FORM No. 1202--Purchase Money Security Agreement
1202
▇▇ ▇▇▇▇▇▇▇-▇▇▇▇ Law Publishing Co., ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇
PURCHASE MONEY SECURITY AGREEMENT
Dated --------------------, 19--
Customer(s)---------------------------------------------------------------------
(Hereinafter called buyer)
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(Buyer's residence or other address specified by him)
Creditor(s)---------------------------------------------------------------------
(Hereinafter called seller)
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(Seller's place of business)
Section 1. The above named buyer (and if more than one, then all buyers
jointly and severally), hereinafter sometimes called the debtor, hereby
purchases from the above named seller, and seller sells to the buyer the
following described goods:
together with all accessories, additions, replacements, parts and accessions now
or hereafter affixed to or used in connection therewith as well as the proceeds
thereof (all herein collectively called "collateral"), at and for the sum of
$--------- which buyer promises to pay to seller's order at the following times:
$--------- on the signing hereof (receipt of which hereby is acknowledged by
seller) and the balance, including interest, in monthly installments of not less
than $--------- each, payable on the -----day of each month hereafter beginning
with the month of -------------, 19--, and continuing until said sum together
with the interest next mentioned is fully paid; all unpaid principal shall bear
interest at the rate of ----% per annum from date hereof until paid; interest
payable monthly, the same being included in the minimum monthly payments above
required.
All or any part of said price may be paid in advance at any time. If any payment
is not paid when due and such default continues for a period of 10 days or
longer, seller shall be entitled to collect, and buyer agrees to pay, in
addition to the foregoing, seller's collection costs, including reasonable
attorney's fees. To secure buyer's performance hereof buyer grants to seller a
security interest in said collateral and in all thereof.
Section 2. The buyer hereby warrants and covenants that:
2.1 The collateral is primarily for buyer's [ ] personal, family,
household or agricultural purposes, [ ] business or commercial, other than
agricultural, purposes (indicate which; see important notice below).
2.2 At all times the collateral will be kept at
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(No. and Street) (City or Town) (County)
Oregon, and shall not be removed from said location, in whole or in part, until
such time as seller's written consent thereto shall have been obtained.
2.3 If the collateral is bought or used primarily for business or
commercial, other than agricultural, purposes, the buyer's principal place of
business in Oregon is that shown at the beginning of this agreement; buyer also
has places of business in the following other Oregon counties:
--------------------------------------; if buyer has no place of business in
Oregon but resides therein, the county in which buyer resides is
------------------ County in said state.
2.4 If buyer is a corporation, it was organized under the laws of the
State of ---------- ---------------, its principal office and place of business
is located at -------------------------------- and its principal office and
place of business in Oregon is located at the place shown at the beginning of
this agreement.
2.5 If the collateral is or is to become attached to real estate, a
description of the real estate is:
in ----------------- County, Oregon, and buyer will on demand furnish the seller
with disclaimers or subordination agreements in form acceptable to the seller,
signed by all persons whose interests are or may be prior to the seller's
interest.
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Section 3. SPECIAL TERMS AND CONDITIONS:
With reference to the above described goods, there are no warranties of
merchantability, express or implied, and none as to their fitness for any
purpose except as may be agreed upon between the parties in a writing of even
date.
This agreement is subject to the additional provisions set forth on the
reverse hereof, the same being incorporated herein by reference. The buyer
acknowledges receipt of a copy of this agreement.
IN WITNESS WHEREOF, the buyer and the seller have executed this
agreement in duplicate on the date first above mentioned.
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(Seller)
By------------------------------------------------------------------------------
Address-------------------------------------------------------------------------
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(Signature of Buyer)
IMPORTANT NOTICE: If the above goods are primarily for buyer's personal, family,
household or agricultural purposes, and the seller is a creditor as defined in
the Truth-in- Lending Act and Regulation Z, seller MUST comply with the Act and
Regulation by making required disclosures; for this purpose, use ▇▇▇▇▇▇▇-▇▇▇▇
Form No. 1311 or equivalent. If compliance with the Act not required, disregard
this notice.
