Contract for the Sale of Motor Vehicle Owner Financed

with Provisions for Note and Security Agreement

Agreement made on the _____________ (date), between _________________
(Name of Buyer) of _____________________________________________________
___________________ (street address, city, county, state, zip code), referred to
herein as Buyer, and ___________________ (Name of Seller), of ________________
________________________________________________________ (street address,
city, county, state, zip code), referred to herein as Seller.
1.

Sale of Motor Vehicle

Seller shall sell, transfer, and deliver to Buyer on or before _________________
(date of sale), the following described Motor Vehicle (hereinafter called Vehicle)

New or used: __________ (state whether new or used);

Year and model: ______ (year of Vehicle) and __________ (model of Vehicle);
Number of cylinders: ______ (number);
Make or trade name: __________ (make);
Body type: _____________ (body type);
Model number or series: _______________ (number);
Manufacturer's Serial Number: ___________________ (number);
Motor Number: ______________ (number).

2.

Consideration
Buyer shall pay $________________ (dollar amount) to be applied on the
purchase price, and agrees to pay the balance of the purchase price as follows:
$____________ (dollar amount), to be evidenced by a Promissory Note of Buyer,
providing for full prepayment privileges without penalty. Said Note shall be in the form
attached hereto as Exhibit B. The balance of said purchase price shall be secured by
the security agreement set forth in Paragraph 4 below.
3.

Payment on Receipt
Buyer shall pay $_________ (dollar amount) at the time when, and at the place
where, the Vehicle is received by Buyer.
4.

Security Agreement
A.
Buyer grants to Seller a security interest in the Vehicle and any and all
additions and accessions (the Collateral) to secure the payment of Promissory
Note and any and all other liabilities, direct or indirect, absolute or contingent,
now existing or arising later to Seller (collectively, the Obligations).
B.
Except for the security interest granted by this Agreement, Buyer shall be
the owner of Collateral free from any adverse lien, security interest, or
encumbrance. Buyer shall defend Collateral against all claims and demands of
any or all persons claiming Collateral or any interest in the Collateral.

C.
Buyer shall not sell or offer to sell or otherwise transfer Collateral or any
interest in the Collateral without the written consent of Seller.
D.

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
Agreement or in Vehicle.
E.
Until default Buyer may have possession of Collateral and use it in any
lawful manner not inconsistent with this Agreement and not inconsistent with any
policy of insurance with respect to Collateral.
F.
Buyer shall keep Collateral free from any adverse lien, security interest, or
encumbrance and in good order and repair, and shall not waste or destroy
Collateral or any part of the same. Buyer shall not use Collateral in violation of
any statute or ordinance. Seller may examine and inspect Collateral at any
reasonable time, wherever located.
G.
Buyer shall have and maintain insurance against risk of fire at all times
with respect to all of Collateral, including so-called extended coverage, of theft,
and of such other casualties as Seller may require. The policies of insurance
shall contain such terms and be in such form, for such periods, and written by
such companies as may be satisfactory to Seller. Such insurance shall be
payable to Seller and Buyer as their interests may appear. All policies of
insurance shall provide for _____ (number) days' written minimum cancellation
notice to Seller.
H.
Buyer shall furnish Seller with certificates or other evidence satisfactory to
Seller of compliance with the requirements set forth in this section.
I.
Seller may act as attorney-in-fact for Buyer in obtaining, adjusting, settling,
and canceling such insurance and endorsing any related drafts.
J.
Buyer shall pay promptly when due all taxes and assessments on
Collateral or levied on its use or operation, and taxes and assessments on this
agreement, or on the note attached to this agreement or any other note or notes
evidencing Obligations.
K.
At his option, Seller may discharge taxes, liens, security interests, or other
encumbrances at any time levied or placed on Collateral, may pay for insurance
on Collateral, and may pay for the maintenance and preservation of Collateral.

Buyer shall reimburse Seller on demand for any payment made or any expense
incurred by Seller pursuant to the foregoing authorization.
L.

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 Agreement:
1.

Failure punctually to make any payment due under this Agreement;

2.

Failure to comply with any of the terms or conditions of this

Agreement;

3.

Institution of a proceeding in bankruptcy, receivership, or insolvency

against Buyer or Buyer's property.

4.

Seller deems Vehicle in danger of misuse or confiscation.

5.

Buyer fails for any reason to comply with Subparagraph G above,

or the required motor vehicle insurance, whether procured by Seller
or by Buyer, is canceled by the insurer prior to expiration of the
insurance.

M.

Remedies
On default under this Agreement, Seller shall have the right, his election,
to declare the unpaid balance, together with any other amount for which Buyer
shall be obligated under this Agreement, 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 Article 9 of the Uniform Commercial Code of the State of
______________ (Name of State) and as are otherwise provided and permitted
by law.
5.

Receipt Construed as Delivery

The Vehicle shall be deemed received by Buyer when delivered to Buyer at
_____________________________________________________________________
(address of Buyer).
6.

Risk of Loss
The risk of loss from any casualty to the Vehicle, regardless of the cause, shall
be on Seller until the Vehicle has been accepted by Buyer.

7.

Warranty of No Encumbrances
Seller warrants that the Vehicle are now free, and that at the time of delivery shall
be free from any security interest or other lien or encumbrance.
8.

Warranty of Title
Seller warrants that at the time of signing this Agreement Seller neither knows,
nor has reason to know, of the existence of any outstanding title or claim of title hostile
to the rights of Seller in the Vehicle.
9.

Right of Inspection
Buyer shall have the right to inspect the Vehicle on arrival and, within ______
(number) business days after delivery, Buyer must give notice to Seller of any claim for
damages on account of condition, quality or grade of the Vehicle, and Buyer must
specify the basis of the claim of Buyer in detail. The failure of Buyer to comply with
these conditions shall constitute irrevocable acceptance of the Vehicle by Buyer.
10.

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.
11.

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.
12.

Governing Law
This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of ________________ (Name of State).
13.

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.
14.

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.

15.

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.
16.

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.
17.

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.
18.
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.
WITNESS our signatures as of the day and date first above stated.
________________________
(Printed Name of Seller)
________________________
(Signature of Seller)

_________________________
(Printed Name of Buyer)
_________________________
(Signature of Buyer)

(Acknowledgment form may vary by state)

State of _____________________
County of __________________
Personally appeared before me, the undersigned authority in and for the said
County and State, on this _______________ (date), within my jurisdiction, the withinnamed ____________________ (Name of Seller), who acknowledged that he
executed the above and foregoing instrument.

________________________________
NOTARY PUBLIC
My Commission Expires:
____________________

State of _____________________
County of ___________________
Personally appeared before me, the undersigned authority in and for the said
County and State, on this _______________ (date), within my jurisdiction, the withinnamed _________________ (Name of Buyer), who acknowledged that he executed
the above and foregoing instrument.

________________________________
NOTARY PUBLIC
My Commission Expires:
____________________