What is the meaning of security agreement?

security agreement is an agreement between one or more debtors and one or more creditors in which the debtor grants the creditor an interest in the debtor's personal property as collateral for the debt. (Alternatively or in addition, the collateral may be property owned by a guarantor or by another third party.) As used in Article 9 of the Uniform Commercial Code, it is an agreement that: is in writing; gives the names of the parties; is signed or authenticated by the debtor; describes the collateral; and includes language stating that the debtor is granting or giving the security interest in the collateral to the creditor. While the security agreement establishes the creditor's interest in the collateral, it does not establish the priority of the creditor's interest relative to the interests of other creditors. See: financing statements and perfection.