Security Agreements General

Check the consistency. When adapting a CAG to a transaction, it is important to check both the GSA, the letter of commitment or the loan agreement, to ensure that they are consistent. This also involves ensuring that the GSA insures all personal property by which the insured party requires the guarantee, in accordance with the requirements of the letter of commitment or loan agreement. As a general rule, you should also have a proper credit agreement. And in some cases, this credit agreement would have conditions relating to the guarantee (if it is a secured loan). The main exception to the priority rule is personnel money security interest (PMSI), in which a supplier of goods or equipment assumes a guarantee on goods delivered (but not yet paid).