Contract for the Sale of Motor Vehicle Owner Financed with Provisions for Note and Security Agreement

Transcription

1 Contract for the Sale of Motor Vehicle Owner Financed with Provisions for Note and Security Agreement Agreement made on the (date), between (Name of Buyer) of (street address, city, county, state, zip code), referred to herein as Buyer, and (Name of Seller), of (street address, city, county, state, zip code), referred to herein as Seller. 1. Sale of Motor Vehicle Seller shall sell, transfer, and deliver to Buyer on or before (date of sale), the following described Motor Vehicle (hereinafter called Vehicle) New or used: (state whether new or used); Year and model: (year of Vehicle) and (model of Vehicle); Number of cylinders: (number); Make or trade name: (make); Body type: (body type); Model number or series: (number); Manufacturer's Serial Number: (number); Motor Number: (number). 2. Consideration Buyer shall pay $ (dollar amount) to be applied on the purchase price, and agrees to pay the balance of the purchase price as follows: $ (dollar amount), to be evidenced by a Promissory Note of Buyer, providing for full prepayment privileges without penalty. Said Note shall be in the form attached hereto as Exhibit B. The balance of said purchase price shall be secured by the security agreement set forth in Paragraph 4 below. 3. Payment on Receipt Buyer shall pay $ (dollar amount) at the time when, and at the place where, the Vehicle is received by Buyer. 4. Security Agreement A. Buyer grants to Seller a security interest in the Vehicle and any and all additions and accessions (the Collateral) to secure the payment of Promissory Note and any and all other liabilities, direct or indirect, absolute or contingent, now existing or arising later to Seller (collectively, the Obligations). B. Except for the security interest granted by this Agreement, Buyer shall be the owner of Collateral free from any adverse lien, security interest, or encumbrance. Buyer shall defend Collateral against all claims and demands of any or all persons claiming Collateral or any interest in the Collateral.

2 C. Buyer shall not sell or offer to sell or otherwise transfer Collateral or any interest in the Collateral without the written consent of Seller. D. Protection and Use of Vehicle Buyer shall keep Vehicle free of all taxes, liens and encumbrances, and any sum that may be paid by Seller in release or discharge of the same shall be paid by Buyer on demand of Seller as an additional part of the obligation secured under this Agreement. Buyer shall not use Vehicle illegally, improperly or for hire. Buyer shall not, without Seller's express permission, permanently remove Vehicle from the state or transfer or otherwise dispose of any interest in this Agreement or in Vehicle. E. Until default Buyer may have possession of Collateral and use it in any lawful manner not inconsistent with this Agreement and not inconsistent with any policy of insurance with respect to Collateral. F. Buyer shall keep Collateral free from any adverse lien, security interest, or encumbrance and in good order and repair, and shall not waste or destroy Collateral or any part of the same. Buyer shall not use Collateral in violation of any statute or ordinance. Seller may examine and inspect Collateral at any reasonable time, wherever located. G. Buyer shall have and maintain insurance against risk of fire at all times with respect to all of Collateral, including so-called extended coverage, of theft, and of such other casualties as Seller may require. The policies of insurance shall contain such terms and be in such form, for such periods, and written by such companies as may be satisfactory to Seller. Such insurance shall be payable to Seller and Buyer as their interests may appear. All policies of insurance shall provide for (number) days' written minimum cancellation notice to Seller. H. Buyer shall furnish Seller with certificates or other evidence satisfactory to Seller of compliance with the requirements set forth in this section. I. Seller may act as attorney-in-fact for Buyer in obtaining, adjusting, settling, and canceling such insurance and endorsing any related drafts. J. Buyer shall pay promptly when due all taxes and assessments on Collateral or levied on its use or operation, and taxes and assessments on this agreement, or on the note attached to this agreement or any other note or notes evidencing Obligations. K. At his option, Seller may discharge taxes, liens, security interests, or other encumbrances at any time levied or placed on Collateral, may pay for insurance on Collateral, and may pay for the maintenance and preservation of Collateral. Buyer shall reimburse Seller on demand for any payment made or any expense

3 incurred by Seller pursuant to the foregoing authorization. L. Default The occurrence of any of the following shall, at Seller's option and without notice or demand on Buyer, constitute an event of default under this Agreement: 1. Failure punctually to make any payment due under this Agreement; 2. Failure to comply with any of the terms or conditions of this Agreement; 3. Institution of a proceeding in bankruptcy, receivership, or insolvency against Buyer or Buyer's property. 4. Seller deems Vehicle in danger of misuse or confiscation. 5. Buyer fails for any reason to comply with Subparagraph G above, or the required motor vehicle insurance, whether procured by Seller or by Buyer, is canceled by the insurer prior to expiration of the insurance. M. Remedies On default under this Agreement, Seller shall have the right, his election, to declare the unpaid balance, together with any other amount for which Buyer shall be obligated under this Agreement, to be immediately due and payable. Further, in such event, Seller may take immediate possession of Vehicle without demand, including any equipment or accessories, and for this purpose Seller may enter on the premises where Vehicle may be and remove Vehicle. Seller may take possession of any other property in Vehicle at the time of repossession, wherever such other property may be in Vehicle, and hold such property temporarily for Buyer without liability. Such repossession shall not affect Seller's right, now confirmed, to retain all payments previously made by Buyer. In the event of repossession of Vehicle, Seller shall have all the rights and remedies of a secured party under Article 9 of the Uniform Commercial Code of the State of (Name of State) and as are otherwise provided and permitted by law. 5. Receipt Construed as Delivery The Vehicle shall be deemed received by Buyer when delivered to Buyer at (address of Buyer). 6. Risk of Loss The risk of loss from any casualty to the Vehicle, regardless of the cause, shall be on Seller until the Vehicle has been accepted by Buyer.

4 7. Warranty of No Encumbrances Seller warrants that the Vehicle are now free, and that at the time of delivery shall be free from any security interest or other lien or encumbrance. 8. Warranty of Title Seller warrants that at the time of signing this Agreement Seller neither knows, nor has reason to know, of the existence of any outstanding title or claim of title hostile to the rights of Seller in the Vehicle. 9. Right of Inspection Buyer shall have the right to inspect the Vehicle on arrival and, within (number) business days after delivery, Buyer must give notice to Seller of any claim for damages on account of condition, quality or grade of the Vehicle, and Buyer must specify the basis of the claim of Buyer in detail. The failure of Buyer to comply with these conditions shall constitute irrevocable acceptance of the Vehicle by Buyer. 10. Severability The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 11. No Waiver The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. 12. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of (Name of State). 13. Notices Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. 14. Mandatory Arbitration Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

5 15. Entire Agreement This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 16. Modification of Agreement Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 17. Assignment of Rights The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. 18. In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. (Printed Name of Seller) (Printed Name of Buyer) (Signature of Seller) (Signature of Buyer) (Acknowledgment form may vary by state) State of County of Personally appeared before me, the undersigned authority in and for the said County and State, on this (date), within my jurisdiction, the withinnamed (Name of Seller), who acknowledged that he executed the above and foregoing instrument. My Commission Expires: NOTARY PUBLIC

6 State of County of Personally appeared before me, the undersigned authority in and for the said County and State, on this (date), within my jurisdiction, the withinnamed (Name of Buyer), who acknowledged that he executed the above and foregoing instrument. My Commission Expires: NOTARY PUBLIC