Establishing secure connection…Loading editor…Preparing document…

Equipment Purchase and Security Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

INSTALLMENT PURCHASE AND SECURITY AGREEMENT WITHOUT WARRANTIES

1. PARTIES:

Seller:

Address:

City, State, Zip:

Home Phone:

Business Phone:

County:

Buyer:

Address:

City, State, Zip:

Home Phone:

Business Phone:

County:

2. HORSE(S) PURCHASED: The Seller hereby agrees to sell and the Buyer hereby agrees to buy, upon the terms and conditions set forth, the following described horse(s), hereinafter referred to as "the horse(s)."

Name / Sire X Dam / Foaled / Sex / Registration #

With foal at side by:

In foal to:

3. PURCHASE PRICE: The total purchase price shall be

, payable according to the following terms:

Buyer shall maintain the purchased horse(s) in

in the State of

.

Registration papers shall be delivered to Buyer only upon full payment of all principal and interest due.

4. WARRANTY OF PEDIGREE AND REGISTRATION: Seller warrants the description stated above.

5. AS IS PURCHASE: Buyer accepts the horse(s) AS IS-WHERE IS and subject to any and all faults or defects that may now exist or subsequently appear. The express warranty of description above is exclusive of all others. ALL IMPLIED WARRANTIES OF FITNESS, MERCHANTABILITY AND OTHERWISE ARE EXCLUDED.

6. All parties signing as Buyer are jointly and severally liable for all obligations of this contract, as principals, not as guarantors.

7. PREPAYMENT PRIVILEGE: Buyer may prepay any portion of the unpaid principal balance at any time. Prepayments shall apply to the last principal installments falling due.

8. ACCEPTANCE, NOTICE OF CLAIMS AND LIMITATION OF REMEDIES: Buyer accepts the horse(s) by signing this contract, and risk of loss passes immediately. Buyer is responsible for all board, veterinary and transportation expenses after the date hereof. Buyer shall make no claim for any breach of this contract, for recission or revocation, nor for any warranty, misrepresentation, mistake or other tort, unless Buyer first notifies Seller in writing of the basis and nature of the claim within thirty (30) days of the date of this contract. Buyer's remedies in contract, tort or otherwise are limited to refund of all amounts paid, upon return of the horse(s) to Seller. ALL INCIDENTAL AND CONSEQUENTIAL DAMAGES ARE EXCLUDED to the full extent permitted by law.

9. BUYER'S WARRANTIES: Buyer shall provide adequate feed, shelter, worming, vaccinations, veterinary care and farrier care. Buyer shall keep the horse(s) free of all liens and encumbrances and pay all taxes levied with respect to the horse(s) when due. Buyer shall be responsible for all sales, transaction privilege and other taxes that may imposed as a result of this transaction. Buyer warrants that this purchase is for business or commercial purposes rather than for personal use. Buyer shall not remove the horse(s) from the County identified in Paragraph 1 above for longer than three (3) months unless Seller is given advance written notice of the new location.

10. INSURANCE AND INDEMNIFICATION: Buyer shall promptly obtain and maintain "full mortality" livestock insurance in an amount not less than any unpaid balance on this contract, naming Seller as additional loss payee to the extent of Seller's interest. Buyer shall provide Seller proof of such insurance, from a company acceptable to Seller, upon execution of this contract and upon each renewal. Buyer shall indemnify Seller against any claims arising out of this contract or related in any way to the horse(s), including the expenses of defending any such claim.

11. SECURITY INTEREST: To secure performance of all obligations of this contract, Buyer grants Seller a security interest in the horse(s) and all its offspring, produce and proceeds, including all foals born or in utero on or after the date hereof. Buyer shall execute such documents and perform such acts as may be required for Seller to perfect the security interest and insure its validity and enforceability, including but not limited to execution of UCC-1 Financing Statement. Seller is also authorized to file or record a photocopy of this contract as a financing statement.

12. BUYER'S DEFAULT AND CURE: Should Buyer default in the timely payment of any principal or interest, or fail to fulfill any other obligation of this contract, the entire unpaid balance shall, upon written notice to Buyer of late payment or other default, automatically become due and payable together with interest on all amounts due at the rate of eighteen percent (18%) per annum, or the highest legal rate, whichever is less, from the date of such default until paid. Buyer may cure the default and reinstate the installment payment schedule within thirty (30) days of the mailing of the first notice of late payment or other default. Time is of the essence.

