COLLATERAL VEHICLE LOAN AGREEMENT
This Collateral Vehicle Loan Agreement ("Agreement") is made and entered into as of the 1st of December, 2054, by and between:
I. Lender
[Your Company Name]
[Your Company Address]
[Your Company Email]
[Your Company Number]
II. Borrower
Johan Green
Grand Rapids, MI 49501
johan@you.mail
(616) 555-9876
III. Vehicle Information
Make | Model | Year | VIN | Odometer Reading |
|---|
Toyota | Camry XLE | 2021 | 4T1BF1FK6LU123456 | 35,000 miles |
IV. Loan Amount
The total loan amount being borrowed is $15,000, to be repaid under the terms and conditions outlined in this Agreement. This loan will be used to finance the purchase of the vehicle mentioned above.
V. Loan Term
The term of the loan shall be 36 months, beginning on January 1, 2055, and ending on December 31, 2057. The Borrower agrees to make monthly payments as detailed in the Repayment Schedule section.
VI. Interest Rate
The interest rate for this loan shall be 5.5% per annum, fixed for the term of the loan. The Borrower acknowledges that the interest will accrue on the outstanding balance.
VII. Repayment Schedule
The Borrower agrees to make monthly payments of $450.00 starting on January 15, 2055, until the loan is fully paid off. Payments are due on the 15th of each month, and a late fee of $25 will be charged if the payment is received after the due date. The final payment will be due on December 15, 2057.
VIII. Collateral
The Borrower agrees to use the vehicle described above as collateral for the loan. If the Borrower defaults on the loan, the Lender has the right to take possession of the vehicle and sell it to recover the outstanding loan balance. The Borrower will bear any costs associated with the repossession and sale of the vehicle.
IX. Default
In the event of default by the Borrower, the Lender has the right to repossess the collateral vehicle. Default is defined as failure to make payments for more than 30 days after the due date. Upon default, the Lender may initiate legal proceedings, including repossession, and the Borrower will be responsible for any fees associated with such actions.
X. Insurance Requirement
The Borrower agrees to maintain full insurance coverage on the vehicle for the duration of the loan. The insurance policy must include comprehensive and collision coverage, naming [Your Company Name] as the loss payee. Proof of insurance must be provided to the Lender upon request. If the Borrower’s insurance is canceled, the Lender may procure insurance at the Borrower's expense.
XI. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of Michigan, without regard to its conflict of laws principles.
XII. Signatures
By signing below, both parties acknowledge and agree to the terms and conditions of this Agreement.
Lender's Details | Borrower's Details |
|---|
 [Your Name]
| Zena Frami |
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