Understanding and Utilizing Your Security Agreement. Complete Your UCC-1 Financing Statement Before moving forward

The Security Agreement and UCC-1 Financing Statement are fundamental tools for structuring private secured transactions under Uniform Commercial Code (UCC) Article 9. These instruments are widely used in legitimate finance and commercial law, not fringe legal theory.

Why You Created the Security Agreement

A Security Agreement is a private contract that grants a secured party a legal interest in the assets (collateral) of a debtor. In my case:

Debtor: Robert Gordon Gilster (the natural person and legal name, Ens Legis).
Secured Party: Robert Gilster Trust (your living revocable trust).

The Security Agreement gives the trust enforceable rights to Robert Gordon Gilster's commercial interests—such as intellectual property, accounts, and future assets—as security for obligations (e.g., representation, support, liability protection).

This arrangement is lawful and recognized in commerce. Trusts can own assets, enter into contracts, and secure interests. The agreement establishes who holds legal control over valuable property and business identity.

Why You Filed the UCC-1

The UCC-1 Financing Statement is a public notice filing. It puts the world—including banks, courts, and other potential creditors—on record that:

The Robert Gilster Trust holds a perfected security interest in the assets of Robert Gordon Gilster.
The collateral includes all commercial rights, trademark rights, and other specified interests outlined in your agreement.

This process is legal under UCC § 9-502 and UCC § 9-504. It doesn't transfer property, but it perfects your interest, giving it legal priority against third parties in the event of a dispute or claim.

Why It’s Legal and Common in Commercial Practice

The UCC governs secured transactions across the U.S. and is enacted in Nebraska and all other states.
Trusts are recognized legal entities that can hold assets and perfect interests.
Filing a UCC-1 does not make false claims—it simply states that a security interest exists and has been perfected.
This practice is used in asset protection, business structuring, IP monetization, and estate planning.

When You Use It

You present your UCC-1 and Security Agreement when:

Establishing your legal control of name/IP for business or credit purposes.
Demonstrating your trust's lien priority over your personal estate.
Structuring a secured transaction, such as issuing a promissory note or offering collateral.
Requesting financing or partnership from institutions who require evidence of asset control and proper structure.

How to Professionally Approach a Bank with Your Trust-Based Proposal

We need to add a section here about securing your commercial trademark and a ucc1 with a security agreement

1. Schedule with the Right Person

Ask for:

A private banker, relationship manager, or commercial loan officer
Explain you are representing a trust and seeking a secured asset-financing structure

2. Introduce Yourself and Your Trust

“Example: My name is Robert Gordon Gilster. I serve as the trustee of the Robert Gilster Trust, a living revocable trust with properly filed UCC security interest documentation. I'm looking to acquire a [vehicle/property] through a structured private financing transaction.”

3. Frame the Transaction with Professional Terms

“Rather than using standard consumer credit, we are proposing to issue a negotiable promissory note from the trust in favor of your institution. The trust holds a perfected security interest in my commercial instruments and assets, as evidenced by our UCC-1 filing. We are seeking to grant a security interest to the bank in the vehicle, and request that the note be monetized or used as consideration toward offsetting the acquisition cost.”

4. Clarify Your Position on Ownership and IP

“I have also federally registered the name ROBERT GORDON GILSTER with the USPTO, confirming our trust’s legal authority to act regarding my commercial persona and intellectual property.”

5. Offer Documentation

Have the following ready:

UCC-1 filing (between Debtor and Trust)
Trust instrument (with trustee powers)
USPTO Trademark certificate
Draft promissory note to review
Cover letter explaining the transaction

6. Close with Legal Basis

“We believe this transaction is valid under UCC Article 3 (Negotiable Instruments) and UCC Article 9 (Secured Transactions). We are prepared to cooperate with compliance and underwriting teams to structure this properly.”

Notes of Caution:

Most banks will not immediately understand this—you may need to work with private banks, trust companies, or even attorneys who can mediate.
Standard retail banks often can’t accept this type of transaction unless wrapped in a legally conventional format.
Do not use language like “monetize the note” unless you’re speaking with someone familiar with private placement, structured finance, or investment banking. Instead, say:
“We would like to use the note as part of the consideration or collateral structure for financing.”

BANK PROPOSAL LETTER

[Trust Letterhead - Robert Gilster Trust]
Robert Gilster Trust
Trustee: Robert Gordon Gilster
[Address in Nebraska]
[Phone Number]
[Email Address]
[Date]

To Whom It May Concern:

Subject: Proposal for Structured Vehicle Acquisition Financing via Trust Instrument

Dear [Banker’s Name or Lending Department],

I am writing as trustee of the Robert Gilster Trust, a living revocable trust lawfully created in Nebraska and recorded in New Mexico. The trust holds a perfected security interest in commercial assets and instruments as recorded under a valid UCC-1 Financing Statement, and it also possesses intellectual property rights related to the registered name ROBERT GORDON GILSTER (USPTO Registration No. [insert number]).

