What is a general security agreement (GSA)?
What is the purpose of the general security agreement?
What are the main elements of a general security agreement?
What information is necessary to register?
- Grantor details
- Secured party details (creditor and debtor information)
- Payment Method
- Collateral details
What are the debtor’s obligations?
The debtor is responsible for ensuring that all the clauses in the agreement are followed, such as:
- Third parties can’t make any decision regarding the collateral, without the lender’s permission
- The debtor can’t change the entity’s leadership without the lender’s approval
- Repay the agreed upon amount back to the lender