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Lender (Secured Party):
[Lender’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business located at [Lender’s Address]. -
Borrower (Debtor):
[Borrower’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of residence/business at [Borrower’s Address].
Both parties, having the legal capacity to enter into this Agreement, agree as follows:
1. Loan and Security Interest
1.1. Loan Amount – The Lender agrees to provide the Borrower with a loan in the principal amount of $[Loan Amount] for the purchase of the motor vehicle described below.
1.2. Grant of Security Interest – To secure the repayment of the loan, the Borrower grants the Lender a security interest in the following motor vehicle (“Collateral”):
- Make: [Vehicle Make]
- Model: [Vehicle Model]
- Year: [Vehicle Year]
- VIN (Vehicle Identification Number): [VIN]
- Odometer Reading: [Miles/Kilometers]
- License Plate Number: [License Plate]
1.3. Title and Lienholder Rights – The Lender shall be listed as the lienholder on the vehicle title until the Borrower satisfies all obligations under this Agreement.
2. Payment Terms
2.1. Repayment Schedule – The Borrower agrees to repay the loan in [number] equal installments of $[Payment Amount] due on the [day] of each month, beginning on [First Payment Date], until the loan is paid in full.
2.2. Interest Rate – The loan shall bear an annual interest rate of [X]%, calculated on a [fixed/variable] basis.
2.3. Late Payment Penalties – A late fee of $[Late Fee] shall be applied to any payment not received within [number] days of the due date.
3. Borrower’s Obligations
3.1. Vehicle Use and Maintenance – The Borrower agrees to:
- Maintain the vehicle in good condition and comply with all necessary repairs and servicing.
- Not use the vehicle for illegal activities or high-risk commercial purposes without the Lender’s written consent.
- Keep the vehicle registered and insured as required by law.
3.2. Insurance Requirement – The Borrower shall maintain comprehensive and liability insurance for the vehicle, naming the Lender as a loss payee.
3.3. Restrictions on Sale or Transfer – The Borrower shall not sell, lease, or otherwise transfer the vehicle without the prior written consent of the Lender.
4. Default and Remedies
4.1. The following events constitute Default under this Agreement:
- Failure to make any loan payment when due.
- Failure to maintain the required insurance coverage.
- Sale, transfer, or destruction of the vehicle without Lender’s consent.
- Filing for bankruptcy or insolvency.
4.2. Remedies Upon Default – If the Borrower defaults, the Lender may:
- Declare the entire loan amount due and payable immediately.
- Repossess the vehicle without prior notice, if permitted by law.
- Sell or dispose of the vehicle and apply the proceeds toward the outstanding debt.
- Pursue legal action to recover any remaining balance due after repossession.
5. Governing Law
5.1. This Agreement shall be governed by and construed under the laws of the state of [State].
6. Miscellaneous Provisions
6.1. Amendments – Any changes to this Agreement must be in writing and signed by both parties.
6.2. Severability – If any provision is deemed invalid, the remaining provisions shall remain in full force and effect.
6.3. Waiver – Failure to enforce any provision shall not constitute a waiver of future enforcement.
6.4. Entire Agreement – This Agreement represents the complete understanding between the parties and supersedes all prior agreements.
7. Notices
All notices required under this Agreement shall be in writing and sent via certified mail, email, or in person to the following addresses:
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Lender:
[Lender’s Name]
[Lender’s Address]
[Email Address] -
Borrower:
[Borrower’s Name]
[Borrower’s Address]
[Email Address]
8. Signatures
IN WITNESS WHEREOF, the parties have executed this Car Loan Security Agreement as of the date first written above.
Lender (Secured Party):
By: ___________________________
Title: __________________________
Date: __________________________
Borrower (Debtor):
By: ___________________________
Title: __________________________
Date: __________________________