Free Cafe Security Agreement

This Cafe Security Agreement (the "Agreement") is entered into on [Date], between:

I. Parties

[Second Party], a financial institution organized and existing under the laws of [State], having its principal place of business at [Second Party Address] (hereinafter referred to as "Lender"),

and

[Your Company Name], a cafe business organized and existing under the laws of [State], located at [Your Company Address] (hereinafter referred to as "Borrower").

II. Definitions

1. Collateral: The assets described in Section III below, pledged as security for the loan.

2. Default: The occurrence of any event listed in Section VII below.

III. Grant of Security Interest

Borrower hereby grants to Lender a security interest in the following collateral (the "Collateral"):

1. All equipment, including but not limited to coffee machines, refrigerators, and kitchen appliances located at [Your Company Address].

2. All furniture and fixtures located at [Your Company Address], including tables, chairs, and decorative items.

3. All current and future inventory of goods, including food and beverages, located at [Your Company Address].

IV. Loan Details

1. Loan Amount: $[00].

2. Interest Rate: [00%] per annum.

3. Repayment Terms: The loan shall be repaid in [00] installments of $[00] each, commencing on [Date], with the final installment due on [Date].

4. Maturity Date: [Date].

V. Representations and Warranties

1. Borrower’s Representations: Borrower represents and warrants that it owns the Collateral free and clear of any liens or encumbrances, except for those granted to Lender under this Agreement.

2. Lender’s Reliance: Lender is entering into this Agreement in reliance upon Borrower’s representations and warranties.

VI. Covenants

1. Maintenance of Collateral: Borrower shall keep the Collateral in good condition and repair, and shall not remove the Collateral from [Your Company Address] without Lender’s prior written consent.

2. Insurance: Borrower shall maintain insurance coverage on the Collateral, with Lender named as loss payee.

3. No Further Encumbrances: Borrower shall not grant any further security interests in the Collateral without Lender’s prior written consent.

VII. Events of Default

1. Default: The following events shall constitute an event of default under this Agreement:

a. Failure to make any payment when due under this Agreement.

b. Insolvency or bankruptcy of Borrower.

c. Breach of any covenant or representation under this Agreement.

2. Remedies upon Default: Upon the occurrence of an Event of Default, Lender shall have the right to exercise any and all remedies available under applicable law, including but not limited to the right to seize and sell the Collateral.

VIII. Miscellaneous

1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State].

2. Amendments: Any amendments or modifications to this Agreement must be in writing and signed by both parties.

3. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Cafe Security Agreement as of the date first above written.

[Representative's Name]

[Second Party]

[Date]

[Your Name]

[Your Company Name]

[Date]

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