NOTE: This form not suitable for use in retail installment sales.
The following ▇▇▇▇▇▇▇-▇▇▇▇ forms of such contracts are
available: No. 1204 Motor Vehicles; No. 1205 Consumer Goods;
No. 1227 Consumer Goods (short form); No. 1210 Goods and
Services Purchased for Personal, Family, Household or
Agricultural Purposes.
S-N Form No. 1202
ADDITIONAL PROVISIONS
Section 4. The parties hereto agree:
4.1 Title to the collateral is retained by seller and shall not pass to
buyer until all sums herein agreed to be paid shall have been paid in cash; any
equipment, repairs or accessories placed upon or attached to said collateral
shall become a component part thereof as soon as installed or attached and title
thereto shall be vested in seller forthwith and included under the terms of this
contract.
4.2 Buyer acknowledges receipt and delivery of said collateral in good
condition and accepts the same as is; buyer agrees to permit seller to examine
said collateral at any time, to maintain the same in good condition and repair;
to house and protect the same against the elements; not to permit the same to
become subject to attachment, execution or other process; not to create or
permit to be created any lien, security interest or adverse claim of any
character against the same and not to sell, transfer or assign his right, title
or interest in said collateral or this contract without the written consent of
seller; to pay all taxes and assessments of every character levied or assessed
against said collateral, this contract and the indebtedness represented hereby.
4.3 If any motor vehicles are included in the above described
collateral, the seller's security interest is to be noted on each certificate of
title and each of said certificates shall then be deposited with and kept by the
seller.
4.4 Any sums payable by buyer under the terms hereof which are not paid
by him but are paid by seller shall bear interest at the highest lawful rate
until repaid and said sums with interest shall be added to the unpaid balance of
said price and be secured by this contract.
4.5 At all times said collateral is at buyer's risk; should said
collateral suffer any loss, damage or injury, buyer agrees notwithstanding to
purchase and pay for the same in full, according to the terms hereof.
4.6 Buyer agrees at all times to keep said collateral insured against
loss by fire, theft and other hazards as required by the seller, with loss
payable to the parties hereto as their respective interests may appear; all
insurance policies shall be deposited with and held by the seller; buyer hereby
authorizes seller on buyer's behalf to accept payment of any return or unearned
premium and for any loss sustained, to endorse in buyer's name, deposit in his
own name and receive the proceeds of any check or draft made payable to buyer in
connection with any such insurance; if any insurance collected by seller exceeds
the then unpaid balance of this contract, the excess shall be paid forthwith to
the buyer.
4.7 Buyer agrees that seller's acceptance of part or late payments
shall not constitute or be construed as a waiver of time as the essence of this
contract or of any subsequent defaults of buyer hereunder.
4.8 Notices to buyer relative to this contract shall be deemed
delivered if mailed to buyer's address first appearing on the reverse hereof;
five days from date of mailing shall be deemed a reasonable notice.
4.9 Time is of the essence of this contract and if buyer shall default
in his performance of any of the terms or conditions hereof, or in the payment,
when due, of any sum herein required to be paid, or if seller with reasonable
cause deems the collateral in danger of loss, misuse or confiscation or deems
himself insecure, seller, as the secured party in this transaction, shall have
and may exercise each and all of the remedies granted to him by the Uniform
Commercial Code of Oregon and, at his option, may declare all sums then
remaining unpaid immediately due and payable and may require the buyer, as the
debtor herein, to assemble the collateral and make some available to the secured
party at a place to be designated by the secured party which is reasonably
convenient to both parties. Should the holder hereof repossess any of said
collateral and should buyer claim that any property not included in this
contract was contained in or attached to said collateral, he shall so notify the
holder hereof by registered mail within 24 hours after repossession is taken;
buyer's failure so to do shall be a waiver of and bar to any subsequent claim
therefor. In the event suit or action is instituted to collect any sum or sums
of money due hereunder or to replevy said collateral, buyer agrees to pay, in
addition to the statutory costs and disbursement, (1) plaintiff's reasonable
attorney's fees to be fixed by the trial court and (2) on appeal, if any,
similar fees in the appellate court to be fixed by the appellate court.
