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Motor Vehicle Repossession Agreement

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Motor Vehicle Repossession Agreement Powered By Docstoc
					This is an agreement between a creditor and a collection agency for the repossession of
a vehicle. The creditor repossesses the vehicle from the debtor due to unpaid payment
obligations. Under this agreement, the collection agency acts as the creditor’s exclusive
repossession agent and the creditor cannot appoint any other collection agency. This
agreement should be used by individuals or entities that want to appoint an exclusive
collection agency for the repossession of a vehicle because of unpaid payment
obligations.
         MOTOR VEHICLE REPOSSESSION AGREEMENT

This Motor Vehicle Repossession Agreement (hereinafter referred to as the “Agreement”) is
made and entered on this _______ day of ______________, 20___ [Instruction: Insert Date] by
and between: ___________________ [Instruction: Insert Name of Creditor],
_________________________ [Instruction: Insert Address] (hereinafter referred to as the
“Creditor”), and ___________________ [Instruction: Insert Name of Agency],
_______________________ [Instruction: Insert Address] (hereinafter referred to as the
“Agency”)

WHEREAS the Creditor is in the possession of many retail installment agreements, granting
liens on automobiles;

WHEREAS the Creditor desires to avail Agency’s exclusive repossession services in the event
that the Creditor’s contract debtors (“Debtors”) fail to repay the installments and the Debtors are
in breach of their retail installment agreements; and

WHEREAS, the Agency desires to perform such repossession services;

NOW, THEREFORE, for good and valuable consideration, receipt and sufficiency of which is
hereby acknowledged, and in consideration of the promises and covenants hereinafter contained,
the parties hereto agree as follows:

1. TERM

This agreement shall commence on the date first hereinabove written and shall continue for a
period of __________ (___) years [Instruction: Insert Term].

2. TERRITORY

Agency shall act as the exclusive agent of the Creditor in providing such repossession services
throughout the __________________________ [Instruction: Insert Territory].

3. COMPENSATION

As compensation for the Agency’s repossession services, the Creditor agrees to pay the Agent in
the amount and on the terms and conditions set forth in Exhibit “A”, attached hereto and
incorporated herein.

4. AUTHORIZATION

The Agency shall repossess only those vehicles which are authorized by the Creditor in a writing
that specifies: the (A) vehicle make, model and year; (B) the Vehicle Identification Number
(VIN); and (C) Debtor’s name and address. Agency shall not release any such repossessed


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vehicle to any person other than Creditor or to a third party designated by Creditor in a signed
writing.

5. METHOD OF REPOSSESSION

    A. Agency shall repossess the vehicles, without creating a breach of the peace, and in
accordance with any applicable laws or regulations. In the event that any repossession cannot be
accomplished without a breach of the peace, Agency shall immediately notify Creditor and shall
discontinue attempts to repossess unless the Creditor authorizes the same.

    B. While taking custody of the vehicles, Agency shall use all possible care to protect and
safeguard the vehicles, and shall deliver the same as directed by the Creditor, at Creditor’s
expense, in the substantially the same condition as received, excluding any reasonable and
ordinary wear and tear.

    C. In the event that any vehicle which is repossessed contains personal property of the
Debtor, Agency shall have 2 persons witness a complete inventory. A copy of such inventory
shall be provided to Creditor. Agency shall release such items of personal property to the Debtor
upon execution of a receipt of the same.

6. REPRESENTATIONS, WARRANTIES AND INDEMNITY

   A. Agency represents and warrants to Creditor that:

     i.  Agency has the complete power and authority to enter into this Agreement and this
Agreement constitutes a valid and legally binding agreement enforceable against the Agency;

     ii. Agency is in good standing in the state of Agency’s incorporation and is qualified to
do business as a foreign corporation in each of the other states in which it is providing Services
hereunder;

     iii. Agency shall secure or has secured all permits, licenses, regulatory approvals and
registrations required to render the services set forth herein, including without limitation,
registration with the appropriate taxing authorities for remittance of taxes;

     iv.   Agency’s services hereunder shall be performed in a timely and professional manner
and shall conform to or exceed, in all material respects, the specifications described herein, as
well as the standards generally observed in the industry for similar services. Agency shall
perform its obligations under this Agreement in a professional manner using competent
personnel having expertise suitable to their assignments; and

      v. Agency is committed to adhering to all applicable Fair Debt Collection Practices,
laws and regulations and demands the same commitment from all with whom Agency does
business. All of Agency’s employees, officers, clients or other personnel representing Agency
is prohibited from implementing, practicing or carrying out any practices or procedures which
are, or have the effect of being, contrary to the letter and spirit of these laws.


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    B. Agency shall fully protect, indemnify and hold harmless and defend Creditor and its
affiliates, subsidiaries and parents, its respective directors, officers, employees, agents, insurers,
attorneys, successors and assigns for any and all loss, demands, penalties, interest, actions or
causes of action whatsoever, including costs, expenses and reasonable attorneys fees, in any
manner arising out of, related to or in connection with, the performance of services by Agency
resulting from: any breach of this Agreement; the violation of any federal, state or local law,
rule, regulation, or ordinance; or any intentional or negligent act or omission or willful
misconduct of Agency or its officers or employees.

