Quarterman Hodson & Morang, P.C. is experienced in drafting and reviewing Security Agreements as a part of the process of obtaining a Security Interest in collateral.
To be enforceable against collateral, a Security Agreement must be written, authenticated, and properly describe the collateral. Attachment via a security agreement must also be “perfected”, which typically occurs via the filing of a Financing Statement with the Clerk of Superior Court. However, the Security Agreement and method of attachment can differ depending on the type of collateral used, and furthermore, the method of attachment can affect the rights of the holder of the Security Interest in the event of default. A Uniform Commercial Code (UCC) record search may be necessary to determine whether there are outstanding Security Interests which may take priority over another.