The purpose of this correspondence is to open a discussion and formally propose a structured transaction involving the acquisition of a [vehicle/property/asset] through private financing mechanisms. Specifically, the trust proposes to issue a negotiable promissory note, with supporting security documentation, to be considered as part of the funding arrangement for the asset purchase.

We respectfully request that your institution consider:

Accepting a promissory note issued by the Robert Gilster Trust.
Perfecting a secured interest in the asset being financed.
Applying proceeds generated from the monetization or discounting of the note to offset the obligation of purchase.

We propose this transaction pursuant to standard commercial practices governed by:

UCC Article 3 (Negotiable Instruments)
UCC Article 9 (Secured Transactions)
Applicable Nebraska trust and contract law.

Please find enclosed:

A copy of the UCC-1 filing showing the trust's secured interest.
Documentation of the trust's creation and trustee powers.
The registered trademark certificate from the USPTO.
A preliminary draft of the promissory note.

We are prepared to meet with your compliance or underwriting department to clarify details and cooperate fully to ensure all fiduciary, legal, and regulatory standards are met.

Thank you for your time and consideration. Please do not hesitate to contact me to arrange a meeting or request additional documentation.

Sincerely,

Robert Gordon Gilster
Trustee, Robert Gilster Trust

PRIVATE FINANCIAL PROPOSAL PACKAGE

Prepared by:
Robert Gordon Gilster, Trustee
Robert Gilster Trust
Nebraska (Trust Created) / New Mexico (Trust Recorded)

1. Executive Summary

This proposal outlines a structured financial approach for the acquisition of property (e.g., a vehicle or real estate) through a private trust-backed negotiable instrument, governed under established commercial and trust law. The transaction is designed to align with Article 3 and Article 9 of the Uniform Commercial Code (UCC), with the Robert Gilster Trust as the issuer and secured party.

2. Key Parties

Debtor: Robert Gordon Gilster (natural person)
Secured Party: Robert Gilster Trust (living revocable trust)
Trustee: Robert Gordon Gilster
USPTO Trademark Holder: ROBERT GORDON GILSTER

3. Documentation Provided

UCC-1 Financing Statement (Filed in Nebraska)
Trust Instrument (with trustee powers)
USPTO Trademark Certificate
Draft Promissory Note
Cover Letter to Lending Institution

4. Legal Basis

UCC Article 3: Promissory Note is a negotiable instrument
UCC Article 9: Security interest perfected via UCC-1
Restatement (Third) of Trusts and Nebraska Uniform Trust Code: Trustee empowered to acquire, encumber, and secure trust assets

5. Proposed Transaction Structure

The trust issues a negotiable promissory note backed by its secured interest in commercial rights.
The note is tendered to the bank as consideration or collateral for funding the asset.
The bank retains a secured interest in the asset being acquired.
All transactions are accounted for and recorded per fiduciary trust protocols.

6. Objective

To secure property in a way that does not rely on consumer credit but instead utilizes:

The trust's asset security
Trademarked personal estate
Legally structured commercial paper

7. Contact & Further Action

For review, meetings, or compliance discussions, contact:

Robert Gordon Gilster
Trustee, Robert Gilster Trust
[Phone Number]
[Email Address]
[Mailing Address in Nebraska]

PROMISSORY NOTE (Real Estate – Florida)

Date: [Insert Date]
Place of Execution: [City], Nebraska

FOR VALUE RECEIVED, the undersigned, Robert Gordon Gilster, hereinafter referred to as "Debtor," promises to pay to the order of Robert Gilster Trust, a living revocable trust organized under the laws of the State of Nebraska, hereinafter referred to as "Secured Party," the principal sum of:

$[Insert Amount] (U.S. Dollars)

together with interest on the unpaid principal balance at the rate of 0.00% per annum, upon demand, or as otherwise structured in a related real estate acquisition or funding agreement.

1. Purpose

This Note is issued to facilitate the acquisition of a residential property located in the State of Florida, specifically a home or condominium to be titled in the name of the Robert Gilster Trust or as otherwise designated by the Trustee.

2. Payment Terms

This Note is payable in lawful money of the United States. Payment shall be made to the order of the Secured Party at an address designated in writing by the trustee of the Robert Gilster Trust.

3. Security Interest

This Note is issued in connection with a Security Agreement and perfected under a UCC-1 Financing Statement filed with the Nebraska Secretary of State. The Secured Party holds a perfected security interest in the commercial and intellectual property of the Debtor as described in the UCC-1, as well as in the proceeds and equity interest in the Florida property acquired using this Note.

