Our printable installment sale template may be used when the seller will be accepting monthly payments when selling goods or equipment.
We have made provision on our sample document to have a lien recorded on the goods. You may choose not to record a lien, although that carries a risk should the buyer go bankrupt.
The Different Types of Installment Agreement Forms. There are lots of these types of forms that just about any person or company can use to guarantee that both parties are in agreement as to how the installment plan and method is going to go.
It is also important to review the guidelines regarding permissible interest rates, late payment fees, repossession upon default etc.
Note: Specific free installment sale agreements are available for selling a vehicle, motorcycle or boat.
Please refer to our main page featuring various Bill of Sale forms for links to those legal documents and additional legal guidelines to assist you in compiling your agreements.
1. THE PARTIES TO THIS INSTALLMENT SALE AND SECURITY AGREEMENT ARE:
1.1 THE SELLER:
Identity / Social Security or Other number (Specify):
1.2 THE BUYER:
Identity / Social Security or Other number (Specify):
The parties choose the above stated addresses as their physical addresses at which legal proceedings may be instituted.
2. DESCRIPTION OF THE GOODS BEING SOLD:
3. PURCHASE PRICE AND PAYMENT TERMS:
Purchase Price: $__________ (__________________________dollars)
Less Deposit Paid: $_________ (__________________________dollars)
Outstanding Balance: $________ (__________________________dollars)
Interest Charges: Interest shall accrue at the rate of _____percent (_____%) per year on any unpaid balance.
Late Payment Fees: If payment is not made within _____days as stipulated in the payment terms the Buyer shall pay an additional late payment fee in the amount of $_______ (________________dollars).
The Buyer will pay to the Seller ___________payments of $________ (_____________________dollars) each at uninterrupted monthly intervals on the ________day of each month, starting on the ___________day of ___________________20____ until the Outstanding Balance and accrued interest is paid in full. All payments shall first be applied to outstanding late payment fees, then to accrued interest and thereafter to the Outstanding Balance.
4.1 The Buyer may prepay the Outstanding Balance in full or in part at any time without premium or penalty. All prepayments shall first be applied to outstanding late fees, then to accrued interest and thereafter to the Outstanding Balance.
5. PLACE OF PAYMENT:
5.1 Payment in terms of this installment sale agreement shall be made at the above stated address of the Seller or at such place as may be designated from time to time in writing by the Seller or assignee of this agreement. For ease of payment the Buyer may exercise the option to effect payment by direct deposit or electronic transfer of funds into the account of Seller as specified in writing.
6. ACCELERATION OF DEBT UPON DEFAULT:
6.1 If the Buyer fails to make any payment when due for whatever reason and the Seller provides notice of such failure, the Buyer must effect payment of the amount due within ____ days, failing which the Seller can demand immediate payment of the entire outstanding balance and accrued interest.
7. COLLECTION FEES:
7.1 In the event of default this installment sale and security agreement may be turned over for collection and the Buyer agrees to pay all reasonable legal fees, collection and enforcement charges to the extent permissible by law, in addition to other amounts due.
8.1 The Seller guarantees that he/she is the true and lawful owner of the above described Goods and that it is free of all encumbrances, liens and any and all legal claims.
9.1 The Seller warrants that no person shall have legal claim against the Buyer for the removal of the Goods hereby sold and the Seller warrants to indemnify and hold harmless the Buyer from any and all adverse claims arising from the sale of the Goods.
10. NO WARRANTIES OR GUARANTEES:
10.1 The Seller or his/her agent gives no warranty or guarantee other than those specified in 8.1 and 9.1
11.1 The Goods are sold 'As-Is' and the Seller shall not be liable for any defects, patent, latent or otherwise.
11.2 The Buyer admits to having inspected the Goods to his/her satisfaction and that no guarantees or warranties were expressed or implied by the Seller or his/her agent regarding the condition, quality or fitness for any purpose of the Goods.
12. SECURITY INTEREST:
12.1 A lien shall be recorded on the goods and the Seller shall retain a perfected security interest in the goods until all installment payments and all other amounts under this agreement have been paid in full.
12.2 The Buyer shall effect at his/her cost the filing of a financing statement at the relevant public offices within 5 (five) days of signing this agreement and shall furnish proof of such filing to the Seller.
13. TRANSFER OF OWNERSHIP AND COSTS:
13.1 The Seller shall issue a lien release within 5 (five) days of receiving full and final payment of all monies due under this agreement, whereafter the onus shall be on the Buyer to file the lien release with the relevant public offices.
14. POSSESSION AND TRANSFER OF RISK:
14.1 The risk passes to the Buyer once the Buyer or his/her agent takes possession of the Goods.
14.2 Loss of or damage to the goods will not release the Buyer from his/her obligations under the terms of this agreement.
