Security Agreement Lietuviskai

A security agreement is a legally binding contract between two parties, typically a lender and a borrower, that outlines the terms of a loan and establishes the conditions under which the lender can seize collateral in the event of default. Such agreements are essential in protecting the interests of both parties in a loan transaction.

In Lithuania, a security agreement, also known as “apsauga susitarimas,” is required for any loan transaction involving a pledge of movable or immovable property. The agreement typically outlines the details of the collateral, the terms of the loan, and any conditions for default and repossession.

One of the key elements of a security agreement is the description of the collateral being pledged. This can include anything from real estate to stocks and bonds, but must be clearly defined in the agreement to avoid any confusion or disputes later on.

The terms of the loan, such as the interest rate and repayment schedule, are also included in the agreement. The lender and borrower must agree on these terms and ensure that they are feasible and realistic for both parties.

In the event of default, the security agreement outlines the conditions under which the lender can seize the collateral. This could include late or missed payments, failure to maintain insurance on the collateral, or any other breach of the agreement.

It is important to note that a security agreement is a legally binding contract and should be reviewed carefully by both parties before signing. It is also recommended to seek the advice of a legal professional to ensure that the agreement is enforceable and in compliance with local laws and regulations.

In summary, a security agreement in Lithuania is an essential component of any loan transaction involving collateral. It outlines the terms of the loan, conditions for default, and establishes the conditions for repossession of collateral. It is a legally binding contract that should be reviewed carefully by all parties involved.