Exhibit No. 3.2
RETAIL INSTALLMENT SALES CONTRACT
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Buyer (and Co-Buyer) Name and Address Ceditor (Seller Name and Address)
(include County & Zip Code)
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You, the Buyer (and Co-Buyer, if any), may buy the vehicle described below for
cash or on credit. The cash price is shown below as "Cash Price." The credit
price is shown below as "Total Sale Price." By signing this contract, you choose
to buy the vehicle on credit under the agreements on the front and back of this
contract. This contract is not contingent upon any financing terms which are
satisfactory to the parties.
Description of Vehicle. You agree to buy and the Creditor agrees to sell the
following vehicle.
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New or Used Year Made and Model Body Type
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Vehicle Identification No. Use for Which Purchased
[ ] personal [ ] agricutural
[ ] business [ ] _________________
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If truck -- Describe body and major names of equipment sold:
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FEDERAL TRUTH-IN-LENDING DISCLOSURES
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ANNUAL PERCENTAGE RATE FINANCE CHARGE Amount Financed
The cost of your credit The dollar amount the The amount of credit
as a yearly rate. credit will cost you. provided to you or on
your behalf
____________% $ ______________ $ _______________
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Total of Payments Total Sale Price
The amount you will have paid The total cost of your purchase
after you have made all on credit, including your
payments as scheduled. downpayment of $______________ is.
$_______________________ $__________________________
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Your Payment Schedule Will Be:
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Number of Payments Amount of Payments
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When Payments Are Due Or as Follows
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Monthly beginning
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beginning
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beginning
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Late Charge. If a payment is not paid in full within 7 days after it is due, you
will pay a late charge of 5% of the late payment.
Prepayment. If you pay off all your debt early, you will not have to pay a
penalty and you may be entitled to a refund of part of the finance charge.
Security Interest. You are giving a security interest in the vehicle being
purchased.
Additional information. See the other side of this contract for more information
including information about nonpayment, default, any required repayment in full
before the scheduled date, prepayment refunds and security interest.
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ITEMIZATION OF AMOUNT FINANCED
1. Cash Price (including any accessories,
services, and taxes)_______________________________________$ _____________(1)
2. Total Downpayment = Net Trade-in $ ________________ + Cash
Downpayment $_________________________
Your Trade-in is a _______________________________________ $ _____________(2)
Year Make Model
3. Unpaid Balance of Cash Price (1 minus 2)__________________ $ _____________(3)
4. Other Charges including Amounts Paid to Others on Your Behalf:
A Cost of Physical Damage Insurance Paid to the Insurance
Company Named Below -- Covering damage to the
Vehicle. _______________________________________________ $ _____________
B Cost of Optional Mechanical Repair Insurance Paid to the
Insurance Company Named Below -- Covering Certain
Mechanical Repairs. ____________________________________ $ _____________
C Cost of Optional Credit Insurance for the Term of this
Contract Paid to the Insurance Company or Companies
Named below. Life $________________ Disability, Accident
and Health $____________________________________________ $ _____________
D Official Fees Paid to Government Agencies ______________ $ _____________
E Taxes Not Included in Cash Price _______________________ $ _____________
F Government License and/or Registration Fees (Itemize)___ $ _____________
G Government Certificate of Title Fees ___________________ $______________
H Other Charges (Seller must identify who will receive
payment and describe purpose)
to ______________ for _______________________________ $ _____________
to ______________ for _______________________________ $ _____________
Total Other Charges and Amounts Paid to Others on Your
Behalf _________________________________________________ $ _____________(4)
5. Amount Financed -- Unpaid Balance (amount of credit you
will get) (3 + 4) ________________________________________ $ _____________(5)
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Insurance. If any insurance is checked below, the policies or certificates
issued by the Companies named will describe the terms and conditions.
Physical Damage Insurance. You may obtain physical damage insurance from anyone
you want who is acceptable to the Creditor. If you get the insurance from the
seller, the cost shown in 4A of the itemization above is $_____________________
Insurance Company _______________________ Term _____________ months.
Optional Mechanical Repair Insurance. The cost of this insurance is shown in 4B
of the itemization above.
