Business Agreements

Substitution of Collateral and Release Consent

Vicky Randolph Vicky Randolph
How To Use

This review list is provided to inform you about this document in question and assist you in its preparation. This substitution of collateral document is a standard form to replace collateral due to a need by the debtor to sell the collateral.

  1. Make multiple copies. Give one copy to each party.  Keep copies in the related files.

Substitution of Collateral and Release Consent

__________________________, referred to as OWNER, and __________________________, referred to as SECURED PARTY, agree:

OWNER is indebted to SECURED PARTY pursuant to a note dated, _________________, in the original principal amount of $_________ (________________________________________ & _____/100 dollars); with a present total interest and principal balance of $_________ (_________________________________________ & _____/100 dollars), and a security agreement dated _________________ and has pledged as security for the note the following:

The DEBTOR has requested that SECURED PARTY release _______________________ as collateral for the obligation, but, that ___________________ be pledged as new collateral for the obligation. Accordingly, SECURED PARTY releases _______________________ as collateral for the obligation, and upon request of the DEBTOR shall execute such releases, UCC financing statement releases or other documents reasonably requested by the DEBTOR.

In all respects ________________________ shall be subject to the terms and conditions of the security agreement between the parties dated _______________. All other terms and conditions of the note and security agreement shall remain in full force and effect.

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Date

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OWNER

________________
SECURED PARTY