To: __________________________ ("Bank/Lender")
___________________________
___________________________
1. Collateral
The undersigned ("Debtor") grants to Bank a continuing security interest in the following collateral ("Collateral"):
("X" boxes that apply)
[ ] All of Debtor's presently owned or after-acquired accounts, contract rights, instruments, documents, chattel paper, and general intangibles.
[ ] All of Debtor's presently owned or after-acquired inventory.
[ ] All of Debtor's presently owned or after-acquired equipment.
[ ] All of Debtor's presently owned or after-acquired fixtures, which are or will be located on the property at _______________________________________ _____________________________________________________ owned by _______________________________________ and any replacements or substitutions therefor.
[ ] All records of the above Collateral, in whatever form.
[ ] All proceeds and products of, and the proceeds of any insurance covering, the above Collateral.
2. Obligations Secured
This security agreement and the Collateral shall secure the payment and performance of all present and future indebtedness and liabilities of Debtor to Bank, of whatever type and however arising, including. but not limited to, loans; overdrafts; guaranties and endorsements by Debtor in Bank's favor; all related interest, fees, charges, and expenses; and all of the above, whether or not now contemplated by the parties.
3. Duties Of Debtor Regarding Collateral(a) Debtor shall maintain the Collateral in good condition and repair, and allow Bank to inspect the same at all reasonable times. (b) Debtor will promptly provide Bank with such information about the Collateral as Bank may request from time to time, and execute any documents necessary to perfect the security interest granted hereby. (c) Debtor will maintain insurance on the Collateral satisfactory to Bank. If Bank requests, Debtor will make Bank payee of any insurance. (d) Debtor will keep the Collateral free of all other security interests, liens, or encumbrances of any kind, and will pay all taxes and other governmental charges on it. (e) Unless Bank consents in writing in advance, Debtor shall not (1) sell, assign, lease, or otherwise dispose of any of the Collateral, or (2) remove any of the Collateral from its present location (except inventory that is sold in the ordinary course of Debtor's business).
4. Default (a) Debtor shall be in default if: (1) Debtor fails to make any payment on any Obligation when due; or (2) Debtor fails to perform any other provision of this or any other instrument in Bank's favor; or 3) Any representation made to Bank in connection herewith proves to be false; or 4) Debtor or any endorser or guarantor of any of the Obligations shall die or be dissolved; cease to operate its business substantially as at present; make an assignment for the benefit of creditors; or permit an attachment of or have a receiver, custodian, trustee, or conservator appointed for substantially all of its assets or any of the Collateral; or (5) Any action shall be commenced affecting Debtor or any endorser or guarantor of any of the Obligations under any bankruptcy, receivership, relief of debtor, or insolvency laws; or (6) Bank shall at any time in good faith deem itself insecure with respect to any of the Obligations.
(b) If Debtor shall be in default: Bank may. at its option and without notice or demand, declare the Obligations to be immediately due and payable. Bank shall have the rights of a secured party under the Uniform Commercial Code. Debtor agrees that any notice that Bank must give to Debtor may be given by mailing it, postage prepaid, to Debtor at the address below at least 10 days before a sale.
5. Other (a) Debtor shall pay all costs and expenses (including reasonable attorneys' fees) incurred by Bank in enforcing, collecting, or realizing upon any of the Obligations or the Collateral, or in safeguarding it, which shall become part of the Obligations. (b) This Commercial Security Agreement shall be governed by the laws of Illinois. (c) All terms used herein that are defined in the Uniform Commercial Code have the meanings used in that statute. (d) All rights of Bank under this Commercial Security Agreement and in the Collateral may be exercised by any assignee or successor to Bank. All Obligations of Debtor bind Debtor's heirs, executors, administrators, successors, and assigns. (e) Bank's rights hereunder may be modified only by a written instrument and no waiver will be effective unless in writing.
Dated ____________________________, 20____
________________________________________________
Debtor
________________________________________________
By Title
Address: ________________________________________
________________________________________________
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