The security interest clause: the company may repossess any structure not paid in full
Clause 12 of 13 from my signed L&G Building & Concrete contract, with what it meant on my project and how I would rewrite it.
What it says
Company statement: contract ODR-001094, signed February 20, 2026
“Customer agrees that L&G Building and Concrete LLC may repossess any structure that is not paid for in full.”Sales Order Contract and Terms and Agreement
The order form also says the customer grants L&G a security interest in the structure, and that orders may be filled by “an independent manufacturer and/or installer.”
What happened on my project
My project record
The sales order has the customer grant L&G a security interest in the structure and agree that L&G may repossess any structure that is not paid for in full. The order also says orders may be filled by an independent manufacturer or installer.
Read with the payment schedule, the company holds most of the money and a claim on the building at the same time. On my lot the “structure” is half a steel frame bolted to a slab I paid for in full. Whether and how a security interest applies to that is a question for an attorney.
How I would rewrite it
- Strike the security interest, or limit it to materials not yet installed and amounts actually past due.
- Add that title to materials passes to the customer on delivery and payment of the materials invoice.
- Add that the customer may hire another contractor to complete the work after a stated notice period if the company stops.
The question to ask before signing: “If your crew stops halfway and I have paid for the materials on the ground, who owns them, and can I have someone else finish?”
My reading as a customer, not legal advice. A North Carolina construction attorney can tell you what the clause means for your contract.
Related
Previous clause: Schedule. Next clause: Damage to your property. All clauses.