Security Agreement for Retail Installment Sale of Automobile

Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle

Contract No.

Installment sale and security agreement made , between

, a corporation organized and existing under the laws of the state of , with its principal office located at

hereinafter called Seller, and , of

hereinafter called Buyer.

Seller hereby sells and Buyer hereby purchases, on the terms and conditions set forth in this Agreement, the following motor vehicle, hereinafter called Vehicle, delivery and acceptance of which is acknowledged by Buyer:

New or used:

Year and model:

No. of cylinders:

Make or trade name:

Body type (If truck, give tonnage):

Model number or series:

Manufacturer's serial No.:

Motor No.:

Optional equipment or accessories (Check, if included on Vehicle):

Radio

Automatic transmission

Power steering

Tinted glass

4 speed transmission

Power brakes

Power windows

Power seats

Air conditioning

High H/P engine

Terms of Sale

1. Amount Financed -- $ (the amount of credit provided to you or on your behalf)

2. FINANCE CHARGE -- $ (the dollar amount the credit will cost you)

3. ANNUAL PERCENTAGE RATE – (the cost of your credit as a yearly rate)

4. Total of Payments -- $ (the amount you will have paid after you have made all payments as scheduled)

5. Total Sales Price -- $ (the total price of your purchase on credit, including your down payment of $ )

6. Itemization of Amount Financed. You have a right to receive a written itemization of the Amount Financed. If you DO want a written itemization of the Amount Financed, you will receive one only if you check the "Yes" box immediately below. If you check the "No" box or do not check either box, you will not receive a written itemization.

yes no

7. Payment Schedule. Your payment schedule will be:

Number of Payments Payment Amount When Payments Are Due

Number of Payments Payment Amount When Payments Are Due

Number of Payments Payment Amount When Payments Are Due

8. Insurance. Credit life insurance and credit disability insurance are not required to obtain credit, and will not be provided unless you sign in the space(s) immediately below and agree to pay the additional cost indicated.

I want credit life insurance. Credit Life ($ Dollar Amount) Your Signature

I want credit disability insurance. Credit Disability ($ Dollar Amount) Your Signature

I want credit Life & disability insurance. Credit Life & Disability ($ Dollar Amount) Your Signature

You may obtain property insurance from anyone you want that is acceptable to Seller/creditor or its assignee. If you get the insurance from Seller/creditor, you will pay $ for months' coverage.

9. Buyer acknowledges receipt of a copy of this Agreement. The terms and conditions following the signatures of the parties are incorporated in, and made a part of, this Agreement for all purposes.

Notice to Buyer: Do not sign this Agreement before you read it or if it contains blank spaces.

You are entitled to a copy of the contract you sign. You have the right to pay in advance the unpaid balance of this agreement and obtain a partial refund of the FINANCE CHARGE based on

Keep this Agreement to protect your legal rights.

NOTICE

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

Other Terms and Conditions

I. Creation of Security Interest

For the purpose of securing payment of the obligation under this Agreement, Seller shall have a security interest pursuant to in Vehicle until such obligation is fully paid in cash. In the event of any sale or other disposition of Vehicle or any interest in it, the proceeds shall also be covered by such security interest.

II. Delinquent Charges

Time is of the essence of this contract. Any installment or amount payable under this Agreement, if unpaid days after it becomes due shall include a sum equal to the highest lawful delinquent charges permitted under the law of the State of .

III. Charges for Extension

If Seller, at Buyer's request, agrees to extend the time for payment of any installment, the charge for such extension shall be at the highest lawful contract rate of interest.

IV. 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 contract or in Vehicle.

V. Assignment of Contract

No assignment, transfer, renewal or extension of this contract or any interest under this contract, and no loss, damage or destruction of Vehicle, shall release Buyer from his obligation under this agreement. In the event of assignment of Seller's rights under this agreement, the word "Seller" shall be understood as referring to any assignee of this contract, except as may be otherwise particularly stated in this agreement. Buyer shall not assert against any assignee of this contract any claim or defense that Buyer may have against the undersigned Seller or against the manufacturer or any other Seller of Vehicle or any component, accessory, or part of Vehicle.

VI. 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 contract:

A. Failure punctually to make any payment due under this contract.

B. Failure to comply with any of the terms or conditions of this contract.

C. Institution of a proceeding in bankruptcy, receivership, or insolvency against Buyer or Buyer's property.

D. Seller deems Vehicle in danger of misuse or confiscation.

E. Buyer fails for any reason to comply with Paragraph 7 of this contract, or the required motor vehicle insurance, whether procured by Seller or by Buyer, is canceled by the insurer prior to expiration of the insurance.

