Bill of Sale for an Automobile with a Promissory Note
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Bill of Sale for an Automobile with a Promissory Note

Bill of Sale for an Automobile with a Promissory Note

This bill of sale is between (the "Buyer"), of , , ,  and (the "Seller"), , , , .

The parties agree as follows:

1. SALE OF VEHICLE.

The Seller hereby sells to the Buyer and the Buyer purchases from the Seller, the following motor vehicle (the "Vehicle"):

  • Location: 
  • Make:
  • Model:
  • Body Type: 
  • Year:
  • Vehicle I.D. No. (VIN):

2. PURCHASE PRICE.

The total purchase price to be paid by the Buyer to the Seller for the Vehicle is $ (the "Purchase Price"), which will consist of the following components:

  • (a) a down payment of $, which must be delivered to the Seller on or before the effective date of this bill of sale, as defined in section 910;
  • (b) an additional payment of $, due on the Delivery Date (as defined in section 67 below); and
  • (c) a balance of $, which will be financed by the Seller under a promissory note dated (the "Note").

3. SELLER'S REPRESENTATIONS.

The Seller represents to the Buyer that:

  • (a) the Seller has good and marketable title to the Vehicle, with full authority to enter into the transactions contemplated by this bill of sale and to sell the Vehicle in accordance with this bill of sale;
  • (b) the Vehicle is free of all encumbrances, liabilities, and adverse claims., except held by , and held by , and held by , and held by , and held by .
  • (c) the Seller will fully indemnify the Buyer from any lawful adverse claim to the Vehicle. except for any claim of   or   or   or or named in (b) above; and
  • (d) to the best of the Seller's knowledge, the information disclosed in this bill of sale about the Vehicle and its title are correct in all material respects.

4. BUYER'S REPRESENTATIONS.

The individual signing this agreement on behalf of the Buyer represents to the Seller that he or she has the power and authority to complete this transaction on behalf of the Buyer.

45. NO OTHER REPRESENTATIONS.

Except for the representations provided in section 3, the Buyer acknowledges that the Vehicle is being sold "as is," without warranty, whether express or implied, about the condition of the Vehicle. The Buyer must satisfy itself as to what is offered for sale, and by purchasing will be held to have satisfied itself that the Vehicle is satisfactory in all respects. Any defects and all repairs are the sole responsibility of the Buyer. The Seller neither assumes, nor authorizes any other person or entity to assume on its behalf, any liability in connection with the sale of the Vehicle. The Seller's disclaimers of warranty do not affect the terms or applicability of any warranty from the Vehicle's manufacturer that may be applicable to the Vehicle.

56. INSPECTION.  

The Vehicle has not been inspected by an independent and licensed mechanic within the last month. A copy of that inspection report is attached to this bill of sale.

To the best of its knowledge, the Seller believes that the Vehicle is being sold in good operating condition, except for the following defects: .

 67. DELIVERY OF VEHICLE. 

The Seller shall deliver the Vehicle, and the Buyer shall take possession of the Vehicle, at the Seller's address as listed above, on or before  (the "Delivery Date"). The Seller shall ensure that the Vehicle is delivered in the same condition as the Buyer's last inspection (or, if no inspection was conducted, as of the effective date of this bill of sale). The Buyer, either itself or through a third party, shall appear at the Seller's address during standard business hours on the Delivery Date to remove the Vehicle. If the Buyer does not appear at the Seller's address on the Delivery Date to remove the Vehicle, the risk of loss of the Vehicle passes to the Buyer.

 7 8. CONVEYANCE OF TITLE.

The Seller shall convey title to the Vehicle to the Buyer when that Vehicle is delivered to the Buyer. The Seller shall execute all documents presented by the Buyer that are necessary to finalize transfer of title and registration of the Vehicle to the Buyer.

89. CANCELLATION OF INSURANCE AND TAGS.

Unless prohibited by applicable law, the Seller hereby acknowledges that it will cancel any insurance coverage, license, tags, plates, or registration maintained by the Seller on the Vehicle when the Vehicle is delivered and accepted by the Buyer.

910. EFFECTIVENESS.

This bill of sale will become effective when all parties have signed it. The date this bill of sale is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this bill of sale.


1011. ADDITIONAL TERMS OF SALE.

[SIGNATURE PAGE FOLLOWS]

Each party is signing this bill of sale on the date stated opposite that party's signature. 



