Bill Of Sale Loan Agreement for New Zealand

Bill Of Sale Loan Agreement Template for New Zealand

A comprehensive legal document governed by New Zealand law that combines a loan agreement with a bill of sale, creating a security interest in personal property while allowing the borrower to retain possession. The document establishes the terms of the loan, including repayment schedules, interest rates, and default provisions, while simultaneously transferring legal title of the property to the lender as security. It complies with the Credit Contracts and Consumer Finance Act 2003 and the Personal Property Securities Act 1999, incorporating mandatory disclosure requirements and registration provisions.

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What is a Bill Of Sale Loan Agreement?

A Bill of Sale Loan Agreement is a specialized financial instrument used in New Zealand when a lender provides funding secured against personal property, with the borrower retaining possession while the lender holds legal title. This document is particularly useful for asset financing, vehicle loans, equipment financing, and similar transactions where the borrowed item serves as security. The agreement must comply with New Zealand's Credit Contracts and Consumer Finance Act 2003, Personal Property Securities Act 1999, and related regulations. It includes comprehensive details about the loan terms, security arrangements, borrower obligations, enforcement rights, and mandatory disclosure requirements. The document is structured to protect both lender and borrower interests while ensuring regulatory compliance.

What sections should be included in a Bill Of Sale Loan Agreement?

1. Parties: Identifies the lender and borrower with their full legal names and addresses

2. Background: Sets out the context of the loan and the security arrangement through bill of sale

3. Definitions: Defines key terms used throughout the agreement

4. Loan Details: Specifies the loan amount, interest rate, term, and purpose

5. Security Interest: Details of the property being used as security and confirmation of the bill of sale arrangement

6. Repayment Terms: Payment schedule, method of payment, and early repayment provisions

7. Borrower's Covenants: Borrower's obligations regarding the secured property and loan repayment

8. Events of Default: Circumstances constituting default and consequences

9. Enforcement Rights: Lender's rights and remedies upon default

10. General Provisions: Standard contract terms including notices, amendments, and governing law

What sections are optional to include in a Bill Of Sale Loan Agreement?

1. Guarantor Provisions: Required when a guarantor is securing the loan

2. Insurance Requirements: Required when specific insurance must be maintained on the secured property

3. Special Conditions: Used when there are unique terms specific to this loan arrangement

4. Assignment Rights: Include when either party may need to assign their rights under the agreement

5. Prepayment Provisions: Detailed early repayment terms when these differ from standard terms

What schedules should be included in a Bill Of Sale Loan Agreement?

1. Schedule 1 - Property Description: Detailed description of the property subject to the bill of sale

2. Schedule 2 - Payment Schedule: Detailed repayment schedule including dates and amounts

3. Schedule 3 - Initial Disclosure Statement: Mandatory disclosure information required under the CCCFA

4. Schedule 4 - Special Conditions: Any special terms or conditions applicable to this specific agreement

5. Appendix A - Property Valuation: Independent valuation of the security property if required

6. Appendix B - Insurance Details: Details of required insurance coverage for the security property

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Financial Services

Banking

Legal Services

Asset Finance

Consumer Lending

Commercial Lending

Automotive Finance

Equipment Finance

Agricultural Finance

Relevant Teams

Legal

Compliance

Credit

Risk Management

Operations

Collections

Document Management

Customer Service

Finance

Commercial Lending

Business Development

Relevant Roles

Credit Manager

Loan Officer

Legal Counsel

Compliance Officer

Risk Manager

Financial Advisor

Collections Manager

Credit Analyst

Document Controller

Property Manager

Asset Manager

Finance Manager

Commercial Lending Specialist

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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