Repossession Procedure Clause Samples
The Repossession Procedure clause outlines the steps and conditions under which a lender or lessor may reclaim property or assets from a borrower or lessee in the event of default or breach of agreement. Typically, this clause details the notice requirements, the process for accessing the property, and any obligations the borrower has to cooperate with the repossession. Its core function is to provide a clear, enforceable process for recovering assets, thereby protecting the lender’s interests and minimizing disputes over how repossession should occur.
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Repossession Procedure. 2.1 The Lessor shall be entitled to immediately start repossession procedures in any case of failure by the Lessee to voluntarily handback the Vehicle to the Lessor pursuant to the Agreement and these Repossession Rules.
2.2 In case the Lessee fails to fulfil the above obligation, the Lessor shall be entitled to repossess the Vehicle in accordance with the below out-of-court procedure:
2.2.1 The Lessor shall deliver to the Lessee a Notice for the commencement of the out-of-court repossession procedure within a term of 10 (ten) days from the Default as stated in leaseback agreement;
2.2.2 If the Lessee fails to deliver the Vehicle to the Lessor within the above- mentioned term and in compliance with the instructions of the Lessee, the Lessor shall be entitled to authorize any person or authority to repossess the Vehicle wherever it may be and without further notice;
2.2.3 Further to the repossession of the Vehicle, the Lessor shall be entitled to dispose of the Vehicle in compliance with the provisions of the Agreement, and further to its disposal, the Lessor shall notify to the Lessee the final amount due by Lessee to Lessor as well as the term within which such amount must be paid. In case the Lessee does not pay the due obligations within the defined term, the Lessor shall be entitled to collect them through enforcement of the Security Agreement.
Repossession Procedure. 2.1 The Lessor shall be entitled to immediately start repossession procedures in any case of failure by the Lessee to voluntarily handback the Vehicle to the Lessor pursuant to the Agreement and these Repossession Rules.
2.2 In case the Lessee fails to fulfil the above obligation, the Lessor shall be entitled to repossess the Vehicle in accordance with the below out-of-court procedure:
2.2.1 The Lessor shall deliver to the Lessee a Notice for the commencement of the out-of-court repossession procedure within a term of 10 (ten) days from the Default as stated in Leasing agreement;
2.2.2 If the Lessee fails to deliver the Vehicle to the Lessor within the above- mentioned term and in compliance with the instructions of the Lessee, the Lessor shall be entitled to authorize any person or authority to repossess the Vehicle wherever it may be and without further notice;