12. DEFAULT. You will be in default and we may terminate this contract early if: (a) you have given false or misleading information on your credit application; (b) you do not make a payment when it is due; ( c ) a lien or other claim is made against this contract or the vehicle; (d) a bankruptcy petition is filed by or against you; (e) the vehicle is seized by any local, state or federal government or authority; (f) you alter or fail to repair or maintain the vehicle as required; (g) you do not maintain the required insurance coverage; (h) you do not comply with any of the contract terms; and/or (i) you breach any promise, representation or warranty you have made in this contract.
You agree to be liable, to the extent allowed by law, for reasonable attorney fees and costs incurred by us as a result of your default. Regardless of any language to the contrary, you are only liable for reasonable attorney fees if we hire an attorney that is not one of our salaried employees.
If you default we may:
Require you to pay the unpaid Amount Financed, the earned and unpaid part of the finance charge, and all other amounts due; sue you to collect the amount you owe; without the use of force or other breach of the peace, enter or have anyone we choose enter the premises where the vehicle may be and, lawfully repossess (take back) the vehicle, including equipment and accessories; take good found in the vehicle and hold them for you for 30 days, and if you do not claim the goods during that period, we can dispose of them and have no liability to you; and cancel any Credit Life, Credit Disability, Guaranteed Automotive Protection Coverage, Extended Warranty, or other optional insurance/;coverage financed under this contract and apply the refunded premium to your outstanding balance.
If we repossess the vehicle, and we are not precluded by law, we will send you a notice stating that you may redeem the vehicle and the amount needed to redeem. To redeem the vehicle, you must pay us the net amount owed under the contract plus all collection and legal costs, including reasonable attorney fees as provided above and court costs, to the extent permitted by applicable law. You may redeem the vehicle, until we sell it. If you do not redeem the vehicle, we may sell it or otherwise dispose of the vehicle, The net proceeds (the money from the sale, less allowed expenses) will be subtracted from the amount you owe us. The allowed expenses are those expenses, fees, and all legal costs that we are entitled to by law as a result of any lawful activity to obtain possession of, recondition, store and dispose of the vehicle after default. If, after we apply the net proceed to what you owe, there is money left, we will pay it to you. If the money from the sale is not enough to cover the amount you owe us, you or anyone who has succeeded to your obligation will pay what is still owed plus the highest lawful rate of interest unless (1) you bought the vehicle primarily for a personal, family or household purpose and (2) the unpaid balance of the contract at the time of default is less than $2,000
Posted 07 August 2007 - 10:19 AM
Posted 10 August 2007 - 03:54 PM
4. IF YOU PAY LATE OR BREAK YOUR OTHER PROMISES a. You may owe late chares. You will pay a late charge on each late payment as shown on the front. Acceptance of a late payment or late charge does not excuse your late payment or mean that you may keep making late payments. If you pay late, we may also take the steps described below. b. You may have to pay all you owe at once. If you break your promises (default), we may demand that you pay all you owe on this contract at once. Default means: 1. You do not pay any payment on time: 2. You start a proceeding in bankruptcy or one is started against you or your property: or 3. You break any agreements in this contract. The amount you will owe will be the unpaid part of the Amount Finance plus the earned and unpaid part of the Finance Charge, any late charges, and any amounts due because you defaulted. c. You may have to pay collection costs. If we hire an attorney to collect what you owe, you will pay the attorney’s fee and court costs, as the law allows. d. We may take the vehicle from you. If you default, we may take (repossess) the vehicle from you if we do so peacefully and the law allows it. If you vehicle has an electronic tracking device, you agree that we may use the device to find the vehicle. If we take the vehicle, any accessories, equipment and replacement parts will stay wit the vehicle. If any personal items are in the vehicle, we may store them for you at your expense. If you do not ask for these items back, we may dispose of them as the law allows. e. How you can get the vehicle back if we take it. If we repossess the vehicle, you may pay to get it back 9redeem). We will tell you how much to pay to redeem. Your right to redeem ends when we sell the vehicle. f. We will see the vehicle if you do not get it back. If you do not redeem, we will sell the vehicle. We will send you a written notice of sale before selling the vehicle. We will apply the money from the sale, less allowed expenses, to the amount you owe. Allowed expenses are expenses we pay as a direct result of taking the vehicle, holding it, preparing it for sale, and selling it. Attorney fees and courts costs the law permits are also allowed expense. If any money is left (surplus), we will pay it to you. If money from the sale is not enough to pay the amount you owe, you must pay the rest to us. If you do not pay this amount when we ask, we may charge you interest at the highest lawful rate until you pay. g. what we may do about optional insurance, maintenance, service, or other contracts. This contract may contain charges for optional insurance, maintenance, service, or other contracts. If we repossess the vehicle, we may claim benefits under these contract and cancel them to obtain refunds of unearned charges to reduce what you owe or repair the vehicle. If the vehicle is a total loss because it is confiscated, damaged, or stolen, we may claim benefits under these contracts and cancel them to obtain refunds of unearned charges to reduce what you owe. h. Dishonored Check Charge. If you try to pay any portion of an amount you owe with a check that is dishonored, we may make a separate demand that you pay a service charge. The charge will be $25 if the check amount is $50 or less; $30 if the check is over $50 but not more than $300; $40 if the check amount is over $300.
Posted 15 August 2007 - 09:17 AM
From a Volkswagen Lease Contract.
DEFAULT AND REMEDIES
A. Default: You will be in Defaultif (1) You fail to make any payment when due; (2) You fail to maintain the required insurance; (3) You file for bankruptcy; (4) the Vehicle is seized; (5) You have provided false or misleading information in Your credit application for this Lease; (6) upon Your death or incapacity; (7) if You are a corporation, upon Your dissolution; (8) You fail to keep any other agreement in the Lease, Your default liability will be calculated as set forth in the paragraph covering Early Termination.
B. Remedies: If You Default, Holder may end the Lease and take the Vehicle back in accordance with state law. Holder may go onto Your property to peacefully retake the Vehicle. Holder's repossession will not release You from Your lease obligations. You will pay costs, expenses and reasonable attorneys' fees which Holder incurred to obtain, hold, and sell the Vehicle, collect amounts due and enforce Holder's rights under this Lease to the extent permitted by law.
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