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Consumer Goods With Retail Instalment Sale-With Attached Note
CONSUMER GOODS WITH RETAIL INSTALMENT SALE-WITH ATTACHED NOTE
Installment sale and security agreement made [Date of agreement], between [Name of seller], of [Address of seller], in this agreement referred to as seller, and [Name of debtor], of [Address of debtor], in this agreement referred to as buyer.
Subject to the terms and conditions of this agreement, seller hereby sells to buyer, and buyer hereby purchases from seller, and grants to seller a security interest in the following described property, together with all accessories, attachments, parts, equipment, additions and repairs now or hereafter affixed thereto or used in connection therewith, in this agreement referred to as goods: [describe collateral in detail].
[terms of sale].
The terms and conditions following the signatures of the parties are a part of this agreement and are hereby incorporated into it. Buyer and each other party liable for payment hereunder acknowledges receipt of a copy of this instrument duly completed prior to signing.
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. Keep this agreement to protect your legal rights.
In witness whereof, the parties have executed this agreement at [designated place of execution] the day and year first above written.
Signature Date
Signature Date
NOTICE
Any Holder Of This Consumer Credit Contract Is Subject To All Claims And Defenses Which The Debtor Could Assert Against The Seller Of The 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
1. Creation of security interest. In addition to the above-granted security interest in goods, a security interest is likewise granted in the proceeds of goods, which grant shall not be construed to mean that seller consents to the sale of goods. The security interest hereby created in goods and the proceeds thereof is given to secure payment and performance of buyers obligations hereunder.
2. Warranties and representations of buyer. Buyer warrants and represents to seller the following:
a. Buyer has, or forthwith shall acquire, title to goods from seller free and clear of all liens, security interests, and encumbrances.
b. No financing statement covering any of goods is or shall be filed in any public office.
c. If buyer is a corporation, its certificate or articles of incorporation and its bylaws do not prohibit any term or condition of this agreement.
d. The execution and delivery of this agreement shall not violate any law or agreement governing buyer or to which buyer is a party.
e. All other information and statements in this agreement are true and correct.
3. Covenants of buyer. Unless and until seller expressly agrees to another course of action, buyer covenants as follows:
a. Goods shall be kept at [designated location to store goods].
b. Buyer shall not sell, transfer, lease, abandon or otherwise dispose of any of goods or any interest in the goods.
c. Buyer shall keep goods in good condition and free of liens, security interests and encumbrances, other than the security interest created by this agreement. Buyer shall not use goods for hire or in violation of any applicable statute, ordinance or insurance policy, shall defend goods against the claims and demands of all persons, shall promptly pay all taxes and assessments with respect to goods, and shall not permit goods to become a part of or to be affixed to any real or personal property without first making arrangements satisfactory to seller to protect sellers security interest.
d. Buyer shall promptly notify seller of any default as defined in this agreement.
e. Seller may inspect goods at any time, wherever located.
f. Buyer shall keep goods insured with companies acceptable to seller against such casualties and in such amounts as seller may require. If requested by seller, all insurance policies shall be written for the benefit of buyer and seller as their interests may appear, shall provide for days written notice to seller prior to cancellation, and shall be deposited with seller. Seller may act as attorney for buyer in making, adjusting and settling claims under or canceling such insurance and indorsing buyers name on any drafts relating thereto. Seller may apply any proceeds of insurance toward payment of the obligations hereunder, whether due or not due, in any order of priority.
g. At its option, seller may discharge taxes, liens, security interests and other encumbrances against goods and may pay for the repair of any damage to goods, the maintenance and preservation thereof, and insurance thereon. Buyer shall reimburse seller on demand for any payment so made, plus interest thereon, at the rate of percent per year from the date of such payment. Any such payment by seller shall be secured by goods.
h. Buyer shall from time to time execute financing statements and other documents in forms satisfactory to seller as seller may require and shall pay the cost of filing or recording them in whatever public offices seller deems necessary. Buyer shall perform such other acts as seller may request to perfect and maintain a valid security interest in goods.
4. Assignment of agreement. Buyer acknowledges notice of intended assignment of this agreement to [Name of assignee], whose address is [Address of assignee]. Buyer shall not set up any claim against such assignee as a defense, counterclaim, setoff or otherwise, to any action for payment or possession brought by such assignee on this agreement, except defenses that may be asserted against a holder in due course of a negotiable instrument. All claims with respect to the sale evidenced hereby are to be settled directly with seller.
5. Events of default. Buyer shall be in default under this agreement on the happening of any of the following events or conditions:
a. Default in due payment, performance or observance of any of buyers obligations hereunder.
b. Falsity in any material respect when made in any warranty, representation, or statement of buyer in this agreement or otherwise made or furnished to seller by or on behalf of buyer.
c. Any event that results in the acceleration of the maturity of buyers indebtedness to seller or to any other person.
d. Seizure or taking of goods by any governmental or similar authority or issuance of a writ or order of attachment or garnishment with respect thereto.
e. Death of, dissolution of, insolvency, however expressed or indicated, of, termination of existence of, appointment of a receiver of any part of the property of, assignment for the benefit of creditors by, or commencement of any proceeding under any bankruptcy, reorganization, arrangement, insolvency or other law relating to the relief of debtors by or against buyer or any guarantor or surety for buyer under any of the obligations hereunder.
f. Good faith belief by seller that the obligations hereunder are inadequately secured or that the prospect of payment, performance or observance of any of the obligations is impaired.