14.3 The Buyer shall insure the goods against all risks with a recognized insurance company acceptable to the Seller at his/her cost. The Buyer shall furnish proof of such an insurance policy to the Seller and assign to the Seller all rights to receive proceeds of insurance to the value of the Outstanding Balance.
14.4 The Buyer shall effect all maintenance and repairs to the goods at his/her cost where necessary in order to keep it in the condition at which it was sold and any improvements to or accessories placed on the goods shall become inherent components thereof.
14.5 The Buyer will keep the goods free from any other liens or security interests.
14.6 The Buyer agrees not to sell, dispose of or transfer the rights to the goods to another party without the prior written consent of the Seller until such time as all monies have been paid under this agreement.
14.7 The Buyer shall not affix the goods to any other goods or property without prior written consent by the Seller.
15.1 The Buyer may not assign his obligations under this agreement to a third party without prior written permission by the Seller.
15.2 The Seller may assign this installment sale and security agreement to a third party without notice to the Buyer and the Buyer agrees to remain bound to any subsequent holder of this agreement under the terms of this agreement.
16.1 Upon default by the Buyer under the terms of this agreement and within 3 (three) days of demand by the Seller, the Buyer shall deliver the goods to the Seller, failing which the Seller my enter any premises where the goods are being held with or without legal process and take possession of the goods.
16.2 The Seller shall then have the right to sell the goods in any manner which he/she may deem fit and to apply the proceeds to the repayment of monies due under the agreement.
16.3 The Buyer agrees that proceeds from the sale of the goods shall first be applied to repayment of monies due under the agreement and that any surplus money shall be transferred to the Buyer.
16.4 The Buyer agrees that he/she shall remain liable for any shortfall if the proceeds from the sale of the goods are not sufficient to repay all monies due under the agreement.
16.5 No relaxation, indulgence, waiver, release or concession extended to the Buyer by the Seller and no delay or omission in the enforcement or exercising of the Seller's right under the agreement shall affect the rights of the Seller under this agreement.
17. JOINT AND SEVERAL LIABILITY:
17.1 Should there be more than one signatory to this installment sale and security agreement, their obligations shall be joint and several and each specifically agree to be bound by all the provisions as set out in this agreement.
18. BUYER'S WAIVER:
18.1 The Buyer waives demand and presentment for payment, notice of non-payment, off-set, protest and notice of protest and agrees to remain fully bound until all monies are paid in full.
18.2 The Buyer waives all defenses based on suretyship or impairment of collateral.
19. SELLER'S INDULGENCE:
19.1 No relaxation, indulgence, waiver, release or concession of any terms of this agreement by the Seller on one occasion shall be binding unless in writing and if granted shall not be applicable to any other or future occasion.
20. BINDING EFFECT:
20.1 This agreement shall be binding upon and accrue to the benefit of the parties, their successors, legal representatives and assigns.
21.1 Where appropriate words signifying one gender shall include the others and words signifying the singular shall include the plural and vice versa.
21.2 Paragraph headings are for convenience of reference only and are not intended to have any effect in the interpretation or determining of rights or obligations under this agreement.
21.3 Should any provision of this agreement be judged by an appropriate court of law as invalid, it shall not affect any of the remaining provisions whatsoever.
22.1 The parties consent to the jurisdiction of the magistrate's
(other ________________) court for the district of ______________________
Signed at this location: ______________________
on this ______day of _________________20____
This installment sale agreement was acknowledged before me
on this ______day of ____________________20____
Signature of Notary Public ______________________
Full legal Name ______________________________
My commission expires ________________________
State of ________________________
County of ______________________
Installment Sale - Related Information and More Free Legal Forms:
Bill of Sale Guidelines - Additional information on how to record a lien, permissible interest rates that you may charge and the consequences of defaulting on an agreement.
Lien Release Form - To issue to the buyer of your goods upon full and final settlement of your installment sale.
Promissory Notes - For more information on unsecured loans.
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LOAN AGREEMENT AND PROMISSORY NOTE
THIS LOAN AGREEMENT AND PROMISSORY NOTE (the “Note”), is made this 1st day of July, 2010, by and among Wharton Capital, LLC (hereinafter, known as “LENDER”) and SANGUINE CORP, a Corporation organized under the laws of the State of Nevada (hereinafter, known as “BORROWER”). BORROWER and LENDER shall collectively be known herein as “the Parties”. In determining the rights and duties of the Parties under this Loan Agreement, the entire document must be read as a whole.
FOR VALUE RECEIVED, BORROWER promises to repay to the order of LENDER, the sum of $27,500.00 dollars together with interest thereon at a rate of 7 percent (%) per annum.
ADDITIONAL LOAN TERMS
The BORROWER and LENDER, hereby further set forth their rights and obligations to one another under this Loan Agreement and Promissory Note and agree to be legal bound as follows:
Principal Loan Amount $27,500.00
Loan Repayment Terms.
