Drafting and Negotiating Security Agreements and Other Collateral Agreements

This course will introduce students to security agreements and the key components thereto. It will start by explaining when a security agreement is needed and the process for drafting a security agreement. It will then discuss the concept of perfection of a security interest, including its importance and the process of perfection in various types of collateral. Finally, it will explain the due diligence process involved in a security agreement transaction. The course is designed to provide junior associates with a greater understanding of secured transactions, especially when drafting and negotiating a security agreement.

Level: Basic-Foundational

This class is suitable for attorneys who have a general interest in, or are exposed to, commercial lending transactions.

Upon completion of this course, participants will be able to:

• Discuss the key components contained in a security agreement
• Understand how to draft a standard security agreement
• Explain how to perfect a security interest in various types of collateral (e.g., goods, intellectual property and capital stock)
• Conduct due diligence in connection with obtaining a security interest
• Review comments received on a security agreement and determine whether those comments should be accepted or rejected and why
  
  

Students are presented with a banker that has reached out regarding a proposed credit facility consisting of a term loan and a revolving loan facility that the bank team has greenlighted for approval. Students are asked to (i) review the borrower’s comments on the first draft of the Security Agreement and prepare a memo explaining why certain comments were accepted or declined and (ii) review the organizational documents provided by the borrower and ensure that the UCC financing statement is accurately prepared for filing.

2 CLE Credits is available for each course.