Form 5 Security Agreement: Accounts And Contract Rights printable pdf download

§ 11-9-203 Form 5 Security Agreement: Accounts And Contract Rights

1. The undersigned Debtor hereby assigns and conveys to ___________, the Secured

Party, a security title to all his accounts and contract rights and to all goods the sale or

delivery of which gave rise to an account or contract right, should such goods thereafter

come into the possession of either the Debtor or the Secured Party.

2. This agreement is made for the purpose of securing performance by the Debtor of

all obligations owing to the Secured Party, whether presently existing or hereafter

contracted.

3. Obligations secured by this agreement shall be paid (on demand) (according to

their terms, except that should the Secured Party in good faith have reason to believe that

the Debtor's ability to continue payment in ordinary course of business has become

impaired the Secured Party may declare all obligations so secured to be immediately due

and payable).

4. At the time of each application for an advance, the Debtor shall submit duplicate

copies of contracts or invoices evidencing each account accompanied by a statement

showing the total outstanding advances, the total value of property assigned and still held

as collateral under this agreement and the amount of the advance requested.

5. The Secured Party may in its discretion make advances up to ___________% of

the accounts assigned to it that are not overdue ___________ days after the date of the

first invoice or bill representing it. Any account that, to the knowledge of the Debtor,

becomes subject to a claimed defense by the account debtor shall be treated as an overdue

account. Accounts that become overdue may at the discretion of the Secured Party be

held by it as additional collateral or be reassigned to the Debtor.

6. Payments made by account debtors shall be promptly remitted by the Debtor to the

Secured Party to be applied toward payment of the obligations secured by this agreement,

and any employee of the Secured Party is hereby authorized to indorse any instruments so

forwarded in the Debtor's name so that such proceeds can be effectually realized. All

proceeds, including cash received from an account debtor, shall be held for the Secured

Party and not commingled with other funds in the possession of the Debtor. Cash

proceeds shall be (promptly remitted to the Secured Party by ___________)

(___________).

7. The Secured Party may on default by the Debtor, or at any other time that it may

deem it necessary or desirable, notify any account debtors to make payment directly to

the Secured Party. The Debtor shall cooperate in facilitating the exercise of this right of

the Secured Party by sending the necessary notices, or otherwise, on demand by the

Secured Party.

8. Should the Debtor be the subject of a petition in bankruptcy or other insolvency

proceeding or make a composition with or general assignment for the benefit of creditors

or be subject to proceedings for the purpose of forcing it, or voluntarily offer, to

surrender its corporate charter, it shall be in default of this agreement.

9. In the event of default under this agreement or any obligation secured by it, the

Secured Party may proceed to enforce its rights on the obligations secured and foreclose

this security agreement as is provided by the Uniform Commercial Code as effective in

Georgia on the date of this agreement.

10. Any notice given by the Secured Party under this agreement or under the Uniform

Commercial Code shall be adequately given if it is sent by first class mail, addressed to

Form 5 Security Agreement: Accounts And Contract Rights

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