MOTOR VEHICLE SECURITY AGREEMENT 2025

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A SECURITY AGREEMENT is an agreement that. creates or provides for an interest in personal property. that secures payment or performance of an obligation.
The security agreement gives the bank the right to go against the collateral (car) if you default. The bank can repossess the collateral and can resell it to get payment on the loan.
A security interest exists when a borrower enters into a contract that allows the lender or secured party to take collateral that the borrower owns in the event that the borrower cannot pay back the loan. The term security interest is often used interchangeably with the term lien in the United States.
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