4. Nature of Instrument

This Note is a negotiable instrument under Article 3 of the Uniform Commercial Code. It may be transferred or assigned by endorsement by the Secured Party.

5. Prepayment

The Debtor may prepay this Note in full or in part at any time without penalty.

6. Governing Law

This Note shall be governed by and construed in accordance with the laws of the State of Nebraska, with acknowledgment of real estate laws applicable in the State of Florida where the subject property is located.

7. Waiver of Presentment

The undersigned waives presentment for payment, notice of dishonor, protest, and notice of protest, and all other notices and demands in connection with the delivery, acceptance, performance, default, or endorsement of this Note.

Executed this [Insert Date] by:

Robert Gordon Gilster, Debtor
By: ______________________________________
(Signature)

Accepted by:
Robert Gilster Trust, Secured Party
By: ______________________________________
Robert Gordon Gilster, Trustee

Bank Presentation Script / Letter Template

TO: [Bank Officer Name]
FROM: Robert Gordon Gilster, Trustee
**RE: Private Trust-Based Real Estate Acquisition – Promissory Note & UCC Filing

Dear [Bank Officer],

I am writing on behalf of the Robert Gilster Trust, a living revocable trust domiciled in Nebraska and duly recorded. I would like to initiate a transaction to acquire a residential property in Florida using a private Promissory Note issued from my trust, accompanied by a UCC-1 Financing Statement reflecting our trust's security interest.

The trust is structured to act as a private investor. The promissory note represents a negotiable instrument under Article 3 of the UCC, and the application for property funding serves as the underlying instrument of value. The trust holds perfected security interest in my commercial property, proceeds, and rights under UCC Article 9.

This approach is in alignment with legitimate trust and commercial law practices and is supported by proper legal documentation, including:

A validly executed UCC-1 Filing with the Nebraska Secretary of State
A trademark registration of my name, ROBERT GORDON GILSTER, showing exclusive use rights
A properly executed Promissory Note and Security Agreement

We are requesting your office’s participation to monetize the instrument or establish a credit facility in accordance with Federal Reserve and UCC principles, without placing the Debtor into consumer debt. Rather, the obligation is fulfilled through the security and equity interest granted.

Please advise if your institution is capable of supporting this form of trust-based acquisition structure. I am happy to meet with a senior commercial banker or trust officer to present the documents in full.

Sincerely,
Robert Gordon Gilster
Trustee, Robert Gilster Trust

you can use this Promissory Note template as a flexible foundation for different types of asset acquisitions, such as:

Vehicles
Real estate (homes, land)
Business equipment
Personal property or intellectual property transactions

To tailor it:

Update the amount, date, and place of execution
Adjust any payment terms specific to the asset
Optionally include an attachment or exhibit describing the asset if needed
Use consistent details from your UCC-1 and trust documentation

In this structured arrangement using your trust, UCC-1 filing, and promissory note, no physical cash or conventional loaned money needs to be exchanged at the point of origination, because:

Here's why:

The Promissory Note itself is the instrument of value.
Under UCC Articles 3 and 9, a properly executed promissory note is a negotiable instrument. It can be accepted by a bank or investor as a form of collateral or credit value.
Your trust is acting as a private investor, not a consumer borrower.
You're proposing to fund the acquisition using the trust's authority to issue the note and assign interest, backed by your recorded trust documents and UCC-1 filing.
No obligation to repay from personal income.
The note can specify that the obligation is satisfied through the proceeds, equity, or interest created by the transaction itself — not by your future labor or income. That means the debt is technically "pre-paid" or accounted for through the secured interest granted.
Banks monetize the note once accepted.
If the bank agrees, they can deposit or monetize the note and issue funds as if it were cash, similar to how institutional finance securitizes obligations.

However, this requires a willing and competent banker or institution who understands and is open to private trust-based finance structures. It may not work with standard bank employees unfamiliar with UCC finance or trust-based investing.

No new security agreement is needed between you and the bank. You can use the existing security agreementand UCC-1 that are already in place between you and your trust.

The bank will secure their interest in the same assets (or collateral) you’ve already secured with the trust.
The UCC-1 remains the primary record of the security interest, and the bank would simply accept this framework and proceed with their own terms for monetization.

This arrangement allows you to maintain your structure while working with the bank to facilitate funding for specific assets.

