A security agreement under U.S. law is a contract that governs the relationship between the parties with some kind of financial transaction known as a secure transaction. In the case of a secure transaction, the Grantor (usually a borrower, but perhaps a surety or collateral) assigns the beneficiary (usually the lender) a security interest for personal property called security. Stocks, livestock and vehicles are examples of typical warranties. A guarantee contract is not used to transfer any shares in real estate (land/real estate), only personal property. The document used by lenders to obtain a right to pledge to real estate is a mortgage or an act of trust. Assuming that the customer`s only problem is the payments to creditors of the guarantee agreement and provided that a default has occurred (and possibly expropriated), the approach to solving the customer`s problem focuses on the prospects of the customer who prepays the guarantee agreement. If the client has a prospect of repayment, you can decide to ask the creditor to reinstate the contract and return the recovered property. If the client has the financial capacity to take over and the creditor refuses to accept it, consider a legal action to obtain a decision to restitutio integrum. Most of the problems faced by customers with secured goods relate to the repair of a creditor when the debtor has become insolvent in the event of payment under the guarantee contract. Make sure you get a copy of the customer`s security agreement.
(Note that security agreements – which differ from financing returns – are not filed in the Personal Property Registry and copies are only available by the client or creditor.) Under Dutch (Dutch) law, the Dutch civil code designates the guarantee as an agreement by which a third party undertakes a contractual creditor to comply with a debtor`s contractual obligations. Such a guarantee agreement is concluded between the surety company and the creditor. The debtor of the guaranteed commitment is not required to participate in such an agreement. It is even possible that such a guarantee agreement will be concluded without the debtor`s knowledge or agreement. Article 7:850 of the Dutch Civil Code is established: 1. A guarantee agreement is an agreement under which one of the parties (hereafter referred to as the guarantee) has committed to the other party (the “creditor”) to fulfil an obligation that a third party (the principal debtor) has owed or returned to the creditor.