Page 10 - Santa Clara County Superior Court

ADDITIONAL TERMS AND AGREEMENTS
A. SECURITY INTEREST: You give us a security interest under the California Uniform Commercial Code in the goods sold and all parts or accessories and in all insurance premiums financed for you or rebates from insurance premiums and in the proceeds of any insurance policies covering the goods for insuring your life or health, which security interest secures all sums which may become due under this contract. You agree that you will keep the goods free from all taxes and liens and not use them improperly and not make any material change
in the goods. We may pay any taxes or liens and you agree to reimburse us on demand.
B. PREPAYMENT AND ACCELERATION: You may prepay all amounts due under this agreement at any time. If you default in making any payment when due, or in the performance of any term or condition of this agreement, we may, in addition to our other remedies, declare all unpaid sums immediately due and payable. In either event, any unearned finance charge will be credited or refunded to you in accordance with Civil Code #1806.3. No refund credit of less than $1.00 will be made.
C. INSURANCE: You agree to keep the property insured in favor of us with a policy satisfactory to us, with fire, theft and comprehensive coverage, insuring the property in an amount sufficient to cover the value of the property. You agree to deliver the policies to us, and you agree that we may (i) contact your insurance agent to verify coverage or to add us as loss payee or lienholder, (ii) make any claim under your insurance policy, (iii) cancel the insurance on your default, and (iv) receive any payment of loss or return premium, and apply the amounts received, at our option, to replacement of the property or to your indebtedness under this Agreement, including indebtedness not yet due. If you fail to maintain such insurance, we may, at our option, procure such insurance, and you agree to pay for such insurance and finance charges on the premiums at the annual percentage rate shown on the reverse, according to the notice we send you. If insurance has been purchased in connection with this contract, any difference between the amounts shown in the Statement of Insurance for premiums which may arise from errors in computation, classification, grouping or zoning, or changes in the type of insurance shall be payable by you on demand. You agree that we can use any proceeds from insurance to either repair or replace the property or to reduce your debt under this contract as we may decide. Whether or not the property is insured, you must pay for it if it is lost, damaged, or destroyed.
D. WARRANTIES OF BUYER: You promise that you have given true and correct information in your application for credit, you have no knowledge that will render that information untrue in the future, and you understand that we have relied upon the correctness of that information in entering into this agreement; that upon request you will provide us with documents and other information necessary to verify any item of information contained in your credit application.
E. LATE CHARGES: If you default in the payment of any installment for a period of 10 days or more, we may collect, and you agree to pay a delinquency charge of $10.00, or other such rate charge as may be disclosed on the face of this contract.
F. RIGHTS UPON DEFAULT: 1) If you default in the performance of any of the terms and conditions of this agreement, including but not limited to; a) the making of any payment when due; b) become insolvent or the subject of bankruptcy proceedings; c) or die; d) or the property purchased is damaged or destroyed; we at our option and without notice may; a) declare all unpaid sums due under this agreement immediately due and payable; b) file suit against you for all unpaid sums due under this agreement; c) without prior demand, we may take immediate possession of the property wherever the same may be found. Within 10 days of taking such possession, we shall give written notice to you: (i) of our intention to retain the property in satisfaction of all unpaid sums due under this agreement; (ii) that the property will be sold at public sale. In either event, you shall have the right to redeem the property within 10 days by paying or tendering all unpaid sums due under this agreement, together with delinquency and extension charges, plus any expense reasonably incurred by us in good faith for repairing, reconditioning, or preparing the property for sale, and if such redemption is not made, said amounts and the expenses of the subsequent sale shall be payable from the proceeds thereof; (d) If you fault or breach this agreement you agree to pay finance charges at the annual percentage rate shown on the reverse side until all sums owing us are paid in full; (e) In the event that you shall fail to notify us of any change of address or shall not communicate with us for a period of 45 days after any default in paying installment due under this agreement, or if you shall remove the property from this state, we may collect reasonable costs of collection. 2) In the event that any action to enforce the terms or conditions of this agreement is brought, the prevailing party shall be entitled reasonable attorney’s fees and court costs.