13. SELLER'S REMEDIES ON DEFAULT: Upon any default by Buyer that is not timely cured following proper notice, Seller shall have all rights and remedies provided by law, cumulatively, successively or concurrently, including but not limited to the following. Seller may take possession of the horse(s) without further notice to Buyer and without legal process, to the extent permitted by law. Seller may require Buyer, and Buyer hereby agrees, to make the horse(s) available to Seller at the location of this sale or other place convenient to both parties. To protect the collateral, Seller may pay any taxes or liens levied on the horse(s) and may provide insurance, feed, shelter, conditioning, worming, vaccinations, veterinary care or farrier care on Buyer's behalf and add such costs and expenses to the principal amount due under this contract. Seller may resell by public or private sale; if by private sale, Seller's customary methods of attracting potential buyers without public advertising shall be deemed reasonable. Ten (10) days' notice shall be deemed reasonable notice of resale. No delay or omission by Seller in exercising any right or remedy shall operate as a waiver of that or any other right or remedy, and no waiver of any Buyer's breach of Seller's right or remedy shall be deemed a waiver of any other or future breach, right or remedy.

14. NON-ASSIGNABILITY AND DUE ON SALE: Buyer's interest in the horse(s), foal(s), breeding right(s) and other rights and obligations under this contract may not be assigned or sold without Seller's prior written consent, which shall not be unreasonably withheld. All amounts due hereunder shall become immediately due and payable without notice if Buyer should sell or assign Buyer's interest in the horse(s), foal(s), breeding right(s), or obligations under this contract, or purport to do so, without Seller's prior written consent.

15. NOTICES: All notices, requests and consents required or permitted by this contract or for any other purpose shall be in writing, signed and personally delivered or mailed by registered or certified U.S. Mail to the appropriate address specified in paragraph 1 above, or such other address of which the sender has been given written notice.

16. APPLICABLE LAW, JURISDICTION AND ATTORNEY'S FEES: This contract shall be construed and governed by the laws of the state identified above the signature lines. At the option of Seller, jurisdiction and venue for any dispute arising under or in relation to this contract shall be only in the county and state identified above the signature lines. In the event lawsuit is brought with respect to this contract or Seller engages an attorney to repossess the horse(s), or collect amounts due, the prevailing party shall be entitled to reasonable attorneys' fees.

17. ENTIRE AGREEMENT AND SEVERABILITY: This contract contains the entire understanding of the parties concerning its subject matter; there are no oral or written promises or representations upon which Buyer is relying except as expressly set forth herein. This contract may be modified only in writing executed by both Buyer and Seller. Headings are for convenience only and are not part of this contract. The invalidity or unenforceability of any term or clause of this contract shall not affect the validity and enforceability of any other terms or clauses, but otherwise this contract is indivisible notwithstanding allocation of prices the parties may agree upon for tax, insurance or other reasons.

Dated

, at

, Alabama.

SELLER

By:

By:

BUYER has read and accepts all terms appearing on all pages of this contract

By:

By:

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What the Equipment Purchase and Security Agreement Is

An Equipment Purchase and Security Agreement is a hybrid contract that documents the sale or lease-purchase of equipment and creates a security interest in that equipment to secure the buyer’s payment obligations. It identifies parties, describes the collateral, states purchase price or lease terms, sets payment and default remedies, and authorizes the creditor to perfect its interest (often by filing a UCC-1 financing statement). The agreement governs risk allocation, warranties, maintenance obligations, and disposition of the equipment on default or at end of term, and it is commonly used in commercial lending, leasing, and vendor-finance arrangements.

Why this Agreement Matters for Buyers and Lenders

The document secures lender or seller rights while creating transparent terms for equipment delivery, payments, and remedies. Proper drafting and perfection (UCC-1 filing) reduce priority disputes, improve recoverability on default, and clarify tax and insurance responsibilities for both parties.

Why this Agreement Matters for Buyers and Lenders

Typical Parties and Use Cases

Use the agreement when documenting the transaction, specifying collateral, and when the secured party intends to perfect by filing a UCC-1 or taking possession where permitted.

  • Equipment sellers and vendors offering vendor-finance terms to corporate customers.
  • Banks, finance companies, and captive lenders taking a security interest in equipment.
  • Corporate buyers acquiring machinery, vehicles, or IT hardware under secured payment terms.

Step-by-Step: Completing the Agreement

Follow this sequence to reduce errors and ensure the security interest can be enforced.

  • 01
    Prepare Parties: Confirm legal names, addresses, and contact details for all signatories.
  • 02
    Detail Collateral: List equipment identifiers, condition, location, and any encumbrances.
  • 03
    Set Payment Terms: Enter amounts, due dates, interest rates, and default remedies.
  • 04
    Perfect Interest: File UCC-1 in the debtor’s jurisdiction and obtain signed originals or electronic equivalents.

How to Configure an Online Signing Workflow

Set up a clear signer order and authentication to ensure enforceability and a complete audit trail.

