Security Agreement for Installment Sale of Mobile Home

Security Agreement with regard to Installment Sale of Mobile Home

Agreement made on the , between of , referred to herein as Buyer, and , of , referred to herein as Seller.

1. Purchase and Security Interest

For valuable consideration, the receipt of which is acknowledged, Buyer purchases from Seller and, pursuant to grants to Seller a security interest in the following described Mobile Home:

A. Model: Year:

B. Serial No.

C. Number of bedrooms:

D. Approximate length: Approximate width:

E. License No.

F. Color:

The security interest granted in this Agreement includes all accessions, accessories, parts, and equipment now or later affixed to the Mobile Home, and all replacements, products, and proceeds of the same. All of the said property is referred to in this Agreement as Collateral.

2. Debt Secured

The security interest granted in this Agreement secures the Promissory Note attached to this Agreement in the principal amount of $, and all other liabilities of Buyer, direct or indirect, contingent or absolute, and however arising, to Seller from the purchase of Collateral.

3. Title to Collateral

Until all installments and all other amounts due under this Agreement have been paid in full, Seller shall retain title to and a security interest in Collateral.

4. Priority of Security Interest

The security interest granted in this Agreement to secure the Promissory Note attached to this Agreement is a first and prior security interest on Collateral, and any security interest in Collateral securing other indebtedness now or in the future owing by Buyer to Seller, or any assignee of Seller, is subordinate to the security interest granted in this Agreement.

5. Additional Instruments

Buyer shall join in executing, and shall pay all costs of filing, any financing or termination statement required with respect to Collateral, and Buyer appoints Seller as attorney-in-fact for Buyer to do whatever Seller may deem necessary to perfect or continue perfected the security interest of Seller in Collateral.

6. Location of Collateral

After possession of Collateral is acquired by Buyer, Collateral shall be located at . Buyer shall immediately advise Seller in writing of any change in location of Collateral.

7. Use of Collateral

Collateral shall be used by Buyer as a residence.

8. Protection of Collateral

Buyer shall keep Collateral in good condition, free from liens and other security interests, and shall pay promptly all taxes, assessments, or other charges on Collateral or with respect to the use of Collateral. Buyer shall not use Collateral or any part of it illegally or in violation of any applicable statute or ordinance or in any manner inconsistent with this Agreement or any policy of insurance on Collateral, or allow Collateral to be so used. Buyer shall not lease, encumber, or dispose of Collateral or remove Collateral from without the prior written consent of Seller.

9. Insurance

Buyer shall insure Collateral against all risks in form, amounts, and with an insurer satisfactory to Seller. If Buyer fails to obtain such insurance, Seller shall have the right, without waiver of any other remedy, to obtain at the expense of Buyer such insurance. Buyer assigns to Seller all the right to receive proceeds of insurance not exceeding the unpaid balance, including any costs of collection, attorney's fees, or other costs actually incurred in connection with the same, and Buyer directs any insurer to pay all such proceeds directly to Seller and authorizes Seller to indorse any draft for such proceeds. In the event of damage to Collateral and payment of insurance on the same, Seller shall have the option of replacing Collateral or applying such proceeds on any obligation secured by this Agreement. Seller may, on default under this Agreement or default in the payment or performance of any obligation secured by this Agreement, cancel any insurance on Collateral after repossession of the same, or on that portion of Collateral repossessed if less than all.

10. Loss or Damage

Loss of or damage to Collateral shall not release Buyer from the obligations of Buyer under this Agreement. Repairs to Collateral and to equipment or accessories placed on Collateral shall be at the expense of Buyer and shall constitute component parts of Collateral subject to the terms of this Agreement.

11. Notice

Notice to Buyer, required under this Agreement or by or other applicable statutes of , shall be deemed given when sent to the above-stated address of Buyer.

12. Late Charges

If Buyer defaults in the payment of any installment, Buyer shall immediately pay Seller, in addition to all amounts then due under this Agreement, a late charge of % of the installment in default.

13. Default

The occurrence of any of the following shall constitute a default under this Agreement:

A. Failure of Buyer to perform any obligation or Agreement specified in this Agreement;

B. Material falsity when made of any warranty or representation made under this Agreement by Buyer;

C. Death of Buyer;

D. Institution of any proceeding in bankruptcy, receivership, or insolvency against Buyer or against any obligor on any such secured obligation, institution by any party of any action for attachment or similar process against Collateral, issuance of execution process against any property of Buyer or any such obligor, entry of any judgment against Buyer or any such obligor, any assignment for benefit of creditors, or similar action adversely involving Buyer or any such obligor.

E. Condemnation, levy, forfeiture, or similar action against Collateral or any part of the same.

F. Good-faith belief by Seller on reasonable grounds that the prospect of performance of any obligation of Buyer under this Agreement, or of performance or payment of any obligation secured by this Agreement, by Buyer or any other obligor on the obligation, is materially diminished.

14. Remedies

In the event of a default under this Agreement, Seller shall have the right to declare all unpaid installments immediately due, enter any premises of Buyer and without breach of the peace take possession of Collateral, and exercise any or all of the rights on default possessed by a secured party under . Seller may require Buyer to assemble Collateral and make Collateral available to Seller at a place to be designated by Seller that is reasonably convenient to Seller and Buyer. Any notice of sale, disposition, or other intended action by Seller, sent to Buyer at the address specified above or such other address of Buyer as may from time to time be shown on the records of Seller, at least days prior to such action, shall constitute reasonable notice to Buyer. Buyer shall pay all costs and expenses incurred in enforcing the remedies of Seller under this Agreement, including reasonable attorney's fees and all advances made by Seller to protect its security interest under this Agreement, including advances made for or on account of levies, insurance, repairs, taxes, and for maintenance or recovery of Collateral.

15. 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.

16. 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.

17. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

18. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

19. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

20. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

21. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

22. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

23. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

24. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.