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General Security Agreement Template for Nigeria

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Key Requirements PROMPT example:

General Security Agreement

"I need a General Security Agreement under Nigerian law for a manufacturing company providing security over its equipment, inventory, and receivables to a local bank, with the agreement to become effective from March 1, 2025."

Document background
The General Security Agreement is a fundamental document in Nigerian secured lending transactions, used to create and perfect security interests over a borrower's assets in favor of a lender or security trustee. It is essential for various financing arrangements, from simple bilateral loans to complex syndicated facilities. The agreement must comply with the Secured Transactions in Movable Assets Act 2017, Companies and Allied Matters Act 2020, and other relevant Nigerian legislation. It typically covers all aspects of the security arrangement, including asset description, perfection requirements, enforcement mechanisms, and the parties' respective rights and obligations. This document is particularly important in the Nigerian context given the country's specific registration requirements and enforcement procedures.
Suggested Sections

1. Parties: Identifies and defines the Secured Party and the Grantor/Debtor, including their full legal names, registration details, and addresses

2. Background: Sets out the context of the security arrangement, including reference to any underlying facilities or obligations being secured

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Grant of Security Interest: Core provision creating the security interest over the collateral in favor of the secured party

5. Secured Obligations: Defines the obligations being secured, including present and future debts

6. Representations and Warranties: Grantor's confirmations regarding ownership, authority, and status of collateral

7. Covenants: Ongoing obligations of the Grantor regarding maintenance, insurance, and dealing with the collateral

8. Events of Default: Circumstances that trigger enforcement rights

9. Enforcement Rights: Powers and remedies available to the Secured Party upon default

10. Power of Attorney: Appointment of Secured Party as Grantor's attorney for enforcement purposes

11. Notices: Process for giving formal notices under the agreement

12. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and amendments

Optional Sections

1. Special Provisions for Inventory: Additional provisions when security includes floating assets like inventory

2. Intellectual Property Rights: Specific provisions for securing intellectual property assets

3. Bank Accounts: Special provisions for security over bank accounts and operating procedures

4. Insurance Provisions: Detailed insurance requirements when collateral requires specific insurance coverage

5. Third Party Consents: Provisions regarding obtaining necessary third party consents for certain collateral

6. Priority Arrangements: Used when there are multiple secured parties requiring priority arrangements

7. Special Covenants for Regulated Assets: Additional requirements for assets subject to regulatory oversight

8. Cross-Border Provisions: Special provisions for security over assets located in multiple jurisdictions

Suggested Schedules

1. Schedule 1 - Description of Collateral: Detailed description and categorization of all assets subject to the security interest

2. Schedule 2 - Secured Obligations: Details of specific facilities, agreements, or obligations being secured

3. Schedule 3 - Permitted Security Interests: List of pre-existing or permitted security interests over the collateral

4. Schedule 4 - Locations of Collateral: List of all locations where collateral is or may be held

5. Schedule 5 - Form of Notice: Standard forms for various notices required under the agreement

6. Schedule 6 - Intellectual Property Register: Details of any intellectual property forming part of the collateral

7. Appendix A - Registration Requirements: Checklist of registration requirements for different types of collateral

8. Appendix B - Enforcement Procedures: Detailed procedures for enforcement in line with Nigerian law

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































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Relevant Industries

Banking & Financial Services

Manufacturing

Real Estate

Agriculture

Oil & Gas

Technology

Telecommunications

Infrastructure

Mining

Retail & Commerce

Healthcare

Transportation & Logistics

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit

Corporate Secretariat

Treasury

Operations

Collections

Asset Management

Relevant Roles

Chief Legal Officer

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Credit Manager

Security Trustee

Corporate Secretary

Transaction Manager

Loan Officer

Collections Manager

Asset Manager

Treasury Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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