Tri Party Agreement Car (Finance) Template for India

The Tri Party Agreement Car (Finance) is a crucial document used in Indian vehicle financing transactions where three parties - the buyer, dealer, and financial institution - need to establish their respective rights and obligations in a single agreement. This document becomes necessary when a vehicle purchase is financed through a bank or financial institution, requiring coordination between the sale and financing aspects. It includes detailed provisions for vehicle specifications, loan terms, security creation, insurance requirements, and payment mechanisms, all compliant with Indian banking regulations and motor vehicle laws. The agreement serves as both a sale deed and a loan agreement, incorporating necessary hypothecation clauses and ensuring proper documentation for vehicle registration with transport authorities. It's particularly important in India's automotive finance sector where clear documentation of vehicle ownership, financing terms, and security interests is essential for all parties' protection.

1. Parties: Identifies and provides details of all three parties: the Buyer/Borrower, the Dealer/Seller, and the Financial Institution/Lender

2. Background: Explains the context of the agreement - buyer's intention to purchase the vehicle, dealer's willingness to sell, and financier's agreement to provide funding

3. Definitions: Defines key terms used throughout the agreement including Vehicle, Loan Amount, EMI, etc.

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, chassis number, engine number, and other specifications

5. Financial Terms: Details of the loan amount, interest rate, tenure, EMI structure, and payment schedule

6. Dealer's Obligations: Responsibilities of the dealer including vehicle delivery, warranty, and documentation

7. Buyer's Obligations: Responsibilities of the buyer including payments, vehicle maintenance, and insurance requirements

8. Financier's Rights and Obligations: Responsibilities and rights of the financing institution including disbursement terms and security interests

9. Security and Hypothecation: Terms regarding the hypothecation of the vehicle to the financier and related security arrangements

10. Insurance: Requirements for comprehensive insurance coverage and claims process

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Conditions and process for termination of the agreement

13. Representations and Warranties: Statements of fact and assurances from all parties

14. Governing Law and Jurisdiction: Specifies Indian law as governing law and determines jurisdiction for dispute resolution

15. Notices: Process and addresses for serving notices between parties