Page 76 - CARS Standard Program

Additional Terms and Agreements
We find additional authority for self-help repossession within the Terms and Agreements locatedonthereversesideoftheinstallmentloancontract.Notall installment loan contracts containthesamelanguage,butallcontainsimilarlanguageauthorizingthe 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 states basically that the 1secured 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.