Security Agreement Covering Consumer Goods

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}}

Website: {{website}}

SECURITY AGREEMENT

This Security Agreement ('Agreement') is made and entered into this {{day}} day of {{month}}, {{year}}, by and between:

**Secured Party:** {{company_name}}, a company duly incorporated under the laws of [Relevant African Country], with its principal place of business at {{company_address}} (hereinafter referred to as 'Secured Party').

**Debtor:** {{debtor_full_name}}, residing at {{debtor_address}}, with National ID/Passport Number {{debtor_id_number}} (hereinafter referred to as 'Debtor').

1. GRANT OF SECURITY INTEREST

For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Debtor hereby grants to Secured Party a security interest in the following goods ('Collateral') to secure the payment and performance of the obligations described in Section 2:

**Description of Collateral:**

{{item_1_description}}, Serial Number: {{item_1_serial_number}}, Value: {{item_1_value}}

{{item_2_description}}, Serial Number: {{item_2_serial_number}}, Value: {{item_2_value}}

{{item_N_description}}, Serial Number: {{item_N_serial_number}}, Value: {{item_N_value}}

The Collateral is consumer goods and is or will be used primarily for personal, family, or household purposes.

2. OBLIGATIONS SECURED

This Agreement secures the payment of the principal amount of {{loan_amount}} ({{loan_amount_words}}), together with interest thereon at the rate of {{interest_rate}}% per annum, as evidenced by a Promissory Note dated {{promissory_note_date}}, and all other obligations, indebtedness, and liabilities of Debtor to Secured Party, whether now existing or hereafter arising, including all costs of collection, legal fees, and expenses incurred by Secured Party in enforcing this Agreement.

3. DEBTOR'S COVENANTS AND WARRANTIES

Debtor hereby covenants and warrants to Secured Party that:

a. **Ownership:** Debtor is the lawful owner of the Collateral, free and clear of all liens, encumbrances, and security interests, except for the security interest granted herein.

b. **Location:** The Collateral will be kept at {{collateral_location}} and Debtor shall not remove the Collateral from this location without the prior written consent of Secured Party.

c. **Maintenance:** Debtor shall keep the Collateral in good order, repair, and condition, and shall not waste or destroy the Collateral or any part thereof.

d. **Insurance:** Debtor shall keep the Collateral insured against loss by fire, theft, and other risks, in an amount not less than the outstanding balance of the secured obligations, with an insurer acceptable to Secured Party. Secured Party shall be named as loss payee on such insurance policy.

e. **Taxes and Charges:** Debtor shall pay all taxes, levies, assessments, and other charges upon the Collateral when due.

4. EVENTS OF DEFAULT

The occurrence of any of the following shall constitute an 'Event of Default' under this Agreement:

a. Failure by Debtor to pay any amount due under the Promissory Note or this Agreement when due.

b. Failure by Debtor to perform any covenant or obligation contained in this Agreement.

c. Any representation or warranty made by Debtor in this Agreement proving to be false or misleading in any material respect.

d. The insolvency or bankruptcy of Debtor, or the commencement of any insolvency or bankruptcy proceeding by or against Debtor.

e. Seizure or attachment of the Collateral by any third party.

5. REMEDIES OF SECURED PARTY UPON DEFAULT

Upon the occurrence of an Event of Default, and without prejudice to any other rights or remedies available to Secured Party at law or in equity, Secured Party may:

a. Declare all outstanding obligations immediately due and payable.

b. Take possession of the Collateral without judicial process, and Debtor agrees to assemble the Collateral and make it available to Secured Party at a place designated by Secured Party which is reasonably convenient to both parties.

c. Sell, lease, or otherwise dispose of the Collateral in a commercially reasonable manner, and apply the proceeds to the costs of repossession and sale, and then to the satisfaction of the secured obligations. Any surplus shall be paid to Debtor, and Debtor shall remain liable for any deficiency.

d. Exercise any other rights and remedies available to a secured party under the [Relevant African Country] Uniform Commercial Code (or equivalent legislation).

6. MISCELLANEOUS PROVISIONS

a. **Governing Law:** This Agreement shall be governed by and construed in accordance with the laws of [Relevant African Country].

b. **Notices:** All notices required or permitted under this Agreement shall be in writing and sent to the addresses set forth above, or to such other address as either party may designate by written notice to the other.

c. **Amendments:** This Agreement may not be amended or modified except in writing signed by both Debtor and Secured Party.

d. **Entire Agreement:** This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements.

e. **Severability:** If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.