BORROWER will make payment(s) to LENDER in three (3) separate payments according to the following schedule:
$7,500.00 on or before October 1, 2010,
$7,500.00 on or before November 25, 2010,
$7,500.00 on or before January 15, 2011,
$5000.00 on or before March 1, 2011,
Final interest payment to be calculated as of final payment and due immediately thereto.
As collateral for repayment of Loan Amount, BORROWER agrees to put forth a total of 250,000 Sanguine Corp (SGUI) common shares. Lender understands that these shares are restricted under Rule 144 of the Securities Act of 1933. Upon default of any of the payments as defined in paragraph “A” above, LENDER may demand release of all “Collateral Shares” to satisfy Note.
Method of Loan Payment.
The BORROWER shall make all payments called for under this loan agreement by sending check or other negotiable instrument made payable to the following individual or entity at the address indicated:
Sherman Oaks, CA 91403
If LENDER gives written notice to BORROWER that a different address shall be used for making payments under this loan agreement, BORROWER shall use the new address so given by LENDER.
Payment Agreement Forms Free Printable
The occurrence of any of the following events shall constitute a Default by the BORROWER of the terms of this loan agreement and promissory note:
BORROWER’S failure to pay any amount due as principal or interest on the date required under this loan agreement.
BORROWER seeks an order of relief under the Federal Bankruptcy laws.
A federal tax lien is filed against the assets of BORROWER.
Additional Provisions Regarding Default.
Addressee and Address to which LENDER is to give BORROWER written notice of default:
If BORROWER gives written notice to LENDER that a different address shall be used, LENDER shall use that address for giving notice of default (or any other notice called for herein) to BORROWER.
Free Installment Loan Agreement Template
Cure of Default. Upon default, LENDER shall give BORROWER written notice of default. Mailing of written notice by LENDER to BORROWER via U.S. Postal Service Certified Mail shall constitute prima facie evidence of delivery. BORROWER shall have 15 days after receipt of written notice of default from LENDER to cure said default. In the case of default due solely to BORROWER’S failure to make timely payment as called for in this loan agreement, BORROWER may cure the default by either: (i) making full payment of any principal and accrued interest (including interest on these amounts) whose payment to LENDER is overdue under the loan agreement and, also, the late-payment penalty described below; or (ii) release collateral to LENDER as described in paragraph B “Collateral”, above.
Penalty for Late Payment. There shall also be imposed upon BORROWER a 2% penalty for any late payment computed upon the amount of any principal and accrued interest whose payment to
LENDER is overdue under this loan agreement and for which LENDER has delivered a notice of default to BORROWER
Indemnification of Attorneys Fees and Out-of-Pocket Costs. Should any party materially breach this agreement, the non-breaching party shall be indemnified by the breaching party for its reasonable attorneys fees and out-of-pocket costs which in any way relate to, or were precipitated by, the breach of this agreement. The term “out-of-pocket costs”, as used herein, shall not include lost profits. A default by BORROWER which is not cured within 15 days after receiving a written notice of default from LENDER constitutes a material breach of this agreement by BORROWER.
Parties That Are Not Individuals.
If any Party to this agreement is other than an individual (i.e., a corporation, a Limited Liability Company, a Partnership, or a Trust), said Party, and the individual signing on behalf of said Party, hereby represents and warrants that all steps and actions have been taken under the entity’s governing instruments to authorize the entry into this Loan Agreement. Breach of any representation contained in this paragraph is considered a material breach of the Loan Agreement.
This Agreement, including the attachments mentioned in the body as incorporated by reference, sets forth the entire agreement between the Parties with regard to the subject matter hereof. All prior agreements, representations and warranties, express or implied, oral or written, with respect to the subject matter hereof, are superseded by this agreement. This is an integrated agreement.
In the event any provision of this Agreement is deemed to be void, invalid, or unenforceable, that provision shall be severed from the remainder of this Agreement so as not to cause the invalidity or unenforceability of the remainder of this Agreement. All remaining provisions of this Agreement shall then continue in full force and effect. If any provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope and breadth permitted by law.
Except as otherwise provided in this document, this agreement may be modified, superseded, or voided only upon the written and signed agreement of the Parties. Further, the physical destruction or loss of this document shall not be construed as a modification or termination of the agreement contained herein.
Exclusive Jurisdiction for Suit in Case of Breach.
The Parties, by entering into this agreement, submit to jurisdiction in State of Nevada for adjudication of any disputes and/or claims between the Parties under this agreement. Furthermore, the Parties hereby agree that the courts of State of Pennsylvania shall have exclusive jurisdiction over any disputes between the parties relative to this agreement, whether said disputes sounds in contract, tort, or other areas of the law.
This Agreement shall be interpreted under, and governed by, the laws of the State of Nevada.
IN WITNESS WHEREOF and acknowledging acceptance and agreement of the foregoing, BORROWER and LENDER affix their signatures hereto.
Sanguine Corp Wharton Capital
Dated: July 1, 2010
Dated: July 1, 2010