Insurance Company ____________________________________
Term: [ ] _____________ Months or ________________ Miles whichever occurs first.
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Optional Credit Insurance. Credit line insurance and credit disability insurance
are not required to obtain credit and will not be provided unless you sign for
them and agree to pay the additional cost. If you want this insurance, check the
insurance desired and sign below. If you have chosen this insurance, the cost is
shown in 4C of the itemization above.
Check the insurance desired:
[ ] Life (Buyer [ ] Co-Buyer [ ] Both [ ])
[ ] Disability, Accident and Health (Buyer Only)
By signing here, you are stating that you are under age 65.
[ ] __________________________________________________
Name of Insurer
______________________________________________________
Home Office Address
This policy will pay your debt on this contract up to $____________________
Total policy coverage for this and other contracts is limited to $______________
NO LIABILITY INSURANCE INCLUDED.
_____________________________ _________________________________
Buyer signature Date Co-Buyer Signature Date
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I (we) waive the benefit of my (our) Homestead Exemption as to this obligations.
You signed this contract and received a copy on
(Do not date on Sunday) ________________________, 19 ____________________
Buyer Signs __________________________ Co-Buyer Signs _________________________
Co-Buyers and Other Owners--A co-buyer is a person who is responsible for paying
the entire debt. An other owner is a person whose name is on the title to the
vehicle but does not have to pay the debt. The co-buyer or other owner knows
that the Creditor has a security interest in the vehicle and consents to the
security interest.
Other owner signs here __________________ Address ______________________________
Creditor Signs ___________________ By _______________ Title ____________________
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This contract is assigned with recourse under the terms of the "Seller's
Assignment" on the reverse side.
_________________________________________________________________
Seller
_________________________________________________________________
By (If Corp. or Partnership) (Title)
This contract is assigned without recourse or with limited recourse under the
terms of the "Seller's Assignment" on the reverse side.
_________________________________________________________________
Seller
_________________________________________________________________
By (If Corp. or Partnership) (Title)
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Notice: See Other Side
WHITE--ORIGINAL YELLOW--FILE COPY PINK--BUYERS COPY GOLDENROD--CO-BUYERS COPY
Ownership and risk of loss. You agree to pay the creditor all you owe under this
contract even if the vehicle is damaged, destroyed or missing. You agree not to
sell, transfer, or remove the vehicles from the State of Virginia without the
Creditor's written permission. You agree not to expose the vehicle to misuse or
confiscation. You will make sure the Creditor's security interest (lien) on the
vehicle is shown on the title. If the Creditor pays any repair bills, storage
bills, losses, fines, or other charges on the vehicle, you agree to pay the
amount when the Creditor asks for it.
Security interests. You are giving the Creditor a security interest in the
vehicle being purchased and any accessories, equipment and replacement parts
being installed in the vehicle. The security interest also covers (1) insurance
premiums and charges for service contracts returned to the creditor (2) proceeds
of any insurance policies or service contract on the vehicle and (3) proceeds of
any insurance policies on your life or health which are financed in this
contract. This secures payment of all amounts you owe in this contract and in
any transfer, renewal, extension or assignment of this contract. It also secures
your other agreements in this contract.
Prepayment Refund. You can prepay all of your debt and get a refund or part of
the Finance Charge. This refund will be figured by the Rule of 78's - a method
commonly used to figure refunds on installment contracts, provided however the
creditor is entitled to receive a minimum of $25 in finance charges. There will
be no refund report to you if it is less than $1.00.
NOTICE IF YOU PAY THIS LOAN OR SALE ON CREDIT PARTIALLY OR IN FULL
BEFORE ITS DUE DATE, THE AMOUNT OF INTEREST YOU PAY WILL BE GREATER
THAN THE AMOUNT OF INTEREST YOU WOULD PAY FOR A SIMPLE INTEREST LOAN OF
THE SAME PRINCIPAL AMOUNT.
Right to Refinance a Balloon Payment. Any installment which is more than twice
the amount of an otherwise regularly scheduled equal installment is a Balloon
Payment. If the property described in this contract is to be used primarily for
consumer purposes, unless a separate agreement has been executed, the Buyer has
the right to refinance any payment which is more than 10% greater than the
regular or recurring installment payments on the basis of an extended period of
time and additional payments which shall allow the balance to be paid in as few
periodic payments not more than 10% greater than the regularly scheduled
installment payments as are required to pay such balances.