   C. Creditor represents and warrants to Agency that:

     i.  Creditor has the complete power and authority to enter into this Agreement and this
Agreement constitutes a valid and legally binding agreement enforceable against the Creditor.

     ii. Creditor agrees to cease all collection activities and not make assignment to any other
person, until Agency has either repossessed the collateral or the assigned matter is closed

     iii. Creditor is committed to adhering to all applicable Fair Debt Collection Practices,
laws and regulations and demands the same commitment from all with whom Creditor does
business. All of Creditor’s employees, officers, clients or other personnel representing Creditor
is prohibited from implementing, practicing or carrying out any practices or procedures which
are, or have the effect of being, contrary to the letter and spirit of these laws.

    D. Creditor shall fully protect, indemnify and hold harmless and defend Agency and its
affiliates, subsidiaries and parents, its respective directors, officers, employees, insurers,
attorneys, successors, assigns for any and all loss, demands, penalties, interest, actions or causes
of action whatsoever, including costs, expenses and reasonable attorneys fees, in any manner
arising out of, related to or in connection with, or resulting from: any breach of this Agreement;
the violation of any federal, state or local law, rule, regulation, or ordinance; or any intentional or
negligent act or omission or willful misconduct of Creditor or its officers, agents or employees.

7. INSURANCE

Agency shall, at Agency’s own expense, secure and maintain, and shall require Agency’s sub-
contractors, to secure and maintain: (A) repossession and storage liability insurance in a
minimum amount of One Million Dollars ($1,000,000), (B) tow truck liability insurance in a
minimum amount of One Million Dollars ($1,000,000), and (C) worker’s compensation
insurance providing statutory limits, throughout the term of this Agreement, and shall furnish to
Client certificates evidencing such insurance prior to commencing services hereunder

8. MISCELLANEOUS

   A. The relationship between the parties is solely of contracting party and independent
contractor. Nothing in this Agreement or in the activities contemplated by the parties hereunder


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shall be deemed to create an agency, partnership, employment or joint venture relationship
between the parties.

    B. Neither party may assign this Agreement, nor any of the rights and/or obligations set
forth hereunder, without the prior written consent of the other party. Any such attempted
assignment shall be void. In accordance with the foregoing, this Agreement shall be binding
upon and inure to the benefit of the parties, their predecessors, assigns, successors-in-interest,
personal representatives, their past and present attorneys, principals, employees, independent
contractors, officers, directors, shareholders, parents, issue, subsidiaries, agents, servants, estates,
heirs, administrators, executors, conservators, trustees, legatees, and other affiliated entities of
each of the Parties hereto.

    C. This Agreement shall be construed under the laws of the State of __________________,
[Instruction: Insert State], applicable to agreements to be wholly performed therein, with
jurisdiction exclusive to the Federal and State courts located in the County of _____________
[Instruction: Insert County], State of ______________ [Instruction: Insert State], and the
parties hereto irrevocably consent to the jurisdiction of such courts.

    D. All notices, correspondence, writings, statements or other communication required or
permitted to be given hereunder shall be given, made or communicated, as the case may be, by
personally delivering the same, by facsimile, or by registered or certified mail, first-class,
postage prepaid, return receipt requested, addressed to the recipient as first set forth above. Both
parties reserve the right to change the address of service at any time, with notice in writing to the
receiving party.

    E. This Agreement constitutes the entire agreement between the parties and supersedes any
prior or contemporaneous agreements. Nothing herein contained shall be binding upon the
parties until this Agreement has been executed by an officer of each party. This agreement may
not be modified or supplemented except in writing signed by both parties.

    F. Section headings are included for convenience or reference only and are not intended to
define or limit the scope of any provision of this Agreement and should not be used to construe
or interpret this Agreement.

    G. No delay, failure or waiver of either party’s exercise or partial exercise of any right or
remedy under this Agreement shall operate to limit, impair, preclude, cancel, waive or otherwise
affect such right or remedy. Any waiver by either party of any provision of this Agreement shall
not imply a subsequent waiver of that or any other provision of this Agreement

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© Copyright 2011 Docstoc Inc.                                                                 5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the year and
date first above written.


CREDITOR:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]


AGENCY:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]




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                                        Exhibit “A”

                                Payment Terms and Conditions

      ___________________________ [Instruction: Insert Payment Amount and Terms]




© Copyright 2011 Docstoc Inc.                                              7

				
DOCUMENT INFO
Description: This is an agreement between a creditor and a collection agency for the repossession of a vehicle. The creditor repossesses the vehicle from the debtor due to unpaid payment obligations. Under this agreement, the collection agency acts as the creditor’s exclusive repossession agent and the creditor cannot appoint any other collection agency. This agreement should be used by individuals or entities that want to appoint an exclusive collection agency for the repossession of a vehicle because of unpaid payment obligations.
This document is also part of a package Automotive Lease Agreements 5 Documents Included