debtor
grants Holder, as further security for the Obligations secured hereby, a security interest and lien in any credit balance
(and other money) now or hereafter owed Debtor by Holder or any assigns of Holder, and, in addition, agrees that
Holder may, without prior notice or demand, setoff against any such credit balance (or other money) any amount
owing upon the obligations secured hereby. No waiver of provision of this Agreement shall be effective unless in
writing and signed by Holder.
10. Acceleration of obligations and default. Upon the occurrence of any of the following events, Holder may, at its
option, with or without notice, declare the whole unpaid balance of any obligation secured by this Agreement
immediately due and payable and may declare Debtor to be in default under this Agreement, said events being as
follows: (a) Debtor fails to make timely payments on any obligation secured hereby; (b) Debtor fails to perform
any other covenant, promise, or condition agreed to by Debtor performed in any paragraph of this Agreement or
any other note, obligation, or agreement with the Holder; (c) Debtor or Debtor’s agent gave or furnished to Holder
a false statement, representation, or warranty in a material respect; (d) Debtor dies or fails in business or if there
occurs the dissolution or termination of the existence of Debtor’s business, or if any proceedings under any bank-
ruptcy or insolvency law by or against the Debtor or by or against any guarantor or surety hereon for the Debtor is
commenced, or if the Debtor shall make an assignment for the benefit of creditors; (e) occurrence of loss, theft
damage, or destruction of the Collateral not covered by adequate insurance containing a loss payable clause for the
protection of Holder; (f) Holder believes itself insecure.
11. Remedies. Upon default as provided in paragraph 10 previously, Holder shall have all the rights and remedies of a
secured party under the Uniform Commercial Code of [state] and under any other applicable laws. Any require-
ments of reasonable notice by either party to the other or to any guarantors or sureties of Debtor shall be met if
such notice is mailed, postage prepaid, to the address of the parties shown following section 3 of this Agreement
(or to such other mailing address as either party in writing later furnishes to the other) at least 10 calendar days
(counting the day of sending) before the time of the event or contemplated action set forth in said notice. Debtor
agrees to pay all expenses of retaking, holding, preparing for sale, selling, and attorney fees and legal expenses as
may be allowed by law and incurred by Holder in enforcing its rights under this Agreement. Debtor hereby
authorizes the Holder, its agents, or assigns, to enter upon the premises of the Debtor at any reasonable time and
whether or not in default, to inspect the Collateral; and if in default to possess, or attempt to possess, said Collat-
eral and to assert or attempt to assert the rights of the Holder under any of the terms and provisions of this Agree-
ment. Debtor waives all rights and claims for trespass or conversion and damages in any manner hereby caused by
Holder, its agents, or assigns. All exemptions in, and to any of the Collateral are hereby waived. The rights and
remedies herein conferred upon the Holder shall be cumulative and not alternative and shall be in addition to and
not in substitution of or in derogation of rights and remedies conferred by the Uniform Commercial Code of [state],
and other applicable laws.
12. Construction. Words and phrases herein shall be construed as in the singular or plural number, and as masculine,
feminine, or neuter gender according to the context. The paragraph headings of the Agreement are for convenience
only and shall not limit the terms of this Agreement. The validity, construction, and enforcement of this Agree-
ment shall be determined and governed by the laws of [state]. All terms not otherwise defined shall have the meaning
assigned to them by the Uniform Commercial Code of [state]. If any provision of this Agreement shall for any
reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other pro-
vision hereof, but this Agreement shall be construed as if such invalid or unenforceable provision had never been
contained herein.
13. Food security act. Pursuant to the Federal Food Security Act of 1985, Public Law 99-108, § 1324, and Uniform
Commercial Code § 554.9307, the below identified Security Agreement(s) (Security Agreements(s)) executed by
the below identified Debtor(s) in which the Debtor(s) granted to [bank] (Bank) a security interest in certain farm
products or goods, are hereby amended as follows, provided however, that except as modified hereby, the Security
Agreement(s) is/are hereby ratified and confirmed and shall be and remain in full force and effect.
Bank hereby requires and the Debtor(s) hereby agree(s) to furnish to Bank at the time this Addendum to
a.
Security Agreement is executed and within five (5) days after request by Bank, a list of potential buyers,
commission merchants, and selling agents for the farm products covered by the Security Agreement and to or
through whom Debtor(s) may or will be selling such farm products. Debtor(s) hereby agree(s) that pursuant
to and subject to the requirements of Section 9.307 Bank is hereby authorized to send notices pursuant to the
Federal Food Security Act of 1985 to all buyers, commission merchants, and selling agents that the Bank in
its sale discretion shall determine including but not limited to filing effective financing statements in central
filing systems.
Bank hereby requires and Debtor(s) hereby agree(s) to give Bank notice in writing of a sale or other disposi-
b.
tion of any farm products covered by the Security Agreement(s) at least seven (7) days prior to the sale or
other disposition of any farm products covered by the Security Agreement(s) to a buyer, commission merchant,
or selling agent not listed on the original list or any additional list after the date of the original list furnished
by Debtor(s) to Bank.
Sale or other disposition of the farm products covered by the Security Agreement(s) to the buyer, commission
c.
merchant, or selling agent not listed as a potential buyer, not identified in writing as a potential buyer at least
seven (7) days prior to the sale or other disposition, or without accounting for the proceeds of the sale within
ten (10) days of the sale or other disposition may subject the Debtor(s) to civil and criminal penalties.
Bank does not consent to the sale or other disposition of any farm products covered by the Security Agree-
d.
ment(s) except to those buyers, commission merchants, or selling agents identified on the list furnished
pursuant to paragraph a of this Amendment or with respect to which Bank has received from Debtor(s)
written notice in compliance with paragraph b of this Amendment. Any such consent shall be only for those
products identified in such list or written notice to be sold to any such buyer, commission merchant, or selling
agent and only if such buyer, commission merchant, or selling agent issues a check payable jointly to Debtor(s)
and Bank or otherwise complies with paragraph 6 herein. Debtor agrees that this prohibition against sale to or
through buyers, commission merchants, or selling agents not set forth on the list without the prior written
consent of Bank, may not be modified by any course of conduct, waiver, or estoppel.
Debtor hereby agrees to pay to Bank an annual loan processing fee of $_______ dollars.
e.
THAT BANK HEREBY REQUIRES AND THE UNDERSIGNED HEREBY AGREES TO REQUEST AND
f.
GIVE BANK PERMISSION TO REQUIRE
That any purchaser, commission merchant, or selling agent, acquiring products covered by the security
i.
agreement(s), issue a check payable jointly to me/us and bank
Other: [description]
ii.
Identification of Security Agreement(s):
g.
Security Agreement(s) dated _________________________________________________________________
Security interested granted in the following farm products [list]
Debtor(s) ________________________________________________________________________________
Address _________________________________________________________________________________
Social Security no. or Federal Tax I.D. no. _____________________________________________________
County(ies) ______________________________________________________________________________
Real property description (legal) _____________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
FORM 4C.4

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