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(b) Agreement on the security of personal property. Personal property is all types of real estate that are not interested in land and include equipment, inventory, cash, accounts and investments. The most common type of security agreement is a “general security agreement,” sometimes referred to as “all-PAAP,” which represents “all current and acquired assets.” This means that the guarantee applies to everything the borrower currently owns and everything the borrower may have in the future. The other form of the security agreement is a “specific security agreement” limited to certain personal goods. Some security agreements are sometimes used to limit security to a certain category of properties, or even to a specific location (. B, for example, a project website). Specific rules apply to serial items, such. B than privately owned vehicles and consumer goods. Security agreements are registered in the Personal Property Registry. The terms of the agreements on the priorities and issues they raise are limited by the needs of the parties and the imagination of creditors and their lawyers. While in this article, any type of agreement has been considered separate and separate, some or all elements of any type of agreement can be grouped into a single agreement.

This sometimes happens in an interbank agreement, or in an agreement called the “deferral, subordination and status quo agreement,” or in a similar name describing the effect of the provisions of the agreement. [8] Pari passu means “at the same rate” or (generally) “equal.” The other terminology, sometimes used to describe the equitable distribution of payments or revenue between secured creditors, is “proportional” or “proportionate.” The meaning of these terms may vary depending on their definition in the agreement and how they are used in the context. A subordination agreement is a legal document that classifies one debt as less than another, which is a priority in recovering repayment from a debtor. Debt priority can become extremely important when a debtor becomes insolvent or declares bankruptcy. Subordination contracts are the most common in the field of mortgages. When an individual borrows a second mortgage, that second mortgage has a lower priority than the first mortgage, but those priorities may be disrupted by refinancing the original loan. A subordination agreement (sometimes called a priority agreement or priority agreement) is granted by a creditor for the benefit of another creditor and generally deals with subordination by the creditor granting both the security interests governed by the law and the right to payment. In the context of a subordination agreement, the subordinate creditor acknowledges that a subordination agreement recognizes that the debt or interest of one party is greater than that of another party when the borrower`s assets must be liquidated to repay the debt. Individuals and businesses go to credit institutions when they have to borrow money. The lender is compensated if it receives interest on the amount borrowed, unless the borrower is late in its payments.

The lender could demand a subordination agreement to protect its interests if the borrower places additional pawn rights against the property, z.B. if he takes out a second mortgage. [6] There may be another arrangement for payments to the subordinated creditor, such as .B admission of certain “eligible payments” defined for him, as long as the debtor is not late with the priority creditor. A deferral agreement only applies to payments that a debtor must make to his creditor and not to the security interest he has granted. As part of a deferral agreement, the suspensive creditor agrees to defer receipt of payments from the debtor on certain conditions, for example. B until the principal creditor is paid in full.

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