This is an agreement whereby one party (the "Debtor") uses personal property, not real
property, as security or collateral for a loan. The Debtor pledges to the lender (the
"Secured Party") a security interest in the personal property until the loan is paid in full.
This particular agreement uses a fidelity bond as the security interest, but it can be
tailored to fit the specific needs of the drafting parties. This agreement should be used
by small businesses that want to use a bond or other personal property as collateral for
a loan.
COMMERCIAL SECURITY AGREEMENT
Non-Negotiable - Private Between two Parties
This Security Agreement is made and entered into this _____ [Instruction: Insert date.] day of _____
[Instruction: Insert month.], 20__ [Instruction: Insert year.], by and between _____ [Instruction:
Insert Debtor’s name.], having an address at _____ [Instruction: Insert Debtor’s address.], and
Social Security Account #_____ [Instruction: Insert Debtor’s Social Security Number.] (the
“Debtor”), and _____ [Instruction: Secured Party’s name.], a duly registered ____ [Instruction:
Insert state where registered and type of corporation.] with a principal business address located at
____ [Instruction: Insert Secured Party’s principal business address.] (the “Secured Party”),
Employer Identification #_____ [Instruction: Insert date.]. The herein Security Agreement
supersedes and replaces, nunc pro tunc, any presumed, implied, assumed or real co-business
partnership, attorney-in-fact, trustee, fiduciary, or accommodation party arrangements that may have
existed between Debtor, Secured Party, and any other parties. The herein Security Agreement
specifically supersedes any and all other Commercial Security Agreements heretofore entered into and
recorded of the ______ [Instruction: Insert name of state office in which any other security
agreements were filed or recorded, as the case may be. Otherwise, delete this reference.]
The Parties, (the “Parties”), are identified as follows:
DEBTOR
Secured Party
______ [Instruction: Insert Debtor’s full
legal name.] ______ [Instruction: Insert legal name of
[Comment: Insert all of Debtor’s derivatives principal in fact.]
or Aliases.] Principal in Fact
_____ [Instruction: Insert Debtor’s address.] ______ [Instruction: Insert Secured Party’s
contact address.]
NOW, THEREFORE, Parties aforementioned agree as follows:
AGREEMENT
IN CONSIDERATION for Secured Party providing certain accommodations to Debtor, including but
not limited to:
1. Constituting the source, origin, substance, and being, i.e. basis of “pre-existing claim,” from which
existence of debtor was derived, and on the basis upon which Debtor is able to function as
transmitting utility or vessel, i.e. serve as conduit for transmission of goods and services in
commercial activity, and interact, contract and exchange goods, services, obligations and liabilities
in commerce with other debtors, corporations or other artificial persons and entities or to conduct
commercial activity as a conduit for the transmission of goods and services to Secured Party, and
to interact, contract, and exchange goods, services to Secured Party and/or other Debtors,
corporations, and artificial persons in Commerce and the laws pertaining thereto or derived
therefrom.
2. Signing by accommodation for Debtor in all cases, whatsoever, wherein any signature of Debtor is
required;
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3. Issuing binding commitment to extend credit or for the extension of immediately available credit,
whether or not, drawn upon and, whether or not, chargeback is provided for in the event of
difficulties in collection;
4. Providing the security for payment of all sums due or owing, or to become due or owing, by
Debtor;
5. Constituting the source of assets, via sentient existence, exercise of faculties and labor of Secured
Party, that provide valuable consideration sufficient to support any contract, which Debtor may
execute or to which Debtor may be regarded as bound by any person, whatsoever; and
6. Debtor hereby confirms voluntary entry of Debtor into the Commercial Registry and transfers and
assigns to Secured Party a security interest in the Collateral described herein below.
ALL REFERENCES in this document of or about: The Security Agreement, herein Security
Agreement, the agreement, herein Commercial Security Agreement, the Commercial Security
Agreement and any other derivatives of the term “agreement” means: this security agreement as first
dated above unless specifically stated otherwise.
NOW, THEREFORE, it is hereby agreed as follows: for valuable consideration, for certain collateral
being agreed upon by the Secured Party and certain accommodations for the Debtor, as described
herein, the receipt and sufficiency of which are hereby acknowledged, including, but not limited by,
allowing the Debtor to act as an agent; utilized for the purpose of conducting commercial activity for
the benefit of Secured Party; and as security for payment of all sums due or which may become due or
owing by Debtor to or for Secured Party, Debtor hereby grants Secured Party a security interest in the
collateral securing the indebtedness and agrees that Secured Party shall have the rights stated in the
herein Security Agreement regarding the collateral, including all other rights which Secured Party may
have including any and all rights as beneficiary of any and all trusts. The security interest granted
herein secures any and all indebtedness and liabilities, whatsoever, owed by Debtor to or for Secured
Party, whether direct or indirect, absolute or contingent, due or may becoming due, now existing or
hereafter arising, and how so-ever evidenced. The herein security interest is also given for securing
any other debts, which may be owed by Debtor to or for Secured Party for any and all times as stated
herein below.
FIDELITY BOND
KNOW ALL MEN by these presents, that Debtor, establishes this bond in favor of Secured Party, in
the sum of present Collateral Values up to the penal sum of _____ ($_____.00 Dollars) [Instruction:
Insert written amount of bond, followed by numerical representation of same in parentheses.] , for payment of
which bond, well and truly made, Debtor binds Debtor and Debtor’s heirs, executors, administrators
and third-p