Home Blog Security Agreement Drafting: Key Terms, Tips, Lawyer Help

Security Agreement Drafting: Key Terms, Tips, Lawyer Help

Jump to Section

Quick Facts — Security Agreement Lawyers

What is Security Agreement Drafting?

A security agreement is a legal contract between a lender and borrower. It enables a lender to seize a borrower’s collateral if the borrower doesn’t repay a loan. This agreement must include specific terms and conditions to ensure accuracy and fairness.

Read the rest of this article to explore how to draft a security agreement, such as what core components are required and how a lawyer will help you navigate the agreement-drafting process.

What are Common Terms in a Security Agreement?

A security agreement should include key terms such as the following:

  • Payments. The agreement must specify a clear repayment schedule.
  • Collateral. There must be clarity about what property or assets will be used as security under the agreement.
  • Default. This clause explains what constitutes a default on loan terms and causes the lender to seize the collateral.
  • Grant of security interest. This basically states that the borrower grants the lender a security interest in the collateral.
  • Lender rights. The lender’s rights must be stated, such as if they can sell the collateral to cover the debt.
  • Borrower duties. The borrower’s obligations must be outlined, such as keeping property insurance for the collateral.
  • Signatures. The agreement must be signed by both parties to be valid.

What are TIps for Drafting a Security Agreement?

When drafting a security agreement, there are specific things to bear in mind. Here’s a rundown of some important ones.

Detail the Security

The security or collateral in the agreement can include real estate or anything else that the lender considers appropriate for the loan repayment. Detail the assets properly so there’s no confusion over what can be possessed in the event of a payment default.

For property being used as collateral, a description would include a legal description and physical address.

Describe the Secured Financials

You should explain exactly what the collateral is securing, such as if it’s a loan or revolving line of credit. Including a broad future advances clause enables the same collateral listed in the agreement to secure future loans without requiring a new agreement.

Explain Insurance Requirements

Depending on the agreement, the contract might include an insurance clause for how the collateral can be insured to protect it against damage. Insurance is important to consider as it protects the lender against financial losses.

Mention Defaults

You should specify how defaults work and what their consequences are. For example, if you’re dealing with a real estate loan, missing payments will be considered default. Other events that can trigger default include filing for bankruptcy or providing false information, for example.

The agreement should also specify remedies that the lender can use to recover the money.

Clarify Borrower Duties

The borrower’s responsibilities must be stated clearly so there’s no uncertainty. This can include explaining that the borrower will make loan payments on time, keep collateral in good condition, and maintain insurance.

Check it Against Related Documents

For consistency, your security agreement must be coordinated with related documents. In real estate, these documents could include promissory notes, guarantees, and/or a loan agreement so that there’s no doubt over which debt is backed by the collateral.

How Does a Lawyer Draft a Security Agreement?

Since security agreements need to be precise and accurate, it can help you to hire a lawyer to draft yours for you, especially if you’ve never written one before.

A lawyer will assist you by:

  • Ensuring both parties are properly named with accurate legal information. This provides accountability. A lawyer will know what details to include, such as matching a business’s name to what’s mentioned on its formation documents instead of using a trade name.
  • Describing collateral properly with accurate legal descriptions.
  • Stating which loans or financial obligations are secured by the collateral so that there’s no confusion between parties.
  • Clarifying what constitutes a default in the specific agreement, such as missed payments, as well as what the lender’s remedies will be.
  • Confirming and explaining both parties’ duties and roles, such as regarding insurance and maintenance.
  • Complying with all relevant laws, regulations, and jurisdiction requirements.
  • Verifying all details prior to execution, such as signing the document.
  • Reviewing a security agreement that’s been drafted so that you can feel confident its terms are clear and specific.

Where to Find a Lawyer for Security Agreement Drafting

If you need to hire a lawyer to draft a security agreement for you from scratch, you don’t have to take lots of time out of your schedule to find one who’s reputable. On online legal platforms, you can access a network of qualified lawyers who are experienced to help you from the comfort of your home.

ContractsCounsel is one of the largest online legal marketplaces that connects you to a curated network of vetted lawyers. Since all the lawyers on the platform have experience in contract drafting and review, they can ensure your agreement is drafted with clarity.

Here are the steps to follow to request that a lawyer drafts your security agreement.

  1. Go to the ContractsCounsel marketplace.
  2. Post your project for free. Include a few details to help you find the most suitable lawyer, such as why you require the agreement.
  3. Receive multiple bids from lawyers directly on the platform who have the experience and are ready to help you.
  4. Review the lawyers’ profiles. Go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials, to help you hire the most suitable lawyer.
  5. Connect with a lawyer and hire them to draft your security agreement for a flat fee.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Meet some of our Lawyers

Keidi C. on ContractsCounsel
View Keidi
5.0 (19)
Member Since:
August 25, 2021

Keidi C.

