Selected key concept — grant of security

There are a number of key concepts that are relevant in all security agreements, including both a GSA and a SSA. One of these key concepts is the grant of security. Under the PPS Act regime, an entity who is a borrower or debtor is said to grant a "security interest" instead of what use to be referred to as the granting a "charge". This entity who is providing the security interest is now called the “grantor”, and is much less likely to be called the “chargor”.

This guidance note explains the provisions in a security agreement regarding the grant of security. These provisions are sometimes called the “security clause”. Examples as well as practice tips are provided to help legal practitioners apply the knowledge in practice.

See Selected key concept — grant of security.