Three elements must be in place for the insured party to have a protected security interest for the guarantees: 1) the insured party must pay or give something valuable to receive security interest, 2) the debtor must hold the guarantee or have the appropriate authority over the security to pawn the guarantee and 3) the debtor must sign a guarantee contract. As soon as the three positions take office, the insured party has, quite rightly, an interest in the security of guarantees. This process is referred to as the “annex” of security interest. Assuming the first two positions are available, the insured party should have a security interest attached when the debtor signs the security agreement.  Go. Code Anno. No. 8.9A-509 (b) (Michie 1950) [security agreement as authorization. By authenticating or announcing a debtor through a security agreement, a debtor or a new debtor authorizes the filing of an initial financing declaration and an amendment covering the security detailed in the guarantee contract…). Other documents may provide additional legal protection. For example, those who use security agreements often incorporate fund changes, loan contracts and sales contracts into their existing business practices. When can the materials supplier use a security interest? At what point does the typical credit transaction have the supplier the opportunity to obtain guarantees? A purchase guarantee interest will be best for a seller of durable goods that the buyer will keep for a long time.
The truck salesman is a good example. A food supplier for a restaurant will not be interested in a safe interest in buying money, because the goods are quickly resold or degrade their value as they age. A supplier of building materials usually has the same problem. The wood delivered to a carpenter will soon be sold to the builder and incorporated into the property. The home builder will generally require that carpentry subcontractors to place the wood “free of all rights of pawn” and “free of any interest in safety. Open Access Voucher and Security Agreement Borrower Information Borrower Information 1 Name Amount Requested – Borrower Account Number 1 Address Subject: Borrower Home Phone Number 2 Name Account Number Deposit in Account Number/Other: Borrower 2… Here you have the option to include one or more co-signers to ensure repayment of debts if a debtor is unable to pay some or all of the outstanding debt. For each co-signer, a separate co-signer agreement is automatically included, signed with the insured party and each notary or witness. A security agreement doesn`t have to be complicated. A simple letter from the debtor may suffice as long as it is signed by the debtor and the owner, appropriately describes the security and clearly indicates that an interest in the property value is granted.
It is advisable that your security contract indicates that the creditor can file a UCC-1 funding return in public records. The forms can also be used; The security agreement in the annexes is an example of a form granting rights to a large number of guarantees as well as additional legal rights. A security agreement may provide that, although Article 9 explicitly covers all security interests, it may also cover agreements similar to security interests.