Disclosure of credit terms should have the content and form required under the federal Truth in Lending Act (15 U.S.C.A. §§ 1601 et seq.) and applicable regulations (Regulation Z, 12 C.F.R. § 226), and under state consumer credit laws to the extent that they differ from the federal Act. In connection with specified installment sales and other consumer credit transactions, these enactments require written disclosure and advice as to finance charges, annual percentage rates and other matters relating to credit. Under the federal Act, the disclosures may be set forth in the contract document itself or in a separate statement or statements.
A federal notice regarding preservation of the consumer's claims and defenses is required on all consumer credit contracts by Federal Trade Commission regulation. 16 C.F.R. § 433.2. The notice must appear in 10-point bold type or print and must be worded as set forth in the above form.
A Tennessee Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle is a legal document that outlines the terms and conditions of financing a vehicle purchase in Tennessee. This agreement serves as security for the lender, ensuring that they have rights to the vehicle until the loan is fully paid off. The document provides protection to both parties involved in the transaction — the lender and the buyer. The Tennessee Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle typically includes the following key details: 1. Parties Involved: The agreement identifies the buyer (also referred to as the debtor) and the lender (also known as the secured party or creditor). 2. Description of the Vehicle: The agreement provides a detailed description of the vehicle being purchased, including make, model, year, identification number (VIN), and any other necessary information to accurately identify the vehicle. 3. Purchase Price: The document states the total purchase price of the vehicle, including any taxes, fees, or additional charges. This amount is typically divided into down payment and installment payments. 4. Installment Payments: The agreement specifies the number of installment payments, their frequency, and the amount required for each payment. It also outlines the payment due dates and any late payment penalties or fees. 5. Interest Rate: The document states the applicable interest rate for the loan. Tennessee's law provides guidelines for maximum interest rates that can be charged on consumer loans. 6. Default and Repossession: The agreement explains the consequences of loan default, including potential repossession of the vehicle by the lender. It outlines the specific conditions under which the lender can repossess the vehicle and the procedures they must follow. 7. Insurance Requirements: The document may specify the type and amount of insurance coverage that the buyer must maintain on the vehicle throughout the loan term. 8. Governing Law: The agreement states that it is governed by Tennessee law and identifies the county where any legal disputes would be resolved. In addition to the standard Tennessee Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle, there might be different types specific to certain circumstances or parties involved, such as: 1. Security Agreement for Co-Signer: This type of agreement is used when another individual (the co-signer) guarantees the loan repayment in case the primary buyer defaults. 2. Security Agreement for Dealerships: This agreement is tailored for car dealerships that provide financing options to their customers. It may include additional clauses to protect the dealership's interests and outline their responsibilities regarding loans and titles. 3. Security Agreement for Private Party Sales: If the vehicle transaction takes place between two private individuals without dealership involvement, a different agreement may be used. This agreement would need to conform to Tennessee laws and cover the necessary provisions. Overall, a Tennessee Security Agreement for Retail Installment Sale of Automobile, Car or Motor Vehicle is a legally binding document that protects both the lender and the buyer in a vehicle financing transaction, ensuring transparency and accountability throughout the process.