Date: _________________


By:__________________________________________
Name:
Title: Phone No.: 
Phone No.: 



Date: _________________


By:__________________________________________
Name:
Title: Phone No.: 
Phone No.: 


Witnessed By:____________________________________________
ACKNOWLEDGEMENT 

Date:_____________________
OF NOTARY PUBLIC
Name:___________________________________________________


Address:_________________________________________________ 
STATE OF __________________________


COUNTY OF ________________________

Subscribed and sworn to before me this __________day of ____________, 20_____, at ___________, __________________.
_________________________________________
Signature of Notary Public
Name of Notary Public:  ____________________________ (SEAL)
Notary Public, State of ______________________________
My commission expires:  ___________________________







[PAGE BREAK HERE]

ODOMETER DISCLOSURE STATEMENT
Federal law (and state law, if applicable) requires that you state the mileage on transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

The Seller hereby discloses to the Buyer that at the time of the transfer, the odometer read miles.   To the best of the Seller's knowledge, that odometer reading reflects the actual mileage of the Vehicle. 

The odometer reading reflects the amount of mileage in excess of its mechanical limits.I hereby certify that the odometer reading is NOT the actual mileage. WARNING: ODOMETER DISCREPANCY

  • Make: 
  • Model: 
  • Body Type: 
  • Year: 
  • Vehicle I.D. No. (VIN): 
Seller's Information: Buyer's Information:

Name:

Name: 
Address:  Address: 
City:  City: 
State:  State: 
ZIP Code:  ZIP Code: 


Signatures:

_______________________________________________

_______________________________________________
Seller Date


_______________________________________________


_______________________________________________
Buyer Date
Witnessed By:___________________________________________ Date:_____________________
Name:__________________________________________________

Address:_______________________________________________ 

[PAGE BREAK HERE]

SECURED PROMISSORY NOTE
(INSTALLMENT WITH BALLOON FINAL PAYMENT)

$  

On or before , for value received, the undersigned (the "Borrower") promises to pay to the order of (the "Holder"), in the manner and at the place provided below, the principal sum of $ .

1. PAYMENT.

All payments of principal and interest under this note will be made in lawful money of the United States of America, without offset, deduction, or counterclaim, to an account designated by the Holder in writing at least days after the effective date of this note or, if this designation is not made, by check mailed to the Holder at , , , , , , , , or at such other place as the Holder may designate in writing.

2. INSTALLMENT PAYMENTS; FINAL PAYMENT.

The Borrower shall pay the principal and interest of this note in consecutive monthly installments of $, beginning on or before and continuing on the day of each month, together with a final payment on of an amount equal to all sums remaining unpaid under this note. Each payment will be credited first to interest and then to principal, and interest will cease to accrue on any principal so paid. Acceptance by the Holder of any payment differing from the designated installment payment listed above does not relieve the Borrower of the obligation to honor the requirements of this note.

3. INTEREST.

Interest on the unpaid principal balance of this note is payable from the date of this note until this note is paid in full, at the rate of % per annum, or the maximum amount allowed by applicable law, whichever is less. Accrued interest will be computed on the basis of a 365-day or 366-day year, as the case may be, based on the actual number of days elapsed in the period in which it accrues.

4. PREPAYMENT.

The Borrower may prepay this note, in whole or in part, at any time before maturity without penalty or premium. Any partial prepayment will be credited first to accrued interest, then to principal. No prepayment extends or postpones the maturity date of this note.

5. SECURITY FOR PAYMENT.

This note is secured by the vehicle of the Borrower (the "Vehicle") described in the bill of sale dated between the Borrower and (the "Bill of Sale"). If an Event of Default (defined below) occurs, the Holder will have the rights set forth in the Bill of Sale and as described below.

6. EVENTS OF DEFAULT.

Each of the following constitutes an "Event of Default" under this note:

  • (a) the Borrower's failure to make any payment when due under the terms of this note, including the final balloon payment due under this note at maturity;
  • (b) the filing of any voluntary or involuntary petition in bankruptcy by or regarding the Borrower or the initiation of any proceeding under bankruptcy or insolvency laws against the Borrower;
  • (c) an assignment made by the Borrower for the benefit of creditors; or
  • (d) the appointment of a receiver, custodian, trustee, or similar party to take possession of the Borrower's assets or property.; or
  • (e) the death of the Borrower.