Required Physical Damage Insurance. You agree to have physical damage insurance
covering the loss or damage to the vehicle for the term of the contract. At any
time during the term of this contract, if you do not have physical damage
insurance which covers both the interest of you and the Creditor in the vehicle,
then the Creditor may buy it for you. If the Creditor does not buy physical
damage insurance which covers both interests in the vehicle, if may, if it
decides, buy insurance which covers only the Creditor's interest .
The Creditor is under no obligation to buy any insurance, but may do so
if it desires. If the Creditor buys either of these coverages, it will let you
know what type it is and the charge you must pay. The charge will consist of the
cost of the insurance and a finance charge, at the highest lawful contract rate.
You agree to pay the charge in equal installments along with the payments shown
on the payment schedule.
If the vehicle is lost or damaged, you agree that the Creditor can use
any insurance settlement either to repair the vehicle or to apply to your debt.
Late Charge. You will have to pay a late charge on each payment received by the
Creditor more than seven days late. The charge is shown on the front. You must
also pay any cost paid by the Creditor to collect any late payment. Acceptance
of a late payment or late charge does not excuse your late payment or mean that
you can keep making payments after they are due. The Creditor may also takes the
steps set forth below if there is any late payment.
Optional Insurance or Service Contracts. This contract may contain charges for
optional insurance or service contracts. If the vehicle is repossessed, you
agree that the Creditor may claim benefits under these contracts and terminate
them to obtain refunds for unearned charges.
Insurance or Service Contract Charges Returned to Creditor. If any charge for
required insurance is returned to the Creditor it may be credited to your
account or used to buy similar insurance or insurance which covers only the
Creditor's interest in the vehicles. Any refund on optional insurance or
service contracts obtained by the Creditor will be credited to your account.
Credits to your account will include both the amounts received by the
Creditor and the unearned Finance Charges on those amounts. These credits will
be applied to as many of your installments as they will cover beginning with
the final installment. You will be notified of what is done.
Required Repayment in Full Before the Scheduled Date. If you fail to pay any
payment within 10 days after it is due according to the payment schedule or if
you break any of the agreements in the contract (default), the Creditor can
demand that you pay all you owe on the contract at once. In figuring what you
owe, the Creditor will give you a refund of part of the Finance Charge figured
the dame as if you had prepaid in full.
Repossession of the Vehicle for Failure to Pay. Repossession means that if you
fail to pay any payment within 10 days after it is due according to the payment
schedule or if you break any of the agreements in this contract (default), the
Creditor can take the vehicle from you. To take the vehicle the Creditor can
enter your property or the property where it is stored, so long as it is done
peacefully. If there is any personal property in the vehicle, such as clothing,
the Creditor can store it for you. Any accessories, equipment or replacement
parts will remain with the vehicle.
Getting the Vehicle Back After Repossession. If the Creditor repossesses the
vehicle you have the right to get it back (redeem) by paying the entire amount
you owe on the contract (not just past due payments) plus any late charges, the
cost of taking and storing the vehicle and other expenses that the Seller or the
Creditor has had in figuring the entire amount you owe on the contract. The
Creditor will give your a refund for part of the Finance Charge figured the same
as if you had prepared your contract. Your right to redeem will end when the
vehicle is sold.
Sale of the Repossessed Vehicle. The Creditor will send you a written notice of
sale at least 10 days before selling the vehicle. If you do not redeem the
vehicle by the date on the notice the Creditor can sell it. The Creditor will
use the net proceeds of the sale to pay all or part of your debt.
The net proceeds of sale will be figured this way. Any late charges and any
charges for taking and storing the vehicle, cleaning and advertising, etc. and
any attorney fees and court costs will be subtracted from the selling price.
If you owe the Creditor less than the net proceeds of sale, the Creditor
will pay you the difference, unless required to pay it to someone else. For
example, the Creditor may be required to pay a lender who has given you a loan
and also taken a security interest in the vehicle.
