What do you mean by General Security Agreement

Question

What do you mean by General Security Agreement?

Answer 1

The advantage of a general security agreement is that it gives a creditor the right to all of the debtor’s assets—both those in existence at the time of the agreement and those acquired after—if the debtor defaults on repayment. For the most part, general security agreements have replaced the floating charges that were used before modern PPSA legislation to give creditors first priority security interests in all personal property of debtors, not otherwise mortgaged or pledged, at the time of default under the loans secured by the floating charges.