Free Auto Loan Contract Template
Auto Loan Contract
1. Parties to the Contract
This Auto Loan Contract ("Contract") is entered into as of [Date], between [Your Company Name], a [State] corporation with its principal place of business at [Your Company Address], hereinafter referred to as the "Lender". [Borrower's Name], a Limited Liability Company (LLC) organized and existing under the laws of [State], with its principal place of business at [Borrower's Address], hereinafter referred to as the "Borrower".
2. Vehicle Information
The individual or entity that is borrowing, known as the Borrower, readily provides their contract and consent to buy the subsequent vehicle. Along the same lines, the individual or institution that is lending, referred to as the Lender, also offers their commitment to providing financial assistance to obtain the mentioned vehicle:
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Make: Ford
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Model: Transit 350
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Year: 2050
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Vehicle Identification Number (VIN): 1FT8W3DT3NEC96432
3. Loan Terms
The Lender, who is henceforth mentioned in this contract, hereby agrees and gives his consent to provide the Borrower, also mentioned in this contract step by step, with a loan amounting to a total of fifty thousand dollars, officially denoted as the "Loan Amount". The purpose of this loan, as per the understanding reached between both parties, is to finance the purchase of the vehicle which has been referred to and described in the previous sections of this document. It should be noted that this loan amount, by the terms agreed upon, shall bear an annual interest at the rate of 5.75 percent.
4. Repayment Terms
The Borrower shall repay the Loan Amount in 36 (thirty-six) equal consecutive monthly installments of $1,000.00 (one thousand dollars) commencing on November 15, 2050, and continuing on the 15th day of each successive month thereafter until the Loan Amount, plus accrued interest, is fully repaid.
5. Security Interest
To secure the repayment of the Loan Amount and any accrued interest, the Borrower hereby grants to the Lender a security interest in the vehicle described in Section 2 of this Contract. The Borrower agrees not to sell, transfer, or encumber the vehicle until the Loan Amount is fully repaid and all obligations under this Contract are satisfied.
6. Insurance
During the period of this Contract, the individual or entity borrowing must ensure that comprehensive insurance coverage is placed and maintained on the vehicle. As part of the contract, the entity that is lending, needs to be specifically listed on the insurance policy as the recipient of any financial payout, should there be a loss resulting from a covered event. Moreover, the Lender has to be provided with written communication in case of any modification or termination to the insurance policy.
7. Default
If any of the following events were to occur, it would result in the Borrower being declared as in default under the terms outlined in this Contract:
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Failure to make any installment payment when due.
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Breach of any other provision of this Contract.
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Insolvency or bankruptcy of the Borrower.
In the event of default, the Lender may, at its option, declare the entire unpaid balance of the Loan Amount, plus accrued interest, immediately due and payable.
8. Governing Law
The governing and interpretation of this Contract shall be by the laws relevant to [State]. Any differences or disputes that may arise about this Contract, whether they are in relevance to its enactment, validity, termination, interpretation, or otherwise, are to be exclusively attended to through arbitration. This arbitration is to be adapted according to the guidelines put forth by the American Arbitration Association.
9. Entire Agreement
This Contract embodies the complete arrangement between the involved parties regarding the subject in question. It takes precedence and replaces all former and concurrent contracts and understandings, irrespective of whether they are written or verbal, that pertain to the said subject matter.
10. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.
[YOUR NAME]
[DATE SIGNED]
[BORROWER'S NAME]
[DATE SIGNED]
