This agreement contains a security agreement creating a security interest in the property being sold. A security interest refers to the property rights of a lender or creditor whose right to collect a debt is secured by property. A secured transaction is created by means of a security agreement in which a lender (the secured party) may take specified collateral owned by the borrower if he or she should default on the loan. Collateral is the property, that secures the debt and may be forfeited to the creditor if the debtor fails to pay the debt. Property of numerous types may serve as collateral, such as houses, cars, and jewelry. By creating a security interest, the secured party is also assured that if the debtor should go bankrupt he or she may be able to recover the value of the loan by taking possession of the specified collateral instead of receiving only a portion of the borrowers property after it is divided among all creditors.
The Uniform Commercial Code is a model statute covering transactions in such matters as the sale of goods, credit, bank transactions, conduct of business, warranties, negotiable instruments, loans secured by personal property and other commercial matters. Article 9 of the Uniform Commercial Code covers most types of security agreements for personal property that are both consensual and commercial. All states have adopted and adapted the entire UCC, with the exception of Louisiana, which only adopted parts of it.
The New Mexico Contract for the Sale of Personal Property — Owner Financed with Provisions for Note and Security Agreement is a legally binding document used for the sale of personal property in New Mexico where the seller provides financing to the buyer. This type of contract is commonly used in situations where the buyer may not have access to traditional financing options or prefers to work directly with the seller. The contract includes provisions for both a promissory note and a security agreement. The promissory note outlines the terms of the buyer's repayment plan, including the principal amount, interest rate, installment payment amounts, and the duration of the loan. The security agreement, on the other hand, establishes the collateral for the loan and grants the seller certain rights in the event of default. There are various types of New Mexico Contracts for the Sale of Personal Property — Owner Financed with Provisions for Note and Security Agreement, depending on the specific details of the transaction: 1. Standard Contract: This is the most common type of owner-financed contract for the sale of personal property in New Mexico. It covers general provisions related to the sale, financing terms, and security agreement details. 2. Real Estate Contract: If the personal property being sold is located on real estate (such as a mobile home or a shed on a lot), this contract includes provisions specifically tailored for real estate transactions. 3. Vehicle Contract: This type of contract is applicable when the personal property being sold is a vehicle, such as a car, motorcycle, or recreational vehicle. It addresses specific details related to vehicle ownership and registration. 4. Business Asset Contract: In cases where the personal property being sold includes business assets, such as equipment, inventory, or intellectual property, this contract type includes provisions that cater to unique business-related considerations. It is essential to consult with a legal professional to ensure that the New Mexico Contract for the Sale of Personal Property — Owner Financed with Provisions for Note and Security Agreement is tailored to fit the specific circumstances of the transaction and comply with the state's laws and regulations.
