Boat Security Agreement
BoatWiki - Definitions
Definition
A security agreement in boating terms can be defined as a legal instrument that secures or perfects a lender's interest in a particular boat. It is usually associated with a promissory note or loan contract that defines the terms of repayment. Upon execution of these instruments, the boat then serves as collateral.
Meaning
As collateral for a loan, the security agreement provides a means of foreclosure should the borrower default on the terms of a promissory note and/or any loan contracts. It also sets the stage for any related title or documentation recordings.
Context
In order to obtain a boat loan, the borrower will typically be required to offer up the boat as collateral. The lender then has a vested interest in the subject boat until the loan has been paid off. Such equity is typically recorded on the boat's title, through a UCC filing, or a preferred vessel mortgage as applicable.
Conclusion
Security agreements come in various formats, including that provided by BoatWiki, and may affect the borrower's legal rights. Any such concerns should be addressed with an attorney and/or titling professional. Please help your fellow boaters by wiki-sharing any comments or experiences with boat security agreements.
Credits and References
7/5/2022 - Page initiated by Team BoatWiki.
Advertisement
Advertisement
Advertisement
