Designing a solid security package: General principles for taking security

Types of securities

6 minute read
12 January 2023


You will recall that a lender takes security in order to have some recourse to seize and sell the borrower's assets if the borrower defaults in the repayment of a loan, or the performance of its other covenants.

In this video we discuss:

  • Ownership of assets
  • Aligning security to the assets
  • Identifying other interests in collateral

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How we can help

If you have any specific questions about the points discussed or it's specific application, please reach out to our Banking & Finance Group or Stephanie Harvey.

About the series

Bankers often require security to be executed on loan transactions, but may not understand what it is, or how to identify complicating factors. This series will survey common security documents, and work through associated issues a financial professional may encounter in this space, including: guarantees, security agreements, mortgages, assignment of rents, assignment of insurance, share pledge agreements, and security agreements over intellectual property, among others.

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