Security Agreement for Stocks and Bonds
FOR VALUE RECEIVED the undersigned hereby deposits with ________________________ HOLDER as collateral security to secure the payment of the following debt:
the following shares of stock or bonds, described as:
COMPANY NAME______________________________ ______ OF SHARES. CERTIFICATE NUMBER___________________
It is understood and agreed that:
1. The holder may assign or transfer the said debt and the collateral secured hereunder.
2. In the event there shall be a stock dividend or further issue of stock in the Company to the undersigned, the undersigned shall deposit said shares as additional collateral for the debt.
3. That while the collateral remains on deposit, the undersigned shall have the full right to vote the shares and shall be entitled to all dividend income.
4. That the undersigned shall not issue any other proxy or assignment of rights to the deposited shares or bonds.
5. The undersigned warrants and represents it has good title to the shares or bonds being deposited as security, that they are free from other liens and encumbrances, and that the undersigned has full authority to transfer the said shares or bonds as collateral security.
6. In the event of default of payment of the debt, or breach of this deposit agreement, the holder shall have full rights to foreclose on the deposited shares or bonds and to exercise its rights as a secured party pursuant to this or any other agreement between the parties or any statute, the said rights being cumulative.
Dated this_____ day of__________________, 201(X).