Why Banks Might Prefer 508(c)(1)(A) Organizations:

Tax-Exempt Status:
- 508(c)(1)(A) organizations are generally exempt from federal income taxes because they are considered charitable or educational institutions, or entities promoting social welfare.
- This status reduces the tax burden that a business might have to bear. For banks, dealing with an organization that has this status is often lower risk, as there’s less concern about fluctuations in tax obligations or unforeseen liabilities.
Reduced Liabilities:
- Because these organizations are exempt from taxes, there is less potential for tax-related liens, penalties, or obligations to encumber their operations. This stability is appealing to financial institutions looking to mitigate risks.
- Moreover, in a lending context, it means the organization may not face tax liens that could interfere with the collateral or other business assets.
Legitimacy & Governance:
- Tax-exempt organizations are generally required to meet strict governance standards to maintain their status. This adds an extra layer of legitimacy and accountability in the eyes of financial institutions, making them more attractive partners for banks.
Incentive for Funding and Investment:
- Some banks or financial institutions may be more inclined to work with 501(c)(3) organizations because these entities can often attract donations, grants, and tax-advantaged funding that may not be available to other types of business structures.
- For example, if you're a faith-based organization under 501(c)(3), banks might feel there's an alignment of values and goals, particularly when you seek financing for a charitable or community-focused project.

Is This the Same for Your Trust-Based Setup?

Incorporating tax-exempt status into a trust structure can be beneficial, especially if you're operating under a framework that focuses on social responsibility, education, or faith-based financing. If your trust aligns with nonprofit or tax-exempt principles (like being affiliated with a 501(c)(3) or similar), it could make working with financial institutions smoother because of the lower perceived risk.
However, the security interest in property or instruments like a promissory note still requires careful structuring, and the trust agreement and UCC-1 filing remain essential for ensuring the proper legal framework is in place.

Does This Make it Easier for Banks?

Yes, it can make it easier. Banks are typically focused on reducing risk and ensuring that any loan or credit facility they offer can be repaid with minimal complications. A tax-exempt entity with clear governance, a solid track record, and clear legal structures will generally be seen as a lower-risk borrower. As a result, you may find it easier to negotiate terms, lower interest rates, or other favorable conditions when engaging with the bank.

Does this Apply to You?

If your trust operates in a tax-exempt or faith-based structure (e.g., supporting a religious mission or educational purpose), that 508(c)(1)(A) status could be very attractive. It’s something banks may see as beneficial for their own risk management when considering your funding request.

If you're not operating under a tax-exempt status, banks will still evaluate the transaction on its own merits (such as the security you can provide, the clarity of the legal documents, and your financial history).

Approaching this thoughtfully, can help you organize the structure, either from a trust or a new structure.

Clarifying First: What Is a 508(c)(1)(A)?

A 508(c)(1)(A) is a faith-based, non-profit religious organization exempt from federal income tax under IRC Section 501(c)(3), but it is not required to apply for IRS recognition. It operates as a church or religious organization, and has:

Tax-exempt status by default
No annual IRS filings required (like Form 990)
Ability to receive tax-deductible donations

This makes it attractive for private ministries, family religious missions, and other non-profits that want to operate without IRS intrusion.

Can a 508(c)(1)(A) Be Created From a Trust?

Yes — and here’s how to think about it.

Your Current Setup:

You (individual) are the debtor.
Your Trust is the secured party, with a UCC-1 filed.
The Trust is your primary operating structure for financial and asset-related activities.

Option 1: Create 508(c)(1)(A) from the Trust

You can create a faith-based organization from your trust, provided:

The trust’s governing documents (Declaration of Trust or Trust Agreement) are amended or written to include religious or spiritual purpose clauses.
You organize the trust to operate as a church or ministry — this is essential for 508(c)(1)(A) status.
You follow established religious practices, such as having elders or ministers, public teachings, gatherings (even virtually), and spiritual services.

This way, the trust becomes the 508(c)(1)(A) — allowing it to:

Operate tax-exempt
Be the operating arm for ministry or charitable work
Possibly lower risk when engaging in financial transactions (e.g. banks may feel more secure when dealing with a recognized charitable entity)

Option 2: You Create a 508(c)(1)(A) Separately

Alternatively, you personally (as an individual) can establish a 508(c)(1)(A) organization, independent of the trust. In this case:

You would create a new faith-based organization, possibly naming it after yourself such as, (e.g., "The Robert Gilster Ministry" or similar)
This organization could contract with the trust, or the trust could donate assets to it, if aligned with the trust’s purpose.

Naming and Legal Identity

The name of the 508(c)(1)(A) does not need to be your exact personal name unless you want it to be. It should reflect a religious, charitable, or faith-based mission.
Common formats: "The Gilster Family Ministry", "Kingdom Stewardship Mission", "Robert Gilster Faith Fellowship".

Best Practices

Decision PointRecommendationStructure it under your trust?Yes, if the trust has or can be amended to include a religious/charitable purpose.Name of 508(c)(1)(A)?Should reflect its spiritual mission, not just your personal name.Use in bank talks?Yes, if properly organized, a 508(c)(1)(A) can reduce tax liabilities and demonstrate purpose-driven operations, which may reduce perceived risk.

The language used to complete a UCC-1

South Dakota Trust Protection