Draft the collateral description in a security agreement
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Draft a collateral description from the assets the lawyer identifies, using a specific list or a category, and flag any phrase such as all assets or all personal property.
- What the lawyer must review
- Uniform Commercial Code § 9-108: a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. The section's examples include a specific listing, a category, a type of collateral defined in the Code (subject to the exceptions in the section), quantity, and a computational or allocational formula. A description of collateral as all the debtor's assets or all the debtor's personal property, or words of similar import, does not reasonably identify the collateral. The text that governs is the enactment in the state whose law applies. You check the description against that enactment before it is attached. This is the security agreement. It is not the financing statement.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.