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Retail Installment Contract and Security Agreement

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INSTALLMENT PURCHASE AND SECURITY AGREEMENT
WITHOUT WARRANTIES

1. PARTIES:

Seller:

Name Home Phone
Address Business Phone
City, State, Zip County

Buyer:

Name Home Phone
Address Business Phone
City, State, Zip 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 (city) 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 20 at (city), Kansas.

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

©2017 - Cottonwood Equestrian Publications

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What the Retail Installment Contract and Security Agreement Is

A Retail Installment Contract and Security Agreement is a combined consumer credit contract and security instrument used when goods are sold on installment terms and the seller or lender retains a security interest in the purchased property. The contract sets purchase price, finance charges, payment schedule, late fees and default remedies, while the security agreement grants the lender a collateral interest and explains repossession rights. Together these documents govern repayment, identify the parties and collateral, and create the basis for filing a financing statement to perfect the creditor’s security interest.

Why this Combined Document Matters for Sellers and Borrowers

Using a single Retail Installment Contract and Security Agreement clarifies payment obligations, creates an enforceable security interest, and documents consumer disclosures required by federal and state law. It reduces disputes about terms and supports the creditor’s ability to repossess and resell collateral if the buyer defaults.

Why this Combined Document Matters for Sellers and Borrowers

Who typically completes and signs this agreement

Each signer should confirm identity, review finance and disclosure sections, and keep a copy; lenders should follow state UCC filing procedures to perfect security interests.

  • Retail dealers and sellers who extend credit and need a security interest recorded.
  • Specialty finance companies and banks that underwrite installment loans to consumers.
  • Consumers or borrowers entering a financed purchase and agreeing to collateral terms.

Primary signers and their roles

Retail Lender

A lending officer or dealer finance manager completes terms, calculates APR and payment schedule, prepares disclosure language, and takes steps to perfect the lien. The lender is responsible for accurate financing figures and timely filing of any UCC-1 financing statements.

Borrower

The consumer signs to accept loan terms, acknowledges receipt of required disclosures, and provides identity and collateral details. Borrower accuracy is critical for credit reporting, tax records, and avoiding backup withholding or other administrative problems.

Essential information required on the form

Borrower Name: Full legal name
Tax ID: SSN or TIN
Collateral Description: Make, model, VIN
Cash Price: Sale price
Payment Schedule: Number, amount, due dates
Late Fees: Amount and trigger

Core contract elements lenders and buyers should expect

A professionally prepared Retail Installment Contract and Security Agreement contains discrete sections covering finance terms, collateral, remedies, and administrative mechanics so parties can rely on a clear roadmap if payments lapse.

Payment Terms

Detailed schedule showing number of payments, installment amounts, due dates, APR or finance charge disclosure, and any prepayment penalties or discounts to ensure compliance with consumer finance requirements.

Security Interest

Language granting the creditor a security interest in specified collateral, including sufficient collateral description to support a UCC-1 financing statement and future enforcement rights.

Repossession Rights

Clear statement of lender remedies on default, including repossession procedures, sale of collateral, and borrower notification to minimize disputes and ensure commercially reasonable disposition.

Default Provisions

Events of default, cure periods, acceleration clauses, and collection cost recovery rules that determine when the lender can accelerate the debt or pursue deficiency judgments.

Assignment Terms

Provisions allowing the lender to assign or sell the contract, transfer rights, and notify the borrower of any assignee to maintain enforceability and payment routing.

Consumer Disclosures

Required disclosures including finance charge, APR, total of payments, itemization of amounts financed, and any statutory notices to satisfy federal and state consumer protection standards.

Step-by-step: completing the agreement from start to finish

Follow this simple sequence to prepare, execute, and perfect a Retail Installment Contract and Security Agreement.

  • 01
    Collect documents: Gather IDs, title information, and payment details.
  • 02
    Enter borrower data: Populate legal name, address, SSN/TIN, and contact info.
  • 03
    Calculate terms: Complete APR, payment schedule, and finance charge fields.
  • 04
    Sign and retain: Obtain signatures, provide buyer copy, and file as needed.

Where to send, file, and store each copy

A clear routing plan ensures compliance and preserves lien priority; use the following destinations when finalizing the transaction.

