Drafting security agreements manually requires extensive research into UCC Article 9 requirements, careful collateral descriptions, and precise granting language to create enforceable liens. Attorneys spend hours reviewing templates, verifying state-specific requirements, and ensuring all representations, covenants, and remedies clauses meet legal standards while avoiding ambiguities that could jeopardize the secured party's rights.
Drafting security agreements requires meticulous attention to UCC Article 9 requirements, precise collateral descriptions, and comprehensive covenant structures. Manual drafting takes hours of careful review across multiple transaction documents, with significant risk of inconsistencies that could jeopardize perfection and priority.
CaseMark analyzes your loan documents and automatically generates complete, UCC-compliant security agreements with proper collateral descriptions, representations, covenants, and remedies. Our AI ensures consistency across all transaction documents while incorporating sophisticated commercial lending provisions that protect your client's secured position.
This workflow is applicable across multiple practice areas and use cases
Security agreements are essential in corporate financing transactions to secure debt obligations and protect lender interests when companies raise capital through secured debt instruments.
Corporate finance attorneys regularly draft security agreements for leveraged buyouts, mezzanine financing, bridge loans, and other secured corporate debt transactions requiring UCC Article 9 compliance.
Security agreements secure acquisition financing and seller notes in M&A transactions, providing collateral protection for purchase price obligations and earn-out payments.
M&A attorneys frequently need security agreements for leveraged acquisitions, seller financing arrangements, and escrow security to protect parties during transaction closings and post-closing periods.
Security agreements secure venture debt, equipment financing, and bridge loans for portfolio companies, providing collateral protection for investors and lenders in growth-stage financing rounds.
VC and PE attorneys use security agreements for venture debt facilities, asset-based lending to portfolio companies, and securing obligations in recapitalizations and restructurings.
Financial services attorneys draft security agreements for regulated lending institutions to ensure compliance with banking regulations while securing commercial loans, lines of credit, and other financial products.
Financial institutions require UCC-compliant security agreements across their lending portfolios, making this workflow essential for in-house counsel and regulatory compliance teams at banks and financial services companies.
Bankruptcy attorneys analyze and draft security agreements to establish secured creditor status, perfect security interests, and litigate priority disputes in bankruptcy proceedings.
Security agreements are critical documents in bankruptcy cases for determining creditor priority, avoiding fraudulent transfers, and establishing the validity of liens under UCC Article 9.
CaseMark requires the underlying loan agreement or promissory note and debtor entity information showing the exact legal name and jurisdiction. Optional documents like collateral lists, term sheets, and prior security agreements help create more detailed and accurate agreements. The AI extracts key details like principal amounts, party names, and collateral descriptions from these documents to generate a comprehensive security agreement.
CaseMark incorporates UCC Article 9 requirements throughout the security agreement, including proper collateral descriptions using UCC classifications, comprehensive proceeds language, after-acquired property provisions where appropriate, and commercially reasonable remedies provisions. The AI ensures the agreement creates a valid security interest with language that satisfies both the security agreement sufficiency standard and financing statement filing requirements.
Yes, CaseMark can draft security agreements covering any combination of collateral types including equipment, inventory, accounts receivable, investment property, general intangibles, and other personal property. The AI uses both specific descriptions with identifying details and UCC category classifications, along with comprehensive proceeds and after-acquired property language to ensure complete coverage of the secured party's collateral package.
CaseMark tailors representations, warranties, covenants, and events of default to your specific transaction and collateral type. For example, inventory financing includes minimum inventory level covenants and reporting requirements, while equipment financing includes maintenance obligations and usage restrictions. The AI balances comprehensive secured party protections with commercially reasonable terms appropriate for sophisticated lending transactions.