ASSET FINANCE AGREEMENT

 

_____________________________________

 

ASSET FINANCE AGREEMENT

 

_____________________________________

 

BETWEEN

 

_______________________

[THE FINANCIER]

 

 

– AND –

 

 

_________________________

[THE BORROWER]

 

 

 

 

 

 

 

                            

 

 

 

ASSET FINANCE AGREEMENT

This ASSET FINANCE AGREEMENT (“this Agreement ”) is made on the ____________ day of ________________ 2023 (hereafter referred to as the “Effective Date”)

between

1. ___________________________ of Identification Card or Social Security Number _______________________ and whose physical address is situated at ___________________________ (“the Financier”).

 

AND

1. ___________________________ of Identification Card or Social Security Number _______________________ and whose physical address is situated at ___________________________ (“the Borrower”).

 

(Individually referred to as “a Party” and collectively referred to as the “Parties”).

Background

WHEREAS, the Borrower has requested the Financier to issue to the Borrower a loan in the amount set out in Clause 3 (the Loan Amount or Loan) for the purchase of a motor Asset described in Clause 6 (the Asset) and the Financier has agreed to issue the Loan Amount on the terms and subject to the conditions set out below.

 

WHEREAS, the Financier and the Borrower have entered into this Agreement for the purposes of recording and regulating their relationship, rights and obligations in respect of repayment of the Loan Amount on the terms and conditions detailed below

 

NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto, the Company and the Agent covenant and agree as follows:

 

 

IT IS HEREBY AGREED AS FOLLOWS:

 

 

 

 

 

1. DEFINITIONS

 

1. Asset means the motor Asset defined under clause 6 of the Agreement for the purchase of which the Financier provides a Loan to the Borrower and which serves as security for the fulfillment of the Borrower’s obligations under the Agreement.
2. Loan Amount (the Loan) means the principal disbursed to the Borrower or the purchase price paid by the Financier to the Seller.
3. Loan Facility means the aggregate amount of the Loan Amount, the interest and all other fees and costs that Borrower is obliged to pay to the Financier in accordance with the Agreement;
4. Seller means a business or person selling the motor Asset comprising the Asset as described in this Agreement and the term includes a ‘dealer’ engaged in the motor Asset business who sells motor Assets at retail to the general public;

 

2. COMMENCEMENT AND DURATION

 

This Agreement shall commence on the Disbursement Date (being the date when the Seller has made the Asset available to the Borrower on the basis of received payment from the Financier) and terminate on the Expiry Date (being the date of receipt of the final payment under the present Agreement).

 

3. PAYMENT AMOUNTS AND TERMS

 

24800. Loan Amount : USD $24800.00
24801. Term in Months : _____________
24802. Interest Rate: ten percent (10%).
24803. Interest Amount: USD 2,480.00  
24804. Repayment Amount (Total Loan Amount + Interest Amount) : USD 27,280.00
24805. Monthly Instalment : ______________________
24806. Number of Instalments : _______________
24807. Payment Date for first Monthly Instalment : ___________

 

 

 

 

 

4. PURPOSE OF THE LOAN

 

• The Loan Amount is used as the Purchase price of the Asset and is paid directly from the Financier to the Seller of the Asset according to the Seller’s invoice. Date of payment is considered the Disbursement Date of the Loan Amount for the purposes of the present Agreement.

 

• The Loan Amount is issued for the Term set out in Clause 3 above and shall be repaid in monthly instalments together with the Interest and any other applicable payments, fees or Penalty according to the terms below.

 

• The Asset is selected by the Buyer, and the Financier is not liable by any contract to deliver the Asset or to service or maintain it or to provide any other services related to the Asset.

 

 

• The Financier and the Borrower are the equal joint owners of the Asset described in under Clause 6. The joint ownership of the Asset is solely meant as security for the Loan advanced by the Financier to the Borrower and the Financier shall be excluded from any liability accrued or damaged occasioned by the use of the Asset by the Borrower.

 

• The Asset is understood to include each and every component part thereof; all replacements, renewals or additions to and substitutions for the Asset from time to time made are an integral part of the Asset and shall become the property of the owners of the Asset subject to this Agreement.

 

• Under this Agreement, the Financier agrees to transfer its ownership interest in the Asset and the Borrower agrees to acquire the Financier’s ownership interest in the Asset upon full repayment of the Loan Facility

 

5. REPAYMENT AND INTEREST

 

• The Borrower shall repay the Loan within a time period of __________________from the Disbursement Date. The Loan shall be repaid in monthly installments starting one month from the Disbursement Date.

 

• In consideration of the Financier granting to the Borrower the Loan, the Borrower shall pay the Financier the interest at the Interest Rate indicated in clause 3 of this Agreement (the “Interest”).

 

 

• Each monthly payment shall be made on the same day in each subsequent months.

 

 

• Total Repayment Amount as stated in Clause 3 includes the Loan Amount and Interest (but excludes any Penalty for late payments or other applicable fees).

 

• The Borrower may repay the Loan at any time before the due date. However, this does not affect the amount of Interest payable, which must be paid in full.

 

 

• If the Borrower fails to repay the Loan and/or Interest or any other sum due or owing by the Borrower to the Financier the Borrower will be charged the Penalty of _____% from any outstanding amount.

