Common use of Security or collateral Clause in Contracts

Security or collateral. It may be necessary to obtain security or collateral in the form of a mortgage . This possibility should be discussed with the dealer. If security is needed, the dealer needs to be advised that the average cost of document preparation may exceed [*]. These costs include: • a property appraisal • a title search • the cost for having a Deed of Trust or a Mortgage prepared. If the property being used as collateral is a commercial property, please be aware that these costs could be considerably higher due to [*]. [*] If the increase is subject to security or collateral, the Credit Department will put the branch in touch with in-house counsel. When contacted, counsel will know what is required and in most cases can handle internally. Security or collateral could also be in the form of a certificate of deposit or cash. Any other type of security or collateral should be discussed with a Regional Manager.

Security or collateral. It may be necessary to obtain security or collateral in the form of a mortgage . This possibility should be discussed with the dealer. If security is needed, the dealer needs to be advised that the average cost of document preparation may exceed $[*]. These costs include: • · a property appraisal • · a title search • · the cost for having a Deed of Trust or a Mortgage prepared. If the property being used as collateral is a commercial property, please be aware that these costs could be considerably higher due to [*]. [*] ]. If the increase is subject to security or collateral, the Credit Department will put the branch in touch with in-house counsel. When contacted, counsel will know what is required and in most cases can handle internally. Security or collateral could also be in the form of a certificate of deposit or cash. Any other type of security or collateral should be discussed with a Regional Manager.