If you owe more than the net proceeds of sales, you will pay the Creditor
the difference between the net proceeds of sale and what you owe when the
Creditor asks for it. If you do not pay this amount when asked, you may also be
charged interest at the highest lawful rate until you do pay all you owe to the
Creditor.
Collection Costs. If the Creditor hires an attorney to collect what you owe, you
will pay the attorney's reasonable fee and any court cost.
Delay in Enforcing Rights and Changes of this Contract. The Creditor can delay
or refrain from enforcing any of the rights under the contract without losing
them. For example, the Creditor can extend the time for making some payments
without extending others. ANY CHANGE IN TERMS OF THIS CONTRACT MUST BE IN
WRITING AND SIGNED BY THE CREDITOR. NO ORAL CHANGES ARE BINDING. If any part of
this contract is not valid all other parts will remain enforceable.
Warranties Seller Disclaims. You understand that the Seller is not offering any
warranties and that there are no implied warranties of merchantability, of
Fitness for a particular purpose, or any other warranties, express or implied by
the Seller, covering the vehicle unless the Seller extends a written warranty or
service contract within 90 days from the date of this contract.
An implied warranty of merchantability generally means first the vehicle is
fit for the ordinary purpose for which such vehicles are generally used. A
warranty of fitness for a particular purpose is a warranty that may arise when
the Seller has reason to know the particular purpose for which you require the
vehicle and you rely on the Seller's skill or judgement to furnish a suitable
vehicle.
This provision does not affect any warranties covering the vehicle which may
be provided by the Vehicle manufacturers.
NOTICE: ANY HOLDER OF THE CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND
DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR
SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY
HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR
HEREUNDER.
The Preceding NOTICE applies only to goods or services obtained primarily for
personal, family, or household use. In all other cases Buyer will not assert
against any subsequent holder or assignee of this contract any claims or
defenses the Buyer (debtor) may have against the Seller, or against the
manufacturer of the vehicle or equipment obtained under this contract.
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SELLER'S AGREEMENT
Seller sells and assigns to __________________________________ all of its right,
title and interest in this contract.
Seller warrants and represents; (1) The contract across-from the sale of the
property described on the face of the contract; (2) Seller had title to the
property at the time of sale free of any liens; (3) All disclosures required by
the law were properly made to that buyer prior to the Buyer signing the
contract; (4) All insurance documentation will be delivered to the Buyer within
the time required by law; (5) To the best of Seller's knowledge, the Customer's
Statement attached is accurate. (6) The down-payment received by Seller is
exactly as stated; (7) The contract is enforceable, and (8) Seller is licensed
as required by law.
Each of these warranties and representations is material to assignee's
acceptance of this contract. If any of them is breached or is erroneous, Seller
unconditionally promises to accept reassignment of this contract and to pay
assignee, upon demand the full amount of the unpaid balance under this contract.
Seller also agrees to indemnify assignee to the full extent of all losses or
expenses incurred by assignee as a result of such breach or error.
Seller agrees to indemnify assignee for any judicial setoff or loss as incurred
as a result of a claim or defense of Buyer against Seller.
If this contract is rescinded by court order, Seller shall pay assignee the full
amount assignee paid to purchase it. Seller shall be liable even if a waiver,
compromise, settlement or variation of the terms of the contract releases the
Buyer.
Seller waives notice of acceptance of this guarantee and notices non-payment and
non-performance.
CONTRACTS ASSIGNED WITH RECOURSE
If this contract is assigned with recourse. In addition to the foregoing
guarantees, indemnities and obligations Seller unconditionally guarantees
payment on demand of the unpaid balance on this contract and all losses and
expenses incurred by assignee. In the event of a default in payment of any
installment, except as otherwise provided by the terms of the present assignee
Retail Plan.
CONTRACTS ASSIGNED WITHOUT RECOURSE OR WITH LIMITED RECOURSE
If this contract is assigned without a recourse or with limited recourse, such
assignment is without recourse to the Seller except to the circumstances set
forth above and in and to the extent that an amount is stated in the following
paragraph.
Seller unconditionally guarantees that if Buyer defaults in the payment of any
installment under this agreement, Seller will pay, upon demand by assignee, the
unpaid balance to the sum of $__________________________.
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