Fill and Sign the Contract for the Sale of Personal Property Owner Financed with Provisions for Note and Security Agreement Form

Contract for the Sale of Personal Property – 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 Goods Seller shall sell, transfer, and deliver to Buyer on or before __________________ (date of sale) , the following personal property, hereinafter called Goods: (description of goods) ____________________________________________________________________________ ____________________________________________________________________________. 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 5 below with the appropriate Uniform Commercial Code financing statements. 3. Identification of Goods Identification of the Goods to this Agreement shall not be deemed to have been made until both Buyer and Seller have specified that the Goods in question are marked to be included within this Agreement. 4. Payment on Receipt Buyer shall pay $_____________ (dollar amount) at the time when, and at the place where, the Goods are received by Buyer . 5. Security Agreement A. Buyer grants to Seller a security interest in the Goods 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. C. At the request of Seller , Buyer shall join with Seller in executing one or more financing statements pursuant to Article 9 of the Uniform Commercial Code of the state of ______________ in a form satisfactory to Seller . Buyer shall pay the cost of filing such financing statement or statements, or filing or recording this agreement, in all public offices where filing or recording is deemed by Seller to be necessary or desirable. D. Buyer shall not sell or offer to sell or otherwise transfer Collateral or any interest in the Collateral without the written consent of Seller . E. Collateral shall be used primarily for (business, personal, family, or household) _________________ purposes. F. 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 . G. 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. H. 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 . I. Buyer shall furnish Seller with certificates or other evidence satisfactory to Seller of compliance with the requirements set forth in this section. J. Seller may act as attorney for Buyer in obtaining, adjusting, settling, and canceling such insurance and endorsing any related drafts. K. 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 . L. 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 incurred by Seller pursuant to the foregoing authorization. M. Buyer shall be in default under this agreement on the happening of any of the following events or conditions: 1. Default in the payment or performance of any obligation, covenant, or liability contained or referred to in this Agreement or in the Note attached to this Agreement or any other note evidencing any such obligation, covenant, or liability. 2. Falsity in any material respect when made or furnished to Seller by or on behalf of Buyer concerning any warranty, representation, or statement. 3. Any loss, theft, confiscation, destruction, substantial damage, or danger of misuse of Collateral ; any sale or encumbrance to or of any of Collateral ; any levy on, or seizure or attachment of Collateral . 4. Death, dissolution, termination of existence, insolvency, business failure, appointment of a receiver of any part of the property of, assignment for the benefit of creditors by, or commencement of any proceeding under any bankruptcy or insolvency laws by or against Buyer or any guarantor or surety for Buyer . N. On default under this Agreement and at any time after such default, Seller may declare all Obligations immediately due and payable and shall have the remedies of a Seller under Article 9 of the Uniform Commercial Code of the state of _____________. Seller may require Buyer to assemble Collateral and make it available to Seller at a place to be designated by Seller that is reasonably convenient to both parties. Unless Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, Seller shall give Buyer reasonable notice of the time and place of any public sale of Collateral or of the time after which any private sale or any other intended disposition of Collateral is to be made. The requirements of reasonable notice shall be met if such notice is mailed, postage prepaid, to the address of Buyer shown in this agreement at least _______ (number) days before the time of the sale or disposition. Expenses of retaking, holding, preparing for sale, selling, or the like shall include reasonable attorney's fees and legal expenses incurred by Seller . 6. Receipt Construed as Delivery Goods shall be deemed received by Buyer when delivered to Buyer at ______________ __________________________________________________________ (address of Buyer) . 7. Risk of Loss The risk of loss from any casualty to the Goods , regardless of the cause, shall be on Seller until the Goods have been accepted by Buyer . 8. Warranty of No Encumbrances Seller warrants that the Goods are now free, and that at the time of delivery shall be free from any security interest or other lien or encumbrance. 9. Warranty of Title Furthermore, 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 Goods . 10. Right of Inspection Buyer shall have the right to inspect the Goods 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 Goods , 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 Goods by Buyer . 11. 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. 12. 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. 13. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of _______________. 14. 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. 15. 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. 16. 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. 17. 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. 18. 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. 19. 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. ________________________ _________________________ (P rinted name) (P rinted name) ________________________ _________________________ (Signature of Seller) (Signature of Buyer)