6. Remedies. On the occurrence of any event of default, seller may, without notice or demand, declare any of the obligations under this agreement immediately due and payable and this agreement in default. Thereafter, seller shall have the remedies of a secured party, including, without limitation, the right to take possession of goods and any proceeds thereof. To take possession, seller may enter on any premises and remove goods or any proceeds therefrom. Buyer shall make goods available to seller at a place to be designated by seller that is reasonably convenient to both parties. If notice is required by law, days prior written notice of the time and place of any public sale, or of the time after which any private sale or any other intended disposition of the goods is to be made, shall be reasonable notice to buyer. No such notice is necessary if the goods are perishable, threaten to decline speedily in value, or are of a type customarily sold on a recognized market. Proceeds of any sale or other disposition of goods may be applied to the obligations hereunder in any order of priority. During the time that seller is in possession of the goods, and to the extent permitted by law, seller shall have the right to hold, use, operate, manage and control all or any part of goods; to make all such repairs, replacements, alterations, additions and improvements to goods as it may deem proper; and to demand, collect and retain all earnings, proceeds and other sums due or to become due with respect to goods, accounting only for the net earnings arising from such use and charging against receipts from such use all other costs, expenses, charges, damage or loss by reason of such use. Notwithstanding the foregoing, seller shall also be entitled, without notice or demand and to the extent permitted by law, to have a receiver appointed to take charge of all or any part of goods, exercising all of the rights specified in the immediately preceding sentence. Buyer shall pay to seller all expenses, including reasonable attorney fees and legal expenses, of or incidental to retaking, holding, preparing for sale, or selling goods, and otherwise enforcing any term or condition of this agreement. All such expenses shall be a fixed indebtedness of buyer to seller, secured by goods.
7. Waiver. No default shall be waived by seller except in writing, and no waiver of any payment or other right under this agreement shall operate as waiver of any other payment or right.
8. Notice. Any consent, notice and other communication required or contemplated by this agreement shall be in writing. If intended for buyer, it shall be deemed given if mailed, postage prepaid, to buyer at the address given in this agreement or at such other address given by notice as provided in this agreement. If intended for seller, notice shall be deemed given only if actually received by seller.
9. Construction of agreement. This agreement shall be construed under and governed by the laws of [State of jurisdiction]. Unless the context otherwise requires, all terms used in this agreement that are defined in, [Local enactment of UCC] shall have the meanings therein stated. If there is more than one buyer, all of the terms and conditions of this agreement shall apply to each and any of them.
10. Effect of agreement. Without affecting any obligation of buyer under this agreement, seller, without notice or demand, may renew, extend or otherwise change the terms and conditions of any of the obligations hereunder, take or release any other collateral as security for any of the obligations, and add or release any guarantor, endorser, surety or other party to any of the obligations. All the rights of seller under this agreement shall be cumulative and shall inure to the benefit of its successors and assigns. All obligations of buyer hereunder shall be binding on buyers heirs, legal representatives, successors and assigns.
PROMISSORY NOTE
Dated [Date of promissory note]
$ [Amount of promissory note]
For value received, the undersigned, [Name of buyer], of [Address of buyer], in this agreement referred to as maker, promises to pay to the order of [Name of seller], of [Address of seller], the sum of Dollars, payable in monthly installments of [Monthly installment amount] Dollars each, except the final payment, which shall be the balance then due on this note. The first instalment shall be paid on [Date of first installment], and subsequent installments on the same day in each successive month thereafter, until this note has been paid in full. This note is secured by a security agreement of the same date. Maker and any and all endorsers, guarantors and accommodation parties of or on this note, hereafter collectively referred to as maker and any other signer, jointly and severally agree as follows:
1. At the option of the holder, the unpaid balance of this note, less unearned interest, shall become immediately due and payable without notice or demand if:
a. Any payment required by this note is not made when due.
b. Default occurs under any loan or security agreement or other instrument executed as security for or in connection with this note.
c. The holder at any time in good faith believes that the prospect of any payment required by this note is impaired, whether or not such belief is caused by any act or failure to act of maker or any other signer.
2. After maturity, whether by acceleration or otherwise, this note shall bear interest at the rate of percent per year. At the option of the holder of this note, in lieu of acceleration of maturity, the holder may collect and receive on each instalment in default [Number of days to collect] days or more a delinquency charge calculated at the rate of [Percentage rate] percent of each such instalment, or [Amount to pay] Dollars, whichever is the lesser amount.
3. Maker and any other signer waive presentment, notice of dishonor, and protest, and assent to any extension of time with respect to any payment due under this note, to any substitution or release of collateral, and to the addition or release of any party.
4. No waiver of any payment or other right under this note shall operate as a waiver of any other payment or right.
5. Maker and any other signer shall pay all reasonable costs of collection, including attorney fees, paid or incurred by the holder in enforcing this note on default.
6. If such default occurs, maker and any other signer authorize the holder to enter an appearance on their behalf, waiving the issuance and service of process, and to confess judgment against them in any court of record for any amount due under this note, including attorney fees, costs, and expenses. Maker and any other signer consent to immediate issuance of execution on the judgment so confessed, and agree that no appeal will be prosecuted on such judgment.
7. This note shall be construed under and governed by [local enactment of UCC] and the other laws of [State of jurisdiction]. If there is more than one maker, all provisions of this note shall apply to each and any of them.
Signature Date