A Security Agreement is a legally binding contract between two parties that outlines the terms and conditions of a loan or transaction involving the exchange of assets and/or services. The agreement establishes the rights and responsibilities of both parties, including who will provide security for the loan, when payments will be due, and how default or breach of the agreement will be handled. This document is important to ensure that all parties know their obligations and are in agreement on how any potential disputes may be resolved. It is crucial to ensure that all parties understand their obligations before signing a Security Agreement.