Lender To Lender Financing, Inc. 27322 23 Mile Road, Suite 5 Chesterfield, Michigan 48051 Phone: (586) 598-1634 Servicing Agreement
Lender
To Lender Financing, Inc.
27322 00
Xxxx Xxxx, Xxxxx 0
Xxxxxxxxxxxx,
Xxxxxxxx 00000
Phone:
(000) 000-0000
Service
Agreement dated as of _______________________ is made between Lender to Lender
Financing,
Inc. dba Lender Financing with offices at 00000 00 Xxxx Xx. Xxxxx 0,
Xxxxxxxxxxxx, Xxxxxxxx
00000 and ___________________________________________, a _________________________
Corporation, Partnership, LLC or a Sole Proprietorship located at _______________________________________________________________
City,
State, and Zip
Code___________________________________________________.
Definitions:
Cost: Includes all cost
outside of normal internal collection cost. Any Money paid to outside
vendors,
state or local agencies to assist in collections as well as lawyer fees that are
charged to Lender
Financing.
Fraud: Any and all statements
that are not accurate in writing or verbal.
Collections: All net monies
received from customers to servicer with respect to the accounts of selling
dealer.
Receivable: Refers to all
contracts that are executed with a customer and sent to Lender Financing
for funding and or servicing.
Net: Refers to monies
collected after bad or nsf checks or money orders, and or expenses for
collections
and or legal fees as well as Lender Financing Collection Fees.
Agreement:
Receivable Acceptance: Any and
all of the contracts that are submitted from a dealer must be correct
and the seller will be responsible for accuracy of the contracts and any
accompanying paperwork
that is required by the state of domicile and or any other regulatory
agency.
Advance: The seller may
receive a pre determined amount of money and accept that money as payment
for the sales contract that is given to Lender Financing. This will be a loan on
future payments
of automotive sales contracts submitted to Lender Financing.
Payment
Center:
I
understand that Lender Financing is a payment center that will fund on contracts
and will assist in
collections. I also understand that the dealership is solely and totally
responsible for the sales and the
financing of each and every contract.
Lender Financing: Lender
Financing will have and may exercise all rights and remedies to collect
all monies owed to Lender Financing.
Lease Sales Tax: Sales tax on
the down payment shall be submitted to Lender Financing with each deal
submitted.
All other taxes: The dealer is
responsible for all other taxes other than monthly sales tax for leases
which will be deducted from the payment each month by Lender
Financing.
Selling Off of Accounts: With
the consent of the selling dealer. Lender Financing will have the option to
sell off accounts that have been assigned to Lender Financing. The proceeds from
the initial
sale will be split after all cost and expenses 80% to the dealer’s pool and 20%
to Lender Financing.
Legal: After a reasonable time
trying to collect and or repossesses the vehicle without success the
account will be turned over to legal collections. Once the vehicle is turned
over to legal the proceeds
will be split 65% to the dealer and 35% to Lender Financing after all cost,
legal or otherwise.
Repossession of Vehicle: Once
the vehicle is repossessed and sold at auction the proceeds will be split
after repossession and representation cost are recovered, 80% for the selling
dealer
and 20% to Lender Financing.
After Repossession: All net
monies collected will be split 65% for the selling dealer and 35% to
Lender
Financing.
Duties of the Selling Dealer:
The selling dealer represents that all documents and statements
made in
any transaction are true and correct. In the event there is any
misrepresentation (fraud), the
selling dealer is held responsible and will be in violation of this contract if
not corrected within 7
days.
Acceptance of contracts/receivables:
Lender Financing will from time to time inspect contracts delivered
from the selling dealer. If Lender Financing does not feel the deal is as
represented, Lender
Financing may reject the receivable submitted. If inaccuracies are missed in the
initial inspection
of the paperwork the selling dealer is responsible for all errors and
liabilities related to the
contracts and paperwork. Lender Financing will also have the right to accept of
reject any and all
contracts.
Account status: Will be in
three categories, Acceptable
accounts that are on time. In Question will be
up to 5 days late on payments and Collection Account which will
be 6 days late or beyond.
Distribution of Funds Collected:
All monies received as payments toward qualifying receivables
will be applied as follows:
First
Lease Sales Tax Paid (if applicable)
Second:
20% to Lender Financing
Third: To
reimburse servicer for all collection cost.
Forth:
Balance of the payments to repay advances and the excess money to the
dealership.
Indemnities: The selling
dealer will hold harmless the servicer from any and all cost claims and
liabilities
arising out of or resulting from collections of contracts and or repossession.
Lender Financing will be responsible for collections. In the event of gross
negligence
related to collecting and/or repossession ordered by Lender Financing, Lender
Financing
will take full responsibility.
Confidentiality: Any
authorized selling dealer must keep all materials and information to
themselves
and under no circumstances give any information to anyone without express
written consent
from Lender Financing. Without written consent from Lender Financing the selling
dealer
will be in violation of the servicing agreement.
Violation of Contract/Servicing
Agreement: Any violation of the service contract will result in
loss of
any additional revenues earned through Lender Financing. The selling dealer will
be required
to pay Lender Financing all cost plus 20% servicing fees of the entire accounts
receivable,
plus the gross advance balance.
Merger or consolidation: Any
merger or consolidation will succeed to the business of the servicer
and shall be the successor to this agreement.
Resignation as Servicer:
Lender Financing may resign at any time without reason or cause and
must give
a 15 day written notice. The selling dealer must pay Lender Financing all cost
and advances
plus 20% servicing fee on the entire accounts receivable balance within 15 days
of termination.
Termination by Dealer: If the
selling dealer wants to terminate this agreement and discontinue doing
business with Lender Financing the dealer may do so by notifying Lender
Financing in writing.
If the selling dealer would like their account receivables, the selling dealer
may do so by paying
Lender Financing all related advances, 20% of all accounts receivables, plus any
cost related
to collections. If the selling dealer would like Lender Financing to complete
collections the
selling dealer will receive net collections of 80% and Lender Financing will
receive 20% until
after repossessions.
Set Off: Lender Financing may
at any time apply costs to the account/ accounts of the selling dealer
that resulted from collections. In the event accounts are not kept current
Lender Financing may pool
all of the accounts.
Pooling of Accounts: Lender
Financing will pool all accounts. When the profits are above the gross
funded and all expenses are paid, the dealership will receive their monies
accordingly.
Collections: All monies shall
pass through Lender Financing. If a payment is made at the dealership
the entire amount of that and all payments shall be paid to Lender Financing. In
no way will
Lender Financing recognize any payment until the payment is in the hands of
Lender Financing.
Delegation of Duties: Lender
Financing may at its discretion hire outside assistance to assist in
collections
and or repossessions.
Complete Agreement: This
agreement is the complete agreement and supersedes any and all prior
agreements oral or written. This agreement may not be altered without the
written consent of both
parties.
This agreement is agreed and accepted
on only when both parties have signed this agreement. The parties hereto
have duly executed this Agreement effective as of the date first set forth. Each
of the parties acknowledge that they have thoroughly read and understand this
agreement and that they have been advised of their right to consult with and
have consulted with an attorney, or knowingly and voluntarily wave such right,
and have chosen to execute this
Agreement.
By
signing this agreement the parties have caused this agreement to be executed by
their respective
officers as of the day and year these agreements are signed.
Dealership:
__________________________ Date: _________________________
Signed
By: _________________________ Print: __________________________
Title:
______________________________
Lender To
Lender Financing, Inc.
Signed
By: ________________________________ Date: ________________________
Title:
_____________________________________ Print Name:
___________________
