A Washington Franchise Impound Agreement is a contract used by lenders in the State of Washington to protect their interests when providing financing to a borrower for the purchase of a motor vehicle. The agreement stipulates that the borrower will keep the vehicle in their possession and that any lien holder, such as a bank, credit union, or other lender, will have the right to repossess the vehicle in the event of default. The agreement also outlines the borrower’s responsibilities, such as making payments on time, maintaining insurance, and notifying the lender of any changes in address or contact information. There are two types of Washington Franchise Impound Agreements: the standard agreement which is used for most vehicle purchases and the special agreement which is used for vehicles purchased with a loan from a franchise dealer. Both types of agreements provide the lender with the security that the vehicle will remain in the borrower’s possession and that the loan payments will be kept up to date.