Field Configuration
Signer Order Sequence lenders before borrower signatures for proper acceptance flow.
Authentication Email + SMS code or knowledge-based answers for increased signer assurance.
Conditional Fields Show insurance or tax fields only if collateral type requires them.
Completion Evidence Enable audit trail, timestamping, and signed PDF export for records.

Typical Electronic Signing Flow

A standard online signing sequence ensures legal validity, attribution, and a retained record under ESIGN/UETA.

  • Upload Document: Sender uploads final executed draft to the eSignature platform.
  • Place Fields: Add signature, date, and initial fields plus any conditional inputs.
  • Invite Signers: Send secure signing links or email invites in the agreed order.
  • Audit & Store: Platform records IP, timestamps, and stores the signed copy with certificate.

Essential Clauses in a Professional Agreement

Include these clauses to allocate risk, enable enforcement, and ensure clarity for both parties.

Grant of Security

A clear grant clause that creates the security interest in described collateral and specifies scope of proceeds.

Perfection Covenant

Obligation for secured party or debtor to file UCC-1 financing statement and maintain perfection.

Payment Terms

Detailed schedule, late charges, interest rate, and remedies following default.

Repossession Rights

Remedies on default, including self-help repossession where permitted and sale procedures.

Warranties and Condition

Seller warranties on title and condition; disclaimers and limitations of liability where appropriate.

Insurance and Taxes

Who bears insurance, casualty loss, tax obligations, and evidence of coverage requirements.

Key Data Points to Include

Debtor Name: Exact legal name
Secured Party: Lender or seller legal name
Collateral IDs: Serial/VIN numbers
Payment Terms: Schedule and amounts
Effective Date: MM/DD/YYYY
UCC Filing: Filing jurisdiction

Common Pitfalls to Avoid

  • Using trade names instead of the debtor’s registered legal name.
  • Vague collateral descriptions that fail to identify serial numbers.
  • Delaying UCC-1 filing until after delivery of equipment.
  • Failing to record insurance obligations or proof of coverage.

Consequences of Errors or Omissions

Unperfected Lien: Priority loss
Rejection of Filing: Administrative delay
Repossession Barriers: Enforcement difficulty
Tax Exposure: Unclear deduction status
Insurance Gaps: Uncompensated loss
Dispute Litigation: Higher legal costs

Timing and Critical Deadlines

Observe statutory and commercial deadlines to preserve rights and avoid penalties.

UCC-1 Filing:

File promptly in debtor’s jurisdiction to secure priority.

Insurance Proof:

Provide certificate before equipment delivery when required.

Payment Due Dates:

Follow schedule to avoid default and late fees.

Tax Reporting:

Capitalization and depreciation reporting per IRS rules.

Contract Renewals:

Notice periods for renewals or buyout options.

Key Milestones from Signing to Perfection

A sequential view of the most important steps from execution through enforcement.

01

Execution

All parties sign and date the agreement; signatures captured and stored.

02

Initial Delivery

Equipment delivered and condition accepted per schedule.

03

Perfection Filing

UCC-1 financing statement filed in the debtor’s state.

04

Insurance Verification

Secure and file proof of insurance listing secured party as loss payee.

How Organizations Use This Agreement in Practice

Real-world uses show how clarity and timely perfection affect outcomes for sellers and lenders.

Tech Data — Vendor Financing

Tech Data used online execution to streamline vendor-finance agreements and reduce turnaround.

  • The process improved internal and external customer service.
  • By combining clear security language with rapid filing, Tech Data shortened time-to-funding while preserving secured-priority and customer satisfaction.

Martin Properties — Equipment Leasing

A property management firm executed multiple equipment purchase-security agreements remotely.

  • They relied on consistent collateral descriptions and electronic signatures.
  • Tim Martin noted the firm could process and execute documents online with compliance and built-in security, reducing onsite handling and accelerating project start dates.

Digital Signing and Technical Requirements

Integrations with systems like CRM or ERP and secure storage (AES-256 at rest, TLS 1.2/1.3 in transit) simplify workflow and long-term recordkeeping.

  • File Formats: Support for PDF and DOCX is essential.
  • Authentication: Email plus optional SMS or knowledge-based options.
  • Audit Trails: Timestamp, IP, and action log required.

eSignature Pricing and Feature Snapshot for Equipment Agreements

Platform pricing and core features affect per-deal cost and volume handling; signNow is listed first in the comparison per vendor ordering rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions

Answers to common execution, perfection, and enforcement questions for Equipment Purchase and Security Agreements.


Need help? Contact support

Explore Templates

Witness List Lease Agreement Ohio Dissolution of Marriage Ohio Waiver of Legal Representation in Dissolution of Marriage Ohio Parenting Proceeding Affidavit Notice of Abandoned Personal Property
be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.