What form do I need for Sale of Vehicle in Alabama?
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Answer:
USLegaforms offers a wide variety of forms to suit your preferences for the terms of the loan. A promissory note may be secured or unsecured. When it is secured, it means that property, called collateral, may be taken by the lender if the borrower fails to pay the loan payment. If the debtor files bankruptcy, the lender 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. Collateral may be many different types of property, such as shares of stock of a company, inventory, accounts receivable, etc.
A promissory note may provide for payments to be made in installments or in a lump sum. The terms may provide for a series of smaller payments at the beginning of the loan period and a larger balloon payment at the end of the loan period. The option for a confessed judgment agreement, also called a cognovit note, may also be included. A confessed judgment agreement requires the debtor not to claim defenses and agree to have a judgment entered against him if he fails to pay and the matter is taken to court.
A bill of sale is a legal document that transfers title to a new owner, typically indicating that a contract was formed. Sometimes a bill of sale is stated as being conditional. A person may deposit proceeds from a sale of a vehicle in various types of accounts, such as a checking account or savings account. I suggest consulting with a local banker to discuss available options and interest rates.