Legal Vehicle Possession Letter

LEGAL VEHICLE POSSESSION LETTER

This Legal Vehicle Possession Letter is made and entered into on this day of , by and between Owner Name: (hereinafter "Owner"), Owner Address: , and Possessor Name: (hereinafter "Possessor"), Possessor Address: .

RECITALS

WHEREAS, Owner is the lawful title holder of the motor vehicle described below and has the exclusive right to convey possession of that vehicle; and

WHEREAS, Possessor seeks and Owner is willing to deliver possession of the vehicle to Possessor for the limited purposes and subject to the conditions set forth in this Letter; and

WHEREAS, the parties intend by this Letter to set forth the terms, conditions and liabilities associated with the possession and use of the Vehicle.

NOW, THEREFORE

In consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. VEHICLE DESCRIPTION

2. GRANT OF POSSESSION

Owner hereby grants to Possessor exclusive possession of the Vehicle described above solely for the purpose of (the "Purpose"), subject to the terms and limitations of this Letter. This grant of possession does not transfer legal title or any security interest held by Owner or any third party.

3. TERM OF POSSESSION

The possession authorized by this Letter commences on the day of , and shall end on the day of , , unless earlier terminated in accordance with this Letter.

4. TITLE, LIENS AND AUTHORITY

Possessor acknowledges that Owner retains legal title to the Vehicle and that any existing lien, security interest or encumbrance on the Vehicle remains the sole responsibility of Owner unless expressly assumed in writing. Possessor shall not represent to any third party that it has any ownership interest in the Vehicle.

5. INSURANCE AND RISK OF LOSS

Possessor shall, at its expense, maintain insurance covering liability, collision and comprehensive risks with limits not less than those required by applicable law and sufficient to protect Owner and Possessor from claims arising from Possessor's possession and use of the Vehicle. Possessor shall provide proof of such insurance to Owner upon request and shall name Owner as an additional insured or loss-payee where reasonably requested by Owner.

Insurance provided: Possessor will maintain insurance

6. INDEMNIFICATION

Possessor shall defend, indemnify and hold harmless Owner, its officers, agents and employees, from and against any and all claims, demands, liabilities, losses, damages, fines, penalties, costs and expenses (including reasonable attorneys' fees) arising out of or related to Possessor's possession, use, operation, storage, maintenance, repair, or transportation of the Vehicle, except to the extent caused by Owner's gross negligence or willful misconduct.

7. MAINTENANCE, REPAIR AND USE

Possessor shall operate and maintain the Vehicle in a safe and lawful manner and shall perform routine maintenance at its own expense. Possessor shall not permit any use of the Vehicle that would void insurance coverage or result in illegal use. Any major repairs exceeding must be authorized in writing by Owner prior to commencement.

8. INSPECTION AND ACCESS

Owner or Owner's authorized representative may inspect the Vehicle upon reasonable notice to Possessor and at reasonable times, and may require immediate return of the Vehicle in the event of a material breach of this Letter or for protection of Owner's interests.

9. LOSS, DAMAGE AND REPORTING

Possessor shall immediately notify Owner of any accident, theft, loss, damage, or other event affecting the Vehicle. Possessor shall cooperate with Owner and insurers in the investigation of any loss or claim. All deductibles and uninsured losses shall be the responsibility of Possessor except as otherwise agreed in writing.

10. RETURN OF VEHICLE

Upon expiration or earlier termination of this Letter, Possessor shall promptly return the Vehicle to Owner at Owner's designated location, in substantially the same condition as delivered, ordinary wear and tear excepted. Possessor shall be liable for the cost of repair for any damage beyond ordinary wear and tear.

11. NOTICES

All notices required or permitted under this Letter shall be in writing and delivered by hand, by certified mail, return receipt requested, or by overnight courier to the addresses set forth below or to such other address as a party may designate in writing.

12. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full authority to enter into this Letter and that the person signing below is duly authorized to execute this Letter on its behalf. Owner further represents that, to Owner's knowledge, the Vehicle is not subject to any undisclosed liens other than those disclosed in writing to Possessor prior to the Effective Date.

13. GOVERNING LAW

This Letter shall be governed by and construed in accordance with the laws of the State designated below, without regard to principles of conflicts of law.

14. ENTIRE AGREEMENT; SEVERABILITY

This Letter constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral. If any provision of this Letter is held to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be severed, and the remaining provisions shall continue in full force and effect.

15. AMENDMENTS; WAIVER; COUNTERPARTS

No amendment, modification or waiver of any provision of this Letter shall be effective unless made in writing and signed by both parties. No waiver by either party of any breach or default shall constitute a waiver of any subsequent breach or default. This Letter may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

16. VEHICLE CONDITION REPORT

ADDITIONAL PROVISIONS

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