G. SELLER’S WARRANTIES: UNLESS YOU HAVE BEEN GIVEN AN EXPRESS WARRANTY IN WRITING, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE MERCHANTABILITY, SUITABILITY, FITNESS FOR PURPOSE, OR OTHERWISE CONCERNING THE MERCHANDISE OR SERVICE SOLD.
H. OTHER AGREEMENTS OF BUYER: (1) You agree that if we accept monies in sums less than those due or make extension of due dates of payments under this contract, doing so will not be a waiver of any later right to enforce the contract terms as written. (2) We may at your request and at our option add subsequent purchases to this contract. (3) You will allow us to inspect the goods at any reasonable time and notify us of any change of your address within 30 days. (4) If you are married, and sign this agreement, you agree that your separate property shall be liable for all unpaid sums due. (5) If we transfer this contract to an assignee, you will be given notice thereof and you agree that the assignee will have all our rights and remedies under the contract and you agree to pay all that is still owed under this contract at all times and in the amounts to the assignee. (6) That all of the agreements between us and you are set forth in this contract and no modification of this contract shall be valid unless it is made in writing and signed by you and us. (7) That any provision of this contract which may be held invalid shall not mean that this contract is unenforceable and the remaining provisions of this contract shall continue to be binding.
NOTICE
ANY HOLDER OF THIS 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.
NOTICE TO BUYER: (1) Do not sign this agreement before you read it or if it contains any blank spaces to be filled in. (2) You are entitled to a completely filled-in copy of this agreement. (3) You can prepay the full amount due under this agreement at any time and obtain a partial refund of the finance charge if it is $1 or more. Because of the way the amount of this refund will be figured, the time when you prepay could increase the ultimate cost of credit under this agreement. (4) If you desire to pay off in advance the full amount due, the amount of the refund you are entitled to, if any, will be furnished upon request.
If you have purchased credit disability insurance in connection with this transaction, the following claim procedures apply.
CLAIM PROCEDURE
If you become disabled, tell us (your creditor) right away (We advise you to send this information to the same address which you are normally required to send your payments unless a different address or telephone number is given to you in writing by us as the location where we would like to be notified.) We will tell you where to get claim forms. Send in the completed form to the insurance company as soon as possible and tell us as soon as you do.
If your disability insurance covers all of your missed payment WE CANNOT TRY TO COLLECT WHAT YOU OWE OR FORECLOSE UPON OR REPOSSESS ANY COLLATERAL UNTIL THREE CALENDAR MONTHS AFTER your first missed payment is due or until the insurance company pays or rejects your claim, whichever comes first. We can, however, try to collect, foreclose, or repossess if you have money due and owing us or are otherwise in default when your disability claim is made or if a senior mortgage or lienholder is foreclosing.
If the insurance company pays the claim within the three calendar months, we must accept the money as though you paid on time. If the insurance company rejects the claim within the three calendar months or accepts the claim within the three calendar months as a partial disability and pays less than for a total disability, you will have 35 days from the date that the rejection or the acceptance of the partial disability claim is sent to pay past due payments, or the difference between past due payments and what the insurance company pays for the partial disability plus late charges. You can contact us, and we will tell you how much you owe. After that time, we can take action to collect or foreclose or repossess any collateral you may have given.
If the insurance company accepts your claim but requires that you send in additional forms to remain eligible for continued payments, you should send in these completed additional forms no later than required. If you do not send in these forms on time, the insurance company may stop paying, and we will then be able to take action to collect or foreclose or repossess any collateral you may have given.
TO: Buyer named and the address shown on the reverse side.
The Security Agreement executed by you and the Seller named on the reverse side in connection with the secured property described, and providing for payment of the Total Sale Price as indicated on the reverse side hereof, has been assigned to Assignee named below. All payments on said Agreement may be made in person at office below or by mail to the office shown on the enclosed payment book. If you have any complaints or objections to make, you should notify us at this time. Such notice must be made in writing.
NOTICE OF ASSIGNMENT COPY SENT DATE SENT SIGNED BY
Name of Assignee Address
FORM NO. 160 (REV. 1/97) BACK PART 3
Not For Reproduction