Page 77 - Microsoft Word - NEW 2017 Standard Program.docx

Additional Terms and Agreements
We find additional authority for self-help repossession within the Terms and Agreements
located on the reverse side of the installment loan contract. Not all installment loan
contracts contain the same language, but all contain similar language authorizing the
acceleration of payment and self-help repossession if the agreement terms are not met.
We will address three of the additional terms here:
1. Removing the property from the address listed in the Terms and
Agreements
2. Acceleration Clause
3. Authority to Repossess

1. Removing the property from given address
This section of the agreement states that the buyer hereby warrants, “not to remove
said property from the address or area as herein specified without the prior
written consent of the holder thereof.”

The purpose of this term, along with additional language in the agreement, is “to
permit the holder of this contract, personally or by agent, at all times to enter
upon any premises where said property may be and to have access for the purpose
of examining the same or for the purpose of repossession after default.”

2. Acceleration Clause
This clause gives broad authority to the secured party to demand the remaining balance
of the contract be paid immediately. Some of the reasons for acceleration of payments
include:
qq failure to make payments as agreed
qq insolvency filed by the debtor or against the debtor by another party
qq federal tax liens filed against the debtor
qq writ of garnishment or other legal processes against the debtor

3. Authority to Repossess
Specific language in installment loan contracts may differ slightly with regard to the
right to repossess collateral. However, the intent of the language is the same and
1
states basically that the secured party or representative may enter upon any
premises where said property may be and remove the same with or without
process of law.

Note: Although the contract’s repossession clause states that the secured party
may enter upon “any premises” it is of critical importance to know that special
arrangements are required to repossess collateral from military installations and
Indian reservations. These specific locations and procedures for repossessing are

covered in detail in this Program.