VII. Remedies

On default under this contract, Seller shall have the right, at its election, to declare the unpaid balance, together with any other amount for which Buyer shall be obligated under this contract, 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 and as are otherwise provided and permitted by law.

VIII. Motor Vehicle Insurance

THE INSURANCE, IF ANY, REFERRED TO IN THIS CONTRACT DOES NOT INCLUDE COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE CAUSED TO OTHERS.

A. The charge for required motor vehicle insurance stated on the face of this contract shall be used for insurance providing comprehensive coverage, $ deductible collision, covering accidental physical damage to Vehicle for a term of months, optional coverage for towing and labor costs.

B. Insurance settlement shall be based on the actual value of Vehicle at the time of loss, not to exceed the limits of liability set forth in the policy, and shall be payable to Buyer or to Seller or Seller's assignee as their interests may appear.

C. The policy shall be issued by , of , and the coverage shall be according to the terms and conditions set forth in such policy.

D. The maximum amount of insurance under this contract is $. The maximum aggregate amount of insurance under this and any other installment contract between Buyer and Seller, when the insurer designated above is the insurer designated in each of the several contracts, is $. The term of insurance commences on the date of this contract and continues until, but not later than the day after, the date provided above for payment of the final installment under this contract, on which the unpaid balance of the obligation under this contract is or becomes paid in full, unless the insurance is automatically terminated on an earlier date as provided in such policy.

E. If either: (1) the obligation payable under this contract includes a charge for the motor vehicle insurance, to be procured either by Seller or by Buyer, for a period less than the full term of this contract; or (2) such obligation does not include a charge for motor vehicle insurance, Buyer shall furnish satisfactory evidence that Vehicle continues to be effectively and adequately covered by motor vehicle insurance at all times during the term of this contract. On Buyer's failure to do so for any reason, Seller may, but without prejudice to Seller's rights under this contract if it does not, endeavor to procure such insurance. If Seller does procure such insurance, Buyer shall pay, as an additional part of the obligation secured by this contract, a charge equal to the amount of the premium for such insurance, together with interest at the highest lawful contract rate, in equal installments concurrently with the installments of the unpaid balance then remaining payable under this contract.

F. Proceeds of the required motor vehicle insurance, by whomsoever procured, shall be applied toward replacement of Vehicle or payment of this obligation, at Seller's option.

G. If a charge for the motor vehicle insurance protecting all interests under this contract is an item included in the obligation payable under this contract or a charge for such insurance becomes included at any future time under Subparagraph E of this contract, and if: (1) refuses to issue such insurance; or (2) subsequent to issuance of the same and during the term of this contract such insurance is canceled, Seller shall apply either an amount equal to the above insurance charge in the event of (1) above or, in the event of (2) above, an amount equal to the unearned portion of the premium for such insurance on Seller's receipt of the same from the insurer as a credit in reduction of that portion of the unpaid balance that comprises so much of one or more of the installments payable on the latest due dates, including the final due date, under this contract as equals the amount now provided to be applied. The order of applying such amount to such installments shall be inverse to the order in which they are payable under this contract. In the further event that Seller procures insurance covering solely Seller's interest under this contract pursuant to Paragraph H, the amount to be credited and applied in the above events shall be reduced by an amount equal to the cost of such insurance covering solely the interest of Seller.

H. If: (1) at the time of execution of this contract Seller is authorized to apply for the required motor vehicle insurance protecting all interests under this contract and refuses to issue such insurance; (2) Buyer fails for any reason to furnish satisfactory evidence of such insurance as provided in Subparagraph E and Seller either is unable to procure such insurance or elects not to endeavor to procure the insurance; or (3) such insurance is procured by Seller or by Buyer but subsequent to the issuance of the same and during the term of this contract such insurance is canceled, Seller may procure insurance covering solely Seller's interest under this contract, at Buyer's expense for the cost of the same, in which event an amount equal to the cost of such insurance covering solely Seller's interest shall be paid by Buyer either by means of a reduction, to the extent of such cost, in the amount to be credited and applied pursuant to Subparagraph G if such provisions are then applicable or, on demand, together with interest on such amount at the highest lawful contract rate, as an additional part of the obligation secured under this contract, in either case as shall more specifically appear in a notice by Seller to Buyer.

