Va. Code Anno. §8.9A-509 (b) (Michie 1950) [Security Agreement as Authorization. In authentication or by binding the debtor by a guarantee contract, a debtor or a new debtor authorizes the filing of a first declaration of financing and an amendment covering the guarantees described in the guarantee agreement …]. The agreement allows the parties to sign and issue them electronically. This means that it is not necessary for the parties to sign a single printed agreement. Instead, they can choose to sign the same electronic copy with electronic signatures, or they can sign separate electronic copies and send them via email. Often, secured parties use UCC-1 funding declaration forms to achieve the advanced security interests set out in a security agreement. This form, prepared and signed by both parties, contains the following information: Three things must be in place to allow the secured party to obtain a protected security right in the security rights: (1) The insured party must pay for the preservation of the interest in the security or give something of value; (2) the debtor must hold the security or have good security authority to mortgage the security and (3) the debtor must sign a contract of guarantee. As soon as the three points occur, the insured party rightfully has a guarantee right over the guarantees. This process is called « seizure » of a security interest.
In the event that the first two subject-matter is present, the secured party must be accompanied by a related security interest when the debtor signs the security agreement. Second, the insured party must « perfect » its security interest. While the rules vary by location, a financing statement normally requires only the identification of the parties and the provision of a description of the security rights. In most countries, you can easily provide this information by filling out form UCC-1 and submitting it to the office of the Minister of Foreign Affairs. You can find your country`s requirements online or by phone at your National Office. There will come a time when your customer will need you very much. They may have exceeded their credit limit or be caught in default with the credit agreement. .