Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle
Contract No. ___________________
Installment sale and security agreement made _________________ (date), between
____________________________ (Name of Secured Party), a corporation organized and
existing under the laws of the state of ________________, with its principal office located at
____________________________________________________________________________
(street address, city, county, state, zip code) , hereinafter called Seller, and
________________________ (Name of Debtor), of __________________________________
___________________________________ (street address, city, state, zip code), 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 -- $ 0.00 1
(the amount of credit provided to you or on your behalf)
2. FINANCE CHARGE -- $ 0.00 (the dollar amount the credit will cost you)
3. ANNUAL PERCENTAGE RATE – 0.00% (the cost of your credit as a yearly rate)
4. Total of Payments -- $ 0.00 (the amount you will have paid after you have made all
payments as scheduled)
1 Whenever $0.00 or 0.00% are used, they are merely being used as space fillers (rather than leaving a
blank).
5. Total Sales Price -- $ 0.00 (the total price of your purchase on credit, including your
down payment of $ 0.00)
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) ($ Dollar Amount) (First Date)
(Number) ($ Dollar Amount) (Second Date)
(Number) ($ Dollar Amount) (Third Date)
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.
Type of Insurance Premium Signature I want credit life insurance.
Credit Life ($ Dollar Amount)
_____________________
Your Signature
Credit Disability ($ Dollar Amount)I want credit disability
insurance. _____________________
Your Signature
Credit Life & Disability ($ Dollar Amount)I want credit Life & disability
insurance. _____________________
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 $ __________ (dollar
amount) for _______ (number) 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
____________________________________________________________________________
_________________ (citation of regulation) . 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 ___________________________ (Citation of Article 9 of
State’s Uniform Commercial Code, Article 9) 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 _____ (number) 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 _____________________________ (Citation of
Article 9 of State’s Uniform Commercial Code, Article 9) 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, _____________
(including or excluding) $___________ (dollar amount of deductible collision) deductible
collision, covering accidental physical damage to Vehicle for a term of ______ (number)
months, ____________ (including or excluding) 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 ________________ (name of insurer), of
__________________________________________________________ (address of insurer),
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 $_____________
(maximum dollar amount of insurance) . 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 $____________ (maximum
aggregate dollar amount of insurance). The term of insurance commences on the date of this
contract and continues until, but not later than the ______ (number) 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) ______________________ (name of insurer) 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
________________________ (name of insurer) 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 InsuranceIf 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) .
__________________________
(Name of Seller)
________________________ By:_________________________
(Printed name) _________________________
________________________ (Printed name & Office in Corporation)
(Signature of Buyer) _________________________
(Signature of Officer)