4.10 The buyer, who is the debtor herein, agrees to join with the
seller, who is the secured partly herein, in executing, filing and doing
whatever may be necessary under applicable law to perfect and continue the
seller's interest in said collateral, all at buyer's expense.
4.11 In construing this contract, the singular includes the plural; the
masculine includes the feminine and the neuter; the buyer is the debtor and the
seller is the secured party within the meaning of Oregon's Uniform Commercial
Code and, the buyer is the customer and the seller is the creditor within the
meaning of the Truth-in-Lending Act and Regulation Z.
IT IS FURTHER UNDERSTOOD AND AGREED that seller may transfer his
interest in this contract, in said collateral and the unpaid balance hereof at
any time, in which event all of the terms herein set forth for the seller's
benefit shall inure to the benefit of seller's assignee and that generally each
right herein given to the seller shall accrue to and may be exercised by
seller's assignee hereof. If seller assigns the contract, seller shall not be
his assignee's agent for the collection of any of the installments of said
purchase price or for any other purpose. In the event of any such assignment,
the buyer will not assert as a defense, counter-claim, set-off or otherwise, any
claim, known or unknown, which the buyer now has or claims against the seller.
A carbon impression of any signature on any copy of this contract shall
be deemed, for all purposes, an original signature.
All the terms and conditions herein contained shall apply and inure to
and bind the heirs, executors, administrators, successors and assigns of the
respective parties hereto, subject, however, to the above restriction against
assignment hereof by the buyer.
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SELLER'S ASSIGNMENT Date----------------------, 19--
FOR VALUE RECEIVED, the undersigned seller does hereby sell, assign and transfer
to --- ------------------------ and assigns (hereinafter called assignee), the
foregoing sales contract, the property covered thereby and all of seller's
right, title and interest therein and authorizes said assignee to endorse and
collect any check or draft payable to the undersigned in connection with said
contract.
WITHOUT RECOURSE
This assignment is made WITHOUT RECOURSE, except as to the following warranties
to-wit: that the said contract is a bona fide one; that said buyer was of legal
age and entirely competent when he executed the same; that the property sold is
accurately described therein; that said property has been delivered into buyer's
possession; that the amount stated in said contract to have been received on the
purchase price of said property was actually paid in cash and/or by merchandise
received in trade at not more than its then cash value; that seller has the full
and complete title to said property subject only to buyer's rights hereunder;
that the amount owing upon said contract at the time of its execution is
correctly stated therein; that buyer has no counterclaims or set-offs against
the same; that there were no representations or warranties made to said buyer
not contained in said contract. Should any of the foregoing warranties be false,
then seller agrees to purchase on demand from said assignee said contract for
the amount of the then unpaid balance on said contract. Should suit or action be
instituted on any of the above warranties, seller agrees to pay (1) assignee's
reasonable attorney's fees to be fixed by the trial court and (2) on appeal, if
any similar fees in the appellate court to be fixed by the appellate court.
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Seller
By------------------------------------------------------------------------------
WITH RECOURSE
The undersigned seller unconditionally GUARANTEES the prompt payment when due,
of all amounts to become due by the terms of said contract and the prompt
payment of all costs (including reasonable attorney's fees both in the trial and
appellate courts as fixed by said courts respectively), incurred in collecting
or attempting to collect the moneys to become due thereon and in enforcing any
right under said contract or under this guaranty and hereby consents that
extensions of the time of payment may be granted to the buyer, either before or
after maturity and that the said contract may be changed in any other particular
without notice and without in any manner releasing the undersigned from
liability. The seller agrees that seller's obligation hereunder shall be
enforcible even though the assignee's right to
enforce the said contact, or any provision thereof, be suspended or impaired by
any statute or otherwise.
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Seller
By------------------------------------------------------------------------------
(Sign under applicable provision and cross out the other one.)