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Title Loan Agreement for the United States

Title Loan Agreement Template for United States

A Title Loan Agreement is a legal document used in the United States that establishes the terms and conditions under which a lender provides a loan secured by the borrower's vehicle title. This agreement outlines the loan amount, interest rate, repayment terms, and the lender's security interest in the vehicle. It must comply with federal regulations including the Truth in Lending Act and state-specific lending laws, which vary significantly by jurisdiction.

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Title Loan Agreement

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What is a Title Loan Agreement?

The Title Loan Agreement serves as a crucial document in secured lending transactions where a vehicle serves as collateral. This agreement type is commonly used when individuals need quick access to funds and are willing to use their vehicle title as security. The document must carefully comply with both federal regulations and state-specific requirements, which can vary significantly across jurisdictions. Title Loan Agreements typically include detailed vehicle information, loan terms, repayment schedules, and default provisions, while also incorporating mandatory consumer protection disclosures.

What sections should be included in a Title Loan Agreement?

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

2. Background: Brief context about the loan purpose and vehicle serving as collateral

3. Definitions: Key terms used throughout the agreement including 'Collateral', 'Loan Amount', 'Interest Rate'

4. Loan Terms: Principal amount, interest rate, payment schedule, and term of the loan

5. Collateral Description: Detailed description of the vehicle including make, model, year, VIN, and current mileage

6. Security Interest: Declaration of lender's security interest in the vehicle

7. Borrower's Representations: Borrower's warranties regarding vehicle ownership, condition, and insurance

8. Default Provisions: Conditions constituting default and lender's remedies

What sections are optional to include in a Title Loan Agreement?

1. Insurance Requirements: Additional specifications for insurance coverage beyond minimum requirements

2. Early Repayment Terms: Conditions and provisions for early loan payoff including any penalties or incentives

3. Vehicle Use Restrictions: Specific limitations on vehicle use, location, or operation during loan term

What schedules should be included in a Title Loan Agreement?

1. Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Vehicle Condition Report: Documentation of vehicle condition at loan inception

3. Truth in Lending Disclosures: Federal and state-required lending disclosures

4. Insurance Certificates: Copies of required insurance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses



























Industries

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms, APR calculations, and standardized format for presenting lending information to borrowers

Fair Credit Reporting Act (FCRA): Federal legislation governing the collection, dissemination, and use of consumer credit information in title loan applications

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending practices based on race, color, religion, national origin, sex, marital status, age, or public assistance status

Military Lending Act (MLA): Federal protection for active-duty service members and their dependents regarding loan terms and interest rates

FTC Regulations: Federal Trade Commission rules governing fair lending practices and consumer protection in title loan transactions

State Title Loan Laws: State-specific regulations governing title loan operations, including prohibitions, restrictions, and operational requirements

State Usury Laws: State-specific limitations on maximum interest rates and finance charges that can be applied to title loans

State Disclosure Requirements: State-mandated information that must be provided to borrowers in title loan agreements

State Licensing Requirements: Regulations governing the licensing and registration of title loan lenders at the state level

State Repossession Laws: State regulations governing the process and procedures for vehicle repossession in case of default

UDAP Laws: Unfair and Deceptive Acts and Practices laws protecting consumers from predatory lending practices

Vehicle Code Requirements: State-specific regulations regarding vehicle ownership, titles, and liens in title loan transactions

UCC Article 9: Uniform Commercial Code provisions governing secured transactions, including the creation and enforcement of security interests in vehicles

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