IX. Credit Insurance

If a charge for credit insurance on Buyer's life is included in the obligations stated on the face of this contract:

A. Buyer acknowledges that the charge is included pursuant to his authorization, now confirmed, that such insurance be procured by and in the name of Seller or of the assignee of this contract, from the insurer designated on the face of this contract, against the contingency of Buyer's death during the term of this contract. Such insurance shall be for an amount equal to, and the proceeds of the insurance shall be payable to and applied by Seller or the assignee in payment of, so much of the unpaid balance of the obligation under this contract as does not exceed the amount set forth in such item in the stated obligations as the maximum amount of insurance under this contract. If, however, Buyer has prior to this agreement incurred installment obligations under another contract or other contracts containing a charge for insurance authorized to be procured on Buyer's life from the same insurer as is designated on the face of this contract, the aggregate amount of insurance to the benefits of that Buyer may become entitled under such several contracts, including this one, shall be limited to the amount designated on the face of this contract as the maximum aggregate amount of insurance payable by such insurer under such several contracts, notwithstanding that at the time of Buyer's death the aggregate of the unpaid balance of the obligation under each of such several contracts or the aggregate of the maximum amount of insurance under each contract, whichever is the lesser, exceeds the maximum aggregate amount of insurance under such several contracts. Insurance benefits shall all be in accordance with the terms and conditions set forth in the policy or certificate of insurance issued by the insurer.

B. If: (1) Buyer has incurred installment obligations under several contracts, including this one, containing a charge for insurance procured on Buyer's life from the same insurer as is designated on the face of this contract; (2) the aggregate of the installment obligations under such several contracts exceeds the amount designated on the face of this contract as the maximum aggregate amount of insurance payable by the insurer; (3) the installment obligation under each of such several contracts is or has become payable to Seller or to the assignee of this contract; and (4) during Buyer's lifetime Seller or such assignee is notified in writing to the foregoing effect, then, at such time as the aggregate of so much of the charge contained in each of the several contracts as is included in the installments previously paid under the contracts exceeds the charge, at the same rate, for such maximum aggregate amount of insurance, the balance then payable under one of such several contracts shall be reduced by the aggregate of so much of the charge as is included in the installments subsequently payable under each of such several contracts, as well as by the aggregate of so much of the finance charge itemized on the face of each of such contracts as is applicable to so much of the charge as included in the installments subsequently payable under each of such several contracts, and Buyer shall be credited with payment of the same.

C. If Buyer dies while insurance is in force in the circumstances provided in clauses (1) and (3) of Paragraph B of this Section IX, but prior to the time for the credit provided to be made, and the maximum aggregate amount of insurance under such several contracts is less than the aggregate of the amount of insurance that would otherwise have been applied to payment of Buyer's obligation under each of such several contracts, the legal representative of Buyer shall be entitled to a rebate of the aggregate of the amount of the charge for such insurance included in each of such several contracts, to the extent that such aggregate exceeds the charge, at the same rate, for an amount of insurance equal to such maximum aggregate amount of insurance.

D. The inclusion of the charge for the above-mentioned insurance is: (1) on the understanding that Buyer now waives, and releases Seller or any assignee from, all claims to any and all such rights, benefits, or advantages as may accrue under such insurance, excepting the right under the insurance policy to the application of any proceeds of such insurance in payment of the obligation under this contract; and (2) on the condition that, if Seller is unable for any reason to procure such insurance from the above-mentioned insurer, Seller shall immediately notify Buyer to that effect, and the balance payable under this contract then shall be reduced by the amount of the charge so included, as well as a rebate of so much of the finance charge itemized from the face of this contract as is applicable to the amount of such charge, and Buyer shall be credited with payment of the same.

X. Disclaimer of Warranties

EXCEPT AS PROVIDED IN THIS PARAGRAPH, THERE ARE NO WARRANTIES THAT EXTEND BEYOND THE DESCRIPTION ON THE FACE OF THIS CONTRACT:

A. There is no implied warranty of merchantability, no implied warranty of fitness for a particular purpose, and no implied warranty otherwise extending beyond the description of Vehicle on the face of this contract.

B. No express warranties and no representations, promises, or statements have been made by Seller with respect to Vehicle unless endorsed on this contract, incorporated in this agreement by reference in this agreement, or given in writing by Seller to a prior Buyer of Vehicle if such warranty is in effect on the date of this contract. In any of such events, Seller's obligations under the warranty, if any, shall continue in accordance with the terms of the warranty and regardless of whether Seller has assigned to another Seller's rights under this contract.

XI. Waiver

Seller's acceptance of any installment or payment after either such installment of payment or the full amount of Buyer's obligation under this contract has become due and payable shall not be deemed to alter or affect Buyer's obligations or Seller's rights under this contract with respect to any subsequent payments or any default.

XII. 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.

XIII. 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.

XIV. 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.

The parties have executed this Agreement this the (date).