# Purchase-Money Security Interest Agreement
**This Purchase-Money Security Interest Agreement ("Agreement") is made and entered into as of [Date], by and between:**
**Borrower:**
Name: [Borrower's Full Name]
Address: [Borrower's Address]
Email: [Borrower's Email Address]
Phone: [Borrower's Phone Number]
**Lender:**
Name: [Lender's Full Name or Company Name]
Address: [Lender's Address]
Email: [Lender's Email Address]
Phone: [Lender's Phone Number]
## RECITALS
WHEREAS, the Lender has agreed to lend the Borrower the sum of [Amount in Words] Dollars ($[Amount in Numerals]) to enable the Borrower to purchase the following goods ("Collateral"):
- Description of Goods: [Insert description of goods or equipment]
- Serial Numbers: [Insert serial numbers if applicable]
WHEREAS, the Borrower wishes to grant the Lender a Purchase-Money Security Interest in the Collateral to secure the repayment of the loan;
NOW, THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties agree as follows:
## 1. LOAN AMOUNT
The Lender agrees to loan the Borrower the sum of [Amount in Words] Dollars ($[Amount in Numerals]) (the "Loan Amount"), which the Borrower shall use exclusively for the purchase of the Collateral.
## 2. SECURITY INTEREST
The Borrower hereby grants to the Lender a Purchase-Money Security Interest in the Collateral to secure the repayment of the Loan Amount, together with any accrued interest as detailed in Section 3 below.
## 3. INTEREST RATE
The Loan Amount shall bear an interest rate of [Interest Rate] per annum, calculated on a [monthly/ quarterly/ yearly] basis, commencing on the date of this Agreement.
## 4. REPAYMENT TERMS
The Borrower agrees to repay the Loan Amount, together with accrued interest, in [Number of Payments] installments. Payments shall be made according to the following schedule:
- Due Date: [Insert Due Dates]
- Amount: [Insert Payment Amounts]
All payments shall be made to the Lender at the address stated above or at such other place as the Lender may designate in writing.
## 5. DEFAULT
In the event that the Borrower fails to make any payment when due, the Lender may declare the entire Loan Amount, together with accrued interest, immediately due and payable. The Lender may also enforce its rights under this Agreement, including the right to take possession of the Collateral.
## 6. PERFECTION OF SECURITY INTEREST
The Borrower agrees to cooperate with the Lender in taking any necessary steps to perfect the security interest created by this Agreement, including, but not limited to, filing a UCC-1 Financing Statement in the appropriate jurisdiction.
## 7. WARRANTIES
The Borrower represents and warrants that:
- The Collateral is free from any liens or encumbrances, except for the security interest granted hereunder.
- The Borrower has full authority to enter into this Agreement.
## 8. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
## 9. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the parties regarding the subject matter hereof and supersedes all prior negotiations, representations, and agreements.
## 10. AMENDMENTS
Any amendments or modifications to this Agreement must be made in writing and signed by both parties.
## IN WITNESS WHEREOF, the parties hereto have executed this Purchase-Money Security Interest Agreement as of the day and year first above written.
______________________________
**[Borrower's Full Name]**
Borrower
______________________________
**[Lender's Full Name or Company Name]**
Lender
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*Please consult with an attorney before using this document to ensure it meets your specific legal needs and is compliant with relevant laws.*