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PLAYBOOK TEMPLATES

Loan Agreement (Unsecured)

An Unsecured Loan Agreement establishes credit terms without collateral, relying on borrower creditworthiness. This playbook focuses on interest provisions, representations, and remedies for nonpayment.

Security & Collateral

Why This Matters: Inadequate or poorly perfected security undermines recovery prospects on default. A robust collateral structure protects lenders while giving borrowers clarity on encumbrance limits.

Negotiation strategy

If you're the Lender:

Ensure the security interest is comprehensive and enforceable. Prioritize perfection and jurisdictional compliance to safeguard recovery prospects.

If you're the Borrower:

Negotiate clear terms on encumbrance limits and ensure all collateral documents are consistent and enforceable under relevant jurisdictions.

Essential elements

1

Security Interest

Grants lien on collateral.
2

Perfection of Security

Actions to perfect interest.
3

Priority of Security

Establishes first priority lien.

Action framework

ACCEPT

Propose edits if jurisdictional requirements change or if additional collateral is added.

EDIT

Reject if the security interest is not enforceable or lacks priority.

ADD

Add clauses for jurisdiction-specific compliance or additional collateral requirements.

PRO TIP

Always verify the enforceability of security interests under the governing law of the agreement.

Real-world examples

FAVORABLE

Preferred Security Interest Clause

"The Borrower hereby grants to the Lender a continuing security interest in, and lien on, all of the Borrower's right, title, and interest in and to the Collateral, whether now owned or hereafter acquired, and all proceeds and products thereof, to secure the prompt payment and performance of the Obligations."
NEUTRAL

Texas Compliance Clause

"Verify any additional state-specific requirements for enforceability."
UNFAVORABLE

Inadequate Security Clause

"The Borrower grants a security interest without specifying priority or perfection requirements."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, ensure additional collateral and stringent enforcement clauses to mitigate potential losses.

Cross-Border Transactions

Cross-border transactions require compliance with multiple jurisdictions, impacting enforceability and priority.

Startup Financing

Startups may have limited assets; focus on intellectual property and future revenue streams as collateral.

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WEEK 1
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Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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