 

• All payments due from the Borrower hereunder shall be made free and clear of and without deduction for or on account of any present or future taxes. If at any time, any regulatory requirement or any taxing authority requires the Borrower to make any deduction or withholding in respect of taxes from any payment due from them for the account of the Financier, the sum due from the Borrower in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Financier receives a net sum equal to the sum which the Financier would have received had no such deduction or withholding been required to be made and the Borrower shall indemnify the Financier against any losses or costs incurred by the Financier by reason of any failure of the Borrower to make any such deduction or withholding

 

6. ASSET DETAILS

The details of the motor vehicle subject to this Agreement are as set out below:

1. Registration number : ____________
2. Chassis number : _______________
3. Engine number: _________________
4. Make : 2017 Dodge Ram bighorn
5. Color : __________________

 

 

 

7. EXCLUSION OF LIABILITY

 

Under no circumstances shall the Financier be liable for any direct, indirect, special, consequential, or punitive damages (including lost profits) arising out of or relating to this Agreement, the use of the Asset by the Borrower or the transactions it contemplates (including breach of contract, tort, negligence, or other form of action)—if said damage is the result of the Borrower’s negligence or breach.

 

8. INDEMNITY

 

The Borrower shall indemnify and keep indemnified the Financier from and against any and all loss, damage or liability whether criminal or civil suffered [and legal fees and costs incurred] by the Financier resulting from:

 

1. any act, neglect or default of the Borrower or his agents and licensees in respect to use of the Asset.
2. any successful claim by any third-party in respect of any matter arising from the use of the Motor Asset.

 

 

1. REPOSSESSION

 

Subject to any applicable law, should the Borrower fails to make payments to the Financier as provided for under this Agreement for a period of _____________ after the Financier has issued the Borrower with a written notice demanding the payment(s) ,  the Financier may without any prior notice repossess the Asset and for that purpose may by his agents enter on any property occupied by the Borrower, and (as the agent of the Borrower) on any other property which the Borrower might enter upon, where the Asset may be or may be supposed to be.

 

 

 

 

1. AMENDMENTS

 

• The Parties agree that any amendments made to this Agreement must be made in writing and signed by both Parties to this Agreement.

 

• Any such amendments made by the Parties will be applied to this Agreement.

 

 

1. ASSIGNMENT

 

The Borrower hereby agrees not to assign any of his responsibilities in this Agreement to a third party unless consented to by the Financier in writing.

 

1. DISPUTE RESOLUTION

 

All or any disputes arising out or touching upon or in relation to the terms and conditions of this Agreement, including the interpretation and validity of the terms thereof and the respective rights and obligations of the Parties, shall be settled amicably by mutual discussion, failing which the same shall be settled through litigation. Parties hereby agree that the courts of the state of ____________ shall have the jurisdiction to hear and determine any dispute contemplated under this Clause.

 

13. NOTICES

 

• Any notice, demand or other communication served on the Borrower by the Financier under or in connection with this Agreement shall be made in writing and, unless otherwise stated and to the extent permitted by law, may be given or made by letter, mobile text message (SMS) or e-mail.

 

• Save as otherwise expressly provided herein and to the extent permitted by law, any such notice, demand or other communication shall be deemed to have been properly served on the Borrower by the Financier when served in any one or more of the following ways: (a) if by way of letter and sent by personal delivery, upon delivery at the physical address of the Borrower; or (b) if by way of mobile text message (SMS) on the next working day after transmission; or (c) if by way of letter and sent by registered post, seven (7) days after the date of posting provided that proof is given that the notice was properly addressed and duly dispatched by registered post; or (d) if by way of e-mail, on receipt of a confirmation of receipt by the receiver of the e-mail to the sender of the e-mail and in any event, on the next working day after transmission provided that notice sent by e-mail alone shall not constitute a valid notice and the notice giver shall use either of the other forms of notice provided in this clause in addition to sending a notice by e-mail;. The relevant address, mobile telephone number and email address of the Borrower for any notice, demand or other communication to be served on the Borrower under or in connection with this Agreement shall be provided by the Borrower before executing this Agreement.

 

14. SEVERABILITY

 

In the event that any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, the remaining provisions will still be enforced, in accordance with the Parties’ intention.

15. WAIVERS

 

No waiver by either party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

16. COSTS

 

Each party shall cater for its own costs incurred in the preparation and implementation of all matters contemplated by this Agreement.

 

1. COUNTERPARTS

 

• This agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate original, but all the counterparts shall together constitute one agreement.

 

• Transmission of an executed counterpart of this agreement OR the executed signature page of a counterpart of this agreement by (a) fax or (b) email (in PDF, JPEG or other agreed format) shall take effect as delivery of an executed counterpart of this agreement. If either method of delivery is adopted, without prejudice to the validity of the agreement thus made, each party shall provide the others with the original of such counterpart as soon as reasonably possible thereafter.

 

• No counterpart shall be effective until each party has executed and delivered at least one counterpart.

 

 

1. GOVERNING LAW

 

This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of the State of ________________.

 

19. INTERPRETATION

 

The language of this Agreement will be construed as a whole according to its fair meaning, and not strictly for or against any of the parties.  The section headings in this Agreement are solely for convenience and will not be considered in its interpretation.

 

1. ENTIRE AGREEMENT

 

This Agreement contains the entire agreement and understanding among the Parties hereto, with respect to the subject matter hereof. It supersedes all prior agreements, understandings, inducements, and conditions (express, implied, oral, written, or of any nature whatsoever with respect to the subject matter hereof). The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

 

IN WITNESS WHEREOF, each of the Parties has executed this Agreement, both Parties by its duly authorized officer, as of the day and year set forth below.

 

 

 

 

 

 

 

EXECUTION:

 

Signed by THE FINANCIER ;-   Signature: ………………………………….. Name: ………………………………………… Date : ………………………………

Signed by THE BORROWER ;-   Signature: ………………………………….. Name: ………………………………………… Date: ………………………………………

 

 

 

 

At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, The LegalPen will be able to prepare the legal document within the shortest time possible. You can send us your quick enquiry ( here )