If a borrower mortgages as collateral a car belonging to a neighbor and the neighbor does not know and approve of this promise, the security agreement is ineffective. However, a guarantee agreement may specify that it includes after home ownership. If such a specification is included, a mortgage of „all cars owned by the borrower“ would include the neighbor`s car if the borrower bought that car from the neighbor. A secured debt instrument may contain a security agreement under its terms. If a security agreement includes commercial property as collateral, the lender may file a UCC-1 declaration that serves as a pledge right in the property. Since default represents such a serious risk, debtors must be fully aware of their obligations when entering into security agreements. .