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The Pledge Security Agreement is a critical document in Nigerian secured lending transactions, used to create security interests over movable assets in compliance with the Secured Transactions in Movable Assets Act 2017. It is typically employed when a lender requires security over specific movable assets such as equipment, inventory, receivables, or securities. The agreement must be properly structured to ensure enforceability under Nigerian law and requires registration with the National Collateral Registry. This document is essential in various commercial contexts, from simple bilateral lending arrangements to complex syndicated facilities, and must address specific Nigerian law requirements regarding creation, perfection, and enforcement of security interests. The agreement should clearly identify the pledged assets, detail the secured obligations, and establish comprehensive enforcement mechanisms that comply with local regulations.

1. Parties: Identification of the Pledgor and Pledgee with full legal names and addresses

2. Background: Context of the security arrangement and reference to any underlying credit facility or main agreement

3. Definitions: Definitions of key terms used throughout the agreement, including specific Nigerian legal terminology

4. Grant of Security Interest: Express creation of the security interest and detailed description of pledged assets

5. Secured Obligations: Definition and scope of the obligations being secured by the pledge

6. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and status of pledged assets

7. Covenants: Ongoing obligations of the Pledgor regarding maintenance and preservation of pledged assets

8. Perfection Requirements: Requirements for registration with National Collateral Registry and other perfection steps

9. Events of Default: Circumstances constituting default under the agreement

10. Enforcement: Rights and remedies of the Pledgee upon default, compliant with Nigerian law

11. Power of Attorney: Appointment of Pledgee as Pledgor's attorney for enforcement purposes

12. Notices: Process and requirements for giving notices under the agreement

13. Governing Law and Jurisdiction: Confirmation of Nigerian law as governing law and jurisdiction of Nigerian courts