As a general rule, the main elements of the general security agreement include that the borrower may have limited opportunities to provide guarantees that would satisfy the lenders. Even if a guarantee agreement only gives a partial interest in the protection of the asset, lenders may be reluctant to offer financing for the property. The possibility of cross-protection would remain, which would constrain the liquidity of the asset in an attempt to release its value and provide compensation to lenders. The GSA contract is valid for a period of five years. After five years, it becomes disabled and must be renewed every five years. It is very important to check all the information contained in the agreement regarding the items presented. In the event of an error, the GSA automatically becomes invalid. If the debtor agrees, the creditor can achieve perfection by taking control of the security rights. The security contract must be certified by the debtor, i.e.
it must either bear the debtor`s signature or be marked electronically. It must contain an appropriate description of the security rights and use words that show the intention to create a guarantee right (the right to demand repayment of the loan by attachment of the guarantees). For the collateral contract to be valid, the borrower must normally have rights to the security rights at the time of performance of the contract. .