7. ACCELERATION; REMEDIES ON DEFAULT.

If any Event of Default occurs, all principal and other amounts owed under this note will become immediately due and payable without any action by the Holder, the Borrower, or any other person. The Holder, in addition to any rights and remedies available to the Holder under this note, may, in its sole discretion, pursue any legal or equitable remedies available to it under applicable law or in equity, including taking any of the following actions:

  • (a) personally, or by agents or attorneys (in compliance with applicable law) take immediate possession of the Vehicle. To that end, the Holder may pursue the Vehicle where it may be found, and enter the Borrower's premises, with or without notice, demand, process of law, or legal procedure if this can be done without breach of the peace. If the premises on which any part of the Vehicle is located are not under the Borrower's direct control, the Borrower will exercise its best efforts to ensure that the Holder is promptly provided right of access to those premises. To the extent that the Borrower's consent would otherwise be required before a right of access could be granted, the Borrower hereby irrevocably grants that consent;
  • (b) require the Borrower to make the Vehicle available to the Holder at a place to be designated by the Holder that is reasonably convenient to both parties (it being acknowledged that the Borrower's premises are reasonably convenient to the Borrower);
  • (c) sell, lease, or dispose of the Vehicle or any part of it in any manner permitted by applicable law or by contract; and
  • (d) exercise all rights and remedies of a secured party under applicable law.

8. WAIVER OF PRESENTMENT; DEMAND.

The Borrower hereby waives presentment, demand, notice of dishonor, notice of default or delinquency, notice of protest and nonpayment, notice of costs, expenses, or losses and interest on those, notice of interest on interest and late charges, and diligence in taking any action to collect any sums owing under this note, including (to the extent permitted by law) waiving the pleading of any statute of limitations as a defense to any demand against the undersigned. Acceptance by the Holder or any other holder of this note of any payment differing from the designated payments listed above does not relieve the undersigned of the obligation to honor the requirements of this note.

9. GOVERNING LAW.

  • (a) Choice of Law. The laws of the state of govern this note (without giving effect to its conflicts of law principles).
  • (b) Choice of Forum. Both parties consent to the personal jurisdiction of the state and federal courts in , .

10. COLLECTION COSTS AND ATTORNEYS' FEES.

The Borrower shall pay all costs and expenses of the collection of indebtedness evidenced by this note, including reasonable attorneys' fees and court costs in addition to other amounts due, without protest.

11. ASSIGNMENT AND DELEGATION.

  • (a) No Assignment. The Borrower may not assign any of its rights under this note. All voluntary assignments of rights are limited by this subsection.
  • (b) No Delegation. The Borrower may not delegate any performance under this note.
  • (c) Enforceability of an Assignment or Delegation. If a purported assignment or purported delegation is made in violation of this section, it is void.

12. SEVERABILITY.

If any one or more of the provisions contained in this note is held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this note, but this note will be construed as if those invalid, illegal, or unenforceable provisions had never been contained in it, unless the deletion of those provisions would result in such a material change so as to cause completion of the transactions contemplated by this note to be unreasonable.



13. NOTICES.

  • (a) Writing; Permitted Delivery Methods. Each party giving or making any notice, request, demand, or other communication required or permitted by this note shall give that notice in writing and use one of the following types of delivery, each of which is a writing for purposes of this note: personal delivery, mail (registered or certified mail, postage prepaid, return-receipt requested), nationally recognized overnight courier (fees prepaid), facsimile, or email.
  • (b) Addresses. A party shall address notices under this section to a party at the following addresses:
  • If to the Borrower:
  • If to the Holder:
  • ,
  • (c) Effectiveness. A notice is effective only if the party giving notice complies with subsections (a) and (b) and if the recipient receives the notice.

14. WAIVER.

No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this note will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.

15. HEADINGS.

The descriptive headings of the sections and subsections of this note are for convenience only, and do not affect this note's construction or interpretation.

[SIGNATURE PAGE FOLLOWS]



Each party is signing this note on the date stated opposite that party's signature.



Date: _________________


By:__________________________________________
Name:
Title: Phone No.:
Phone No.:


Date: _________________


By:__________________________________________
Name:
Phone No.: Title:  Phone No.:   Title:
Phone No.: Phone No.: 

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