Car Loan Security Agreement Template for New Zealand

The Car Loan Security Agreement is essential for financial institutions and lenders operating in New Zealand's consumer credit market. It is used when providing finance for vehicle purchases and must comply with strict regulatory requirements under New Zealand law, particularly the Credit Contracts and Consumer Finance Act 2003 and Personal Property Securities Act 1999. The document combines credit contract elements with security arrangements, ensuring the lender has a registered security interest in the financed vehicle while providing borrowers with all mandatory disclosures and protections. It includes comprehensive details about the loan terms, vehicle specifications, borrower obligations, enforcement rights, and insurance requirements. This agreement is crucial for protecting the lender's interests while ensuring transparency and fairness for borrowers in accordance with New Zealand's consumer protection framework.

1. Parties: Identifies the lender and borrower with their full legal names and addresses

2. Background: Sets out the context of the loan and security arrangement, including the purpose of the loan for vehicle purchase

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

4. Loan Details: Specifies the loan amount, interest rate, term, and repayment schedule as required by CCCFA

5. Security Interest: Creates and defines the security interest in the vehicle under PPSA requirements

6. Vehicle Details: Detailed description of the vehicle including make, model, year, VIN, registration number

7. Borrower's Obligations: Sets out the borrower's responsibilities including vehicle maintenance, insurance, and prohibited actions

8. Payment Terms: Details of payment arrangements, including method, frequency, and consequences of default

9. Default and Enforcement: Specifies events of default and the lender's enforcement rights

10. Insurance Requirements: Mandatory insurance requirements and procedures for insurance claims

11. General Terms: Standard contract terms including amendments, notices, and governing law