security agreements

A security agreement is a legal contract between a borrower and a lender that grants the lender a security interest in specific property or assets of the borrower as collateral for a loan. If the borrower fails to repay the loan as agreed, the lender has the right to seize and sell that collateral to recover the owed money. Essentially, it provides the lender assurance that there is a tangible asset backing the loan, reducing their financial risk while allowing the borrower to access funds by offering collateral.