Principal Attorney
Free Consultation
Boston, MA
28 Yrs Experience
Licensed in MA, NY
New England Law | Boston

Keidi S. Carrington brings a wealth of legal knowledge and business experience in the financial services area with a particular focus on investment management. She is a former securities examiner at the United States Securities & Exchange Commission (SEC) and Associate Counsel at State Street Bank & Trust and has consulted for various investment houses and private investment entities. Her work has included developing a mutual fund that invested in equity securities of listed real estate investment trusts (REITs) and other listed real estate companies; establishing private equity and hedge funds that help clients raise capital by preparing offering materials, negotiating with prospective investors, preparing partnership and LLC operating agreements and advising on and documenting management arrangements; advising on the establishment of Initial Coin Offerings (ICOs/Token Offerings) and counseling SEC registered and state investment advisers regarding organizational structure and compliance. Ms. Carrington is a graduate of Johns Hopkins University with a B.A. in International Relations. She earned her Juris Doctorate from New England Law | Boston and her LL.M. in Banking and Financial Law from Boston University School of Law. She is admitted to practice in Massachusetts and New York. Currently, her practice focuses on assisting investors, start-ups, small and mid-size businesses with their legal needs in the areas of corporate and securities law.

Recent  ContractsCounsel Client  Review:
5.0

"Received very meaningful advice and I hope to work with you in the future."

Donya G. on ContractsCounsel
View Donya
4.9 (61)
Member Since:
July 11, 2020

Donya G.

Contract, M&A, E-Commerce Attorney; Contract Dispute and Dispute Resolution Specialists
Free Consultation
United States
26 Yrs Experience
Licensed in CT, NY
Pace University School of Law

I am a Contracts and Mergers & Acquisitions Attorney with more than 25 years of diverse legal and business experience. My practice focuses on mergers and acquisitions, commercial contracts, contract dispute resolution, and a broad range of business-related legal matters. I have extensive experience managing and closing transactions across a variety of industries, including SaaS, IT, eCommerce, franchises, agencies, and food services. I take a practical, business-oriented approach to transactions, helping clients efficiently navigate complex deals from initial structuring and negotiation through execution and closing. My combined legal, litigation, financial, and business experience allows me to deliver strategic, efficient, and practical solutions tailored to my clients’ objectives, whether in deal negotiations, contract structuring, dispute resolution, or complex business transactions

Recent  ContractsCounsel Client  Review:
5.0

"Donya was an amazing partner and was very patient and diligent in dealing with the APA and OA. I highly recommend her as she knows her stuff, is confident, and always has your back."

Rhea d. on ContractsCounsel
View Rhea
5.0 (82)
Member Since:
April 12, 2023

Rhea d.

Attorney
Free Consultation
San Francisco Bay Area, California
29 Yrs Experience
Licensed in CA, DC
University of Utah

Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.

Recent  ContractsCounsel Client  Review:
5.0

"Rhea is very knowledgable, quick, and provides great communication."

Jason H. on ContractsCounsel
View Jason
4.9 (21)
Member Since:
March 5, 2023

Jason H.

Managing Attorney
Free Consultation
Dallas, Texas
25 Yrs Experience
Licensed in TX, VA
Regent University, School of Law

Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.

Recent  ContractsCounsel Client  Review:
5.0

"Wonderful attorney! He was extremely professional, answered all of my questions and was patient with my complicated legal situation. Don’t hesitate to hire him."

Scott S. on ContractsCounsel
View Scott
5.0 (66)
Member Since:
October 27, 2021

Scott S.

Attorney
Free Consultation
New York, NY
19 Yrs Experience
Licensed in NY
Benjamin Cardozo School of Law

I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.

Recent  ContractsCounsel Client  Review:
5.0

"Scott helped me reviewed the contracts and saved me from getting into a trap of an outsourced sales services provider from Philippines and Australia"

Miguel P. on ContractsCounsel
View Miguel
Member Since:
April 18, 2025
Lauren A. on ContractsCounsel
View Lauren
Member Since:
April 18, 2025

Lauren A.

Founder and Managing Attorney
Free Consultation
Charleston, SC
14 Yrs Experience
Licensed in NJ, SC
University of South Carolina School of Law

Lauren Acquaviva focuses her practice on alcohol licensing matters. Lauren has tried over one hundred tax and alcohol license cases at the South Carolina Administrative Law Court during her career. She also has handled appeals, including arguing before the South Carolina Court of Appeals and the South Carolina Supreme Court. A New Jersey native, Lauren graduated from Monmouth University Summa Cum Laude in 2009 with a B.S. in Social Work and a passion for advocating on behalf of children. Immediately thereafter, Lauren moved to South Carolina to attend the University of South Carolina School of Law from where she graduated in 2012 in the top third of her class. During law school Lauren became a member of the Mock Trial Bar where she honed her trial skills and fell in love with being in the court room. In September of 2012, shortly after graduating from law school with the desire to become a trial attorney, Lauren began working for the South Carolina Department of Revenue (SC DOR) where she spent six years litigating alcohol licensing and tax matters on behalf of the Department. Lauren left the SC DOR in October of 2018 and joined a Mount Pleasant Law firm. In October of 2019, Lauren founded Viva Law Firm so she could focus on helping people navigate the complexities of South Carolina’s alcohol regulations.

Find the best lawyer for your project

Browse Lawyers Now

See Real Security Agreement Projects

California Security agreement Drafting
  • California
  • 2 lawyer bids
  • $500 - $1,500
View Details
Texas SECURITY AGREEMENT between Debtor and Secured Party Review
  • Texas
  • 4 lawyer bids
  • $375 - $1,250
View Details
Washington Review of Seller Financing Acquisition Documents with Negotiation Support Review
  • Washington
  • 6 lawyer bids
  • $650 - $3,500
View Details

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Security Agreement?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers
SECURITY AGREEMENT DRAFTING LAWYERS BY CITY
See All Security Agreement Drafting Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city