Vessel Security Agreement
BoatWiki - Forms
Use of this form may have legal and tax implications.
You should
consult with an attorney or professional about any such concerns.
Introduction
The vessel security agreement form is designed for lender transactions where a boat is given over as collateral for the respective obligation. It is typically used in conjunction with a boat promissory note.
Context
This form is intended for recreational use and may not be suitable for complex transactions or commercial vessels. Copies of these are typically used in the respective loan recordings
Source
The form is available for download from the BoatWiki repository in Microsoft word format. It is fielded for tabbing purposes and ease of use. The non-field content can be altered by selecting the unprotect option from your application's tool dropdown menu. It must be re-protected after any such changes in order to regain the field functions.
Instructions
HEADER - Insert the borrower's legal name, lender's legal name and full description of the subject boat. This should include all known identification, documentation, and registration numbers. The parties addresses can be inserted below the signature line. Enter the loan principal amount and date of a respective promissory note which should not post date the security agreement.
OWNERSHIP - The example language is typical, but can be changed according to your preferences.
PERFECTION - Modify as necessary to identify the manner in which the loan is to be recorded.
ENCUMBRANCES - This example is typical language which can be modified to fit the circumstances.
INSURANCE - Modify this paragraph according to that agreed by the parties.
MAINTENANCE - Modify this paragraph according to that agreed by the parties.
OPERATION - Modify this paragraph according to that agreed by the parties.
DEFAULT - This dictates any actions to taken in the event of any breaches in the terms of the agreement. It may be modified to fit your preferences.
REIMBURSEMENT - This paragraph sets the terms of how any deficiencies are to be handled. It may be modified to fit your preferences.
SIGNATURE - A security agreement is typically signed by the borrower only. However, a signature line can be added for the lender if so desired. Although notarization is not typically required, it may be implemented with the notarial attachment. Include the physical address below the signatureline for both parties where service can be delivered if necessary.
Conclusion
This instrument can affect the legal rights of both parties and should be reviewed by an attorney regarding such concerns. Please help your fellow boaters by wiki-sharing any comments, corrections, or experiences in using this form.
Credits and References
6/30/2022 - Page initiated by Team BoatWiki.
