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Form #1387

On accounts receivable

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On accounts receivable

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On accounts receivable.

Agreement made [Date], between _________, referred to as lender, and _________, referred to as borrower states as follows:

Lender has loaned borrower money, as evidenced by borrower's promissory note dated _________, in the amount of $_____ and it is contemplated that borrower may wish to borrow additional sums in the future.

Now, therefore, in consideration of the premises, the loan, and other good and valuable consideration, the parties here agree as follows:

1. As security for the payment of any and all obligations owed by borrower to lender, borrower conveys and grants to lender a security title to and a security interest in borrower's accounts receivable.

2. Borrower shall, at its own expense, collect all of its accounts receivable as they come due. Lender may, at any time, notify any of the parties obligated to borrower to make payment of such obligation of any amounts due or to become due directly to lender.

3. Borrower warrants that it has good and lawful title, free and clear of all liens and claims whatsoever, to the underlying property giving rise to the accounts receivable and the obligations of account debtors as set forth in Appendix A attached here. Borrower further warrants that the information listed in Appendix A is true and correct as of the date of this agreement.

4. Upon the occurrence of any of the following events: (a) nonpayment, when due, of any amount payable by borrower to lender; (b) insolvency of borrower as that term is defined in the Uniform Commercial Code as adopted by [applicable statute]; (c) dissolution, merger, consolidation, or transfer of a substantial portion of the assets of borrower; (d) misrepresentation or misstatement of a material fact contained here or the failure of borrower to perform any warranty or agreement contained here; any and all obligations of the borrower to the lender shall, at the option of the lender, and without demand or notice of any kind, be declared, and immediately after that shall become, due and payable.

5. Borrower will furnish to lender quarterly financial statements from the books of borrower including a balance sheet, profit and loss statement and statement of surplus, prepared by an independent certified public accountant.

6. This agreement shall be governed by the laws of the state of _________.

In witness, etc.



 
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Total Forms Contributed 69
 

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Terms Of Use

Submissions to this site, including any legal or business forms, posts, responses to questions or other communications by contributors are not intended as and should not be construed as legal advice. You are strongly encouraged to consult competent legal council before engaging in any action based upon content contained on this site.

These downloadable forms are only for personal use. Retransmission, redistribution, or any other commercial use is prohibited. This includes reposting forms from this site to another site offering free legal or other document forms for download.

Please note that the donator may have included different usage terms regarding this form, and you agree to abide by these terms. It is highly recommended that you have a licensed attorney review any legal documents for which you are searching in order to make sure that your needs are being properly and completely satisfied.

Your use of this site constitutes your acceptance of our terms of use and your agreement to hold this site, its officers, employees and any contributors to this site harmless for any damage you might incur from your use of any submissions contained on this site. If you do not agree to the above terms, please do not proceed.

These forms are provided to assist business owners and others in understanding important points to consider in different transactions. They are offered with the understanding that no legal advice, accounting, or other professional service is being offered by these documents or on this website. Laws vary in the different states. Agreements acceptable in one state may not be enforced the same way under the laws of another state. Also, agreements should relate specifically to the particular facts of each situation. Therefore, it is important to consult legal counsel whenever utilizing these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com is not engaged in recommending or referring members on the site or making claims about the competence, character or qualifications of its participating members.
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