In some cases, perfection can be achieved at the moment when the security interest is linked. Typically, this occurs in combination with a purchase guarantee interest rate (PMSI) in which the debtor buys the item on credit from the secured party or the debtor receives a loan from the bank (which acts as the secured party) to purchase an item from a seller. Since default represents such a serious risk, debtors must be fully aware of their obligations when entering into security agreements. Security agreements often contain agreements containing provisions for the promotion of funds, a repayment plan or insurance requirements. The borrower may also authorize the lender to retain collateral for the loan until repayment. Guarantee agreements may also cover intangible assets such as patents or receivables. After the signature of the general guarantee agreement, the debtor is obliged to perform the acts referred to in the agreement, for example. B to repay a certain amount to the lender, without allowing third parties to take measures concerning the security of the guarantees without the agreement of the lender and not to change the control of the enterprise without the agreement of the lender. A valid guarantee agreement shall consist of at least a description of the security rights, a declaration of intent to accompany the guarantee and signatures of all parties concerned.
However, most security agreements go beyond these essential requirements. Many include covenants (or obligations of the debtor) and guarantees (guarantees). Examples of insurance or guarantees could be the following: the interest of security is largely governed by Article 9 of the Uniform Commercial Code (UCC).