  • Buyer Copy: Provide a signed copy to the borrower at closing.
  • Lender File: Retain an original in the lender’s active loan file.
  • UCC Filing: File a UCC-1 financing statement with the state Secretary of State to perfect the lien.
  • Electronic Archive: Store a secured electronic copy with audit trail for retention compliance.

Typical digital workflow configuration for online completion

Configure an electronic template to reduce errors and speed execution; match fields to signatures and authentication steps.

Upload Template Add the contract PDF or DOCX for reuse.
Define Fields Place name, date, numeric, and checkbox fields.
Authentication Select email, SMS, or stronger verification.
Signing Order Set the sequence for seller and buyer.
Archive Location Send completed copy to secure cloud storage.

Digital signing and platform considerations

Ensure the provider supports secure storage, exportable audit trails, and any required regulatory controls to demonstrate intent, attribution, and record retention.

  • File formats: PDF and DOCX supported
  • Integrations: CRM, ERP, cloud storage
  • Authentication: Email, SMS, or advanced options

Key timing and delivery expectations

Certain disclosures and filing actions are time-sensitive; follow these general timing expectations to reduce risk.

Provide Buyer Copy:

Deliver a signed copy at signing or immediately after.

UCC Filing:

File UCC-1 promptly to protect priority rights.

Disclosure Timing:

Give finance disclosures before consummation when required.

Payment Due Dates:

State precise monthly or installment due dates.

Record Retention:

Preserve signed records according to applicable retention rules.

Consequences of errors or omissions

Unenforceable Lien: Incorrect collateral description
Disclosure Violations: Missing finance disclosures
Tax Withholding: Invalid TIN triggers backup withholding
Priority Loss: Late or improper UCC filing
Usury Risk: Exceeding state interest limits
Collection Costs: Penalty exposure and legal fees

Common preparation and execution pitfalls

  • Using inconsistent borrower names between contract and ID, which can defeat lien perfection and complicate credit reporting.
  • Failing to provide required consumer finance disclosures at the correct time, exposing the lender to statutory remedies or rescission rights.
  • Entering an incomplete collateral description that prevents a UCC-1 from accurately identifying the property, decreasing enforceability on default.
  • Neglecting to retain audit trails and signed copies in secure storage, making it difficult to prove execution or contest disputes later.

How this combined contract differs from related documents

A quick comparison clarifies when to use the Retail Installment Contract together with a Security Agreement versus standalone alternatives.

Document Retail Installment Contract Security Agreement Only
Purpose sale with financing pure pledge of collateral
Collateral recorded yes — integrated yes — separate
Consumer disclosures typically required not typically required
Typical use retail vehicle/equipment sale secured loan between parties

Example eSignature vendor pricing and feature checklist

Common platform attributes affect how efficiently you can execute and retain Retail Installment Contracts and Security Agreements; signNow is listed first for comparison.

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 Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Varies Varies No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Representative use cases and real-world context

These short examples show common scenarios where a combined contract and security agreement is used.

Dealer Financing

A car dealer provides in-house financing to a buyer

  • The dealer records the lien and supplies the buyer a copy at signing
  • The lender files a UCC-1 and maintains an electronic audit trail to show the date of perfection and support repossession if necessary.

Equipment Sale

A small business purchases construction equipment on installments

  • The seller retains a security interest until paid in full
  • The parties include a serial-number collateral description and the lender secures priority with a timely UCC-1 filing.

Practical tips for accurate and efficient completion

Adopt consistent templates, validate identity information, and standardize filing and archive procedures to reduce dispute risk.

Use standardized templates
Maintain a template that includes all required disclosures and field validation to avoid omissions and inconsistent terms.
Verify borrower identity
Compare government ID to entered name and address to prevent defective filings and credit-reporting errors.
Perfect the lien promptly
File UCC-1 financing statements quickly to preserve priority and reduce the chance of competing claims.
Retain audit records
Keep signed copies, timestamps, and chain-of-custody logs to defend against claims of forgery or nonconsent.

Frequently asked questions and answers

[INTRO] Answers to common questions about completing, filing, and enforcing Retail Installment Contracts and Security Agreements.


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