Security Agreement Type 1
BE IT ACKNOWLEDGED that:
(Debtor) grants to __________________________ and its successors and assigns (Secured Party) a security interest in the following property (collateral) as herein described:
This security interest is granted to secure payment and performance on the following obligations owed Secured Party from Debtor:
Debtor hereby acknowledges to Secured Party, each of the following:
1. The collateral shall also include any after acquired property of a like nature and description and all appurtenances, proceeds or products thereto.
2. The collateral shall be kept at the Debtor's above address, and adequately insured at the request of Secured Party.
3. The Debtor owns the collateral and it is free from any other caveat, lien, encumbrance, and security interest and the Debtor has full authority to grant this security interest.
4. Debtor agrees to execute such financing statements as are reasonably required by Secured Party.
5. Upon default in payment or performance of any obligation for which this security interest is granted, or breach of any provision of this agreement, then in such instance secured party may declare all obligations immediately due and payable.
6. Transfer Of Rights. This Agreement shall be binding on any successors of the parties.
7. Termination. This Agreement may be terminated before its initial term is completed by any party at any time, for any reason, provided that at least 30 days advance written notice of termination is given to the non-terminating party by the terminating party.
8. Arbitration. Any disputes pertaining said contractual arrangement being affairs that cannot be settled amicably shall be submitted to an arbitrator under the Rules of the Australian Arbitration Association or like organisation in the City of [city], whose award may be reduced to judgment in any court of competent jurisdiction.
9. Amendment. This Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties.
10. Severability. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
11. Waiver Of Contractual Right. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
12. No Representation. Neither party has made any representations nor promises, other than those contained in this agreement or in some further writing signed by the party making the representation or promise.
13. Interpretation. This Agreement will in all events be construed as a whole, according to its fair meaning, and not strictly for or against a party merely because that party (or the party's legal counsel) drafted the Agreement. The headings, captions, and titles in this legal Agreement are merely for reference and do not define, limit, extend, or describe the scope of this Agreement or any provision herein. Unless the context requires otherwise, (a) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine, and neuter, and (b) the word including means including without limitation.
14. Advice Of Legal Counsel. Each individual party to this Agreement represents and warrants to each other party that such party has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, and has executed this Agreement based upon such party's own judgment and advice of independent legal counsel.
15. Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law, then that provision will be fully severable. This Agreement will be construed and enforced as if the illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid, or unenforceable provision, there will be added automatically, as a part of this Agreement, a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid and enforceable.
16. Automatic Renewal. This Agreement will automatically renew, for successive 12 month periods, after its expiration unless written notice of termination is given by either party.
17. Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each party to this Agreement will execute and deliver any additional documents and perform any additional acts that may be necessary or appropriate to effectuate and perform its obligations under this Agreement and the transactions contemplated hereby.
18. Entire Agreement. This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.
19. Applicable Law. This Agreement shall be governed by the laws of the State of [State].
Signed in duplicate: