Austin LaFave v. Route 66 RV's, Inc.

IN THE DISTRICT COURT OF ROGERS COUNTY STATE OF OKLAHOMA AUSTIN LaFAVE, Plaintiff, v. ROUTE 66 RV'S, INC., and MERRICK BANK CORPORATION, Defendants. Case No. CJ-2026-101 PETITION Plaintiff alleges and states as follows: 1. On October 17, 2024, Plaintiff purchased a 2021 Puma XLE 25HSC travel trailer from Route 66 RV's, Inc., (hereinafter “Route 66"), in Claremore, Rogers County, for the sum of $19,966.00. See Exhibit A. 2. Plaintiff paid $6,000.00 down and as a part of the transaction purchased an extended service agreement for $2,994.00. 3. The net amount financed was $17,169.00 through dealer arranged financing with Merrick Bank Corporation, a Utah corporation, doing business in Oklahoma (hereinafter “Merrick”) at 17.95% interest for 120 payments of $308.81 per month. See Exhibit B. 4. Plaintiff has made all payments through February, 2026. 5. The retail installment contract executed by Plaintiff contains the FTC Holder Rule provision subjecting the holder of the contract to all claims and defenses, to-wit: “Any holder of this consumer credit note is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained with the proceeds hereof.” 6. Route 66 has never delivered a certificate of title to Plaintiff as required under 47 O.S. §1105 and §1110. 7. Plaintiff cannot sell or trade the trailer due to lack of marketable title. 8. The trailer continues to depreciate while Plaintiff pays monthly payments and finance charges. COUNT I – BREACH OF CONTRACT 9. Route 66 breached the sales contract under 12A O.S. §2-301 and §2-401 by failing to transfer good title. 10. As a result of this breach, Plaintiff has suffered the following damages: A) Loss of marketability B) Depreciation of the subject travel trailer C) Loss of use of equity D) Finance charges paid E) Potential overpayment for extended service agreement and interest thereon F) Diminished resale value G) Attorney fees and costs COUNT II – BREACH OF WARRANTY OF TITLE 11. Route 66 breached the implied warranty of good title under 12A O.S. §2-312. 12. As a result of this breach, Plaintiff has suffered the damages set forth in paragraph 10, above, which are incorporated herein by reference. COUNT IV – CLAIMS AGAINST HOLDER (MERRICK BANK) 13. Pursuant to 12A O.S. §1-9-404 (Uniform Commercial Code) and 16 C.F.R. §433.2 (the FTC Holder Rule), Merrick is subject to Plaintiff’s claims and defenses. 14. Plaintiff incorporates by reference paragraphs 1-12 of this petition against Merrick and as a defense to the enforcement of the retail installment contract by Merrick. COUNT V – INJUNCTIVE RELIEF 15. Plaintiff seeks temporary and permanent injunction against defendants pursuant to 12 O.S. §1381 et seq., staying further payment obligations pending resolution/adjudication of this action. Plaintiff is entitled to relief that specifically authorizes cessation of payment obligation under the retain installment contract without adverse credit reporting. In conjunction with said relief, the court should make such orders as may be necessary to protect the collateral, including appointment of a receiver pursuant to 12 O.S. §1551 at Defendants’ expense, to hold the collateral pending resolution/adjudication of this action. PRAYER FOR RELIEF WHEREFORE, Plaintiff prays for judgment against defendants for damages as set forth herein, injunctive relief, an award of attorney fees pursuant to 12 O.S. §936 and 15 O.S. §761.1 if determined applicable, costs, and all equitable relief to which he may be entitled, in excess of $10,000.00. Respectfully submitted, BEN SHERRER LAW OFFICE, P.C. BY: BEN SHERRER, OBA #17557 3 N. Adair, Ste 8 Pryor Creek, Oklahoma 74361 918-825-8989 Telephone [email protected] Attorney for the Plaintiff Verification 12 O.S. § 426 I state under penalty of perjury under the laws of the state of Oklahoma the foregoing is true and correct. Austin LaFave 2/25/20 Date Pryor, Oklahoma Route 66 RVs, Inc. RETAIL PURCHASE AGREEMENT 26677 S HIGHWAY 66, UNIT C CLAREMORE, OK 74019 Phone#: (918) 283-7557 Fax#: (918) 720-0277 CUSTOMER INFORMATION Buyer : AUSTIN LAFAVE Co-Buyer : Buyer Home Phone : (539) 251-5555 Buyer Work Phone : (316) 619-5128 Co-Buyer Phone : Street Address : 11375 S 435 City, State Zip : LOCUST GROVE, OK 74352 Delivery Date : 10/17/2024 Account Number : 304555 Sales Person : RANDY CASE RETAIL UNIT N/U/D : USED Year : 2021 Make : Model : PUMA XLE 25BHSC Odometer : Color : Type : TT GVW : VIN : 5ZT2PUPB6M4011679 Stock Number : UC11679 Price : 19966.00 LIENHOLDER Name : MERRICK BANK Address : 10705 S JORDAN GATEWAY SOUTH JORDAN, UT 84095 Phone Number : (888) 545-3888 Account Number : TRADE 1 Year : Make : Odometer : Color : Type : Serial Number : WGT : Length : Tag # : Payoff To : Payoff : N/A TRADE 2 Year : Make : Odometer : Color : Type : Serial Number : WGT : Length : Tag # : INSURANCE Company : NATIONAL GENERAL INSURANCE Agent : NATIONAL GENERAL Phone : (800) 468-3466 Policy # : 000000 Effective Date : 10/15/2024 Expiration Date : 4/15/2025 ITEMIZATION BASE SELLING PRICE: 19966.00 Sales-Delivery Prep-All N/A N/A N/A N/A TOTAL ACCESSORIES : N/A RETAIL DISCOUNT : N/A RETAIL PRICE : 19966.00 TRADE ALLOWANCE : N/A TRADE PAYOFF : N/A NET TRADE : N/A CASH DOWN: 6000.00 REBATES/INCENTIVES : N/A DOWN PAYMENT : 6000.00 SUB TOTAL : 13966.00 TOTAL SALES TAX : N/A SUB TOTAL : 13966.00 TAG/TRANSFER/LIEN : 10.00 DOCUMENTATION FEE : 199.00 TOTAