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Security Agreement
1. Names. This Security Agreement is between __________________________, Borrower, and _________________________, Lender.
2. Grant of Security Interest. Borrower grants to Lender a continuing security interest in the following property (the "Secured Property"), which consists of:
[X] The vehicle being sold to the Borrower and in possession of the Borrower is identified as a:
Vehicle make: _____________________
Vehicle Year: ______________________
Vehicle Identification Number: ___________________________________,
as listed in attached Attachment 1 of this security agreement.
3. Security for Promissory Note. Borrower is granting this security interest to secure performance of a promissory note dated ______________________ that Borrower executed in favor of Lender. The promissory note obligates Borrower to pay Lender ________________________________ with interest at the rate of _____% a year, on the terms stated in the promissory note.
4. Use and Care of the Secured Property. Until the promissory note is fully paid, Borrower agrees to:
A.
Keep full coverage insurance on the Secured Property at all times, making
Lender the payee and beneficiary of all interest in all claims and never driving
the vehicle outside the boundaries of the
B. Deliver to Lender a copy of the insurance policy insuring the Secured Property and provide monthly proof to the Lender or the Lender’s assignee that Borrower has paid the premiums on the policy.
C. Maintain the Secured Property in good repair.
D. Not sell, transfer or release the Secured Property unless Lender consents and releases all claim to the security in question.
E. Pay all related taxes and fees on the Secured Property as they become due.
F. Allow Lender to inspect the Secured Property at any reasonable time.
5. Borrower's Default. If Borrower is more than ___ days late in making any payment required by the promissory note or if Borrower fails to correct any violations of paragraph 5 of this Security Agreement within 24 hours of receiving written or verbal notice from Lender, Borrower will be in default.
6. Lender's Rights. If Borrower is in default, Lender may exercise the remedies contained in the Uniform Commercial Code for the State of _____________________ and any other remedies legally available to Lender. Lender may, for example:
A. Remove the Secured Property from the place where it is then located.
B. Require Borrower to make the Secured Property available to Lender at a place designated by Lender that is reasonably convenient to Borrower and Lender.
C. Sell, lease or otherwise dispose of the Secured Property.
7. Notice to Borrower
Lender will give Borrower at least ten days notice of when and where the Secured Property will be sold, leased or otherwise disposed of. Any notice required by this paragraph or by statute will be deemed given to Borrower if sent by first-class mail to Borrower at the following address:
________________________________________________________________
8. Entire Agreement. This is the entire agreement between the parties. It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings.
9. Successors and Assignees. This agreement binds and benefits the heirs, successors and assignees of the Lender. This agreement cannot be assigned by the Borrower without the written permission of the Lender.
10. Governing Law. This agreement will be governed by and construed in accordance with the laws of the state of _____________________.
11. Counterparts. The parties may sign several identical counterparts of this agreement. Any fully signed counterpart shall be treated as an original.
12. Modification. This agreement may be modified only by a writing signed by the party against whom such modification is sought to be enforced.
13. Waiver. If one party waives any term or provision of this agreement at any time, that waiver will only be effective for the specific instance and specific purpose for which the waiver was given. If either party fails to exercise or delays exercising any of its rights or remedies under this agreement, that party retains the right to enforce that term or provision at a later time.
14. Severability. If any court determines that any provision of this agreement is invalid or unenforceable, any invalidity or unenforceability will affect only that provision and will not make any other provision of this agreement invalid or unenforceable and such provision shall be modified, amended or limited only to the extent necessary to render it valid and enforceable.
Dated: ________________________
Lender
Name: ___________________ , a (an) ___________________
By: __________________________
Printed Name: ___________________________________
Address: _________________________________________
Borrower
Name(s) of Borrower(s): _______________________________________________
By: ________________________
Printed Name: ___________________
Address: _____________________________________________________
By: ________________________
Printed Name: _________________________
Address: ______________________________________________________
Attachment Number 1
1. Names. This attachment is made by _________________________________, Borrower, and ________________________________________________, Lender.
2. Terms of Attachment. We agree that the property covered by paragraph 2 of our Security Agreement dated ________________________ includes the following:
Vehicle Make: ______________________
Vehicle Model: _______________________
Vehicle Year: ________________________
Vehicle identification Number: ________________________________
Current
Lien holder named as: ____________________________________
Lender
By: __________________________
Printed Name: ________________________
Address:
________________________________
Borrower(S)
By: __________________________ By: _____________________________
Printed Name: _____________________ Printed Name: _____________________
Address: _________________________ Address: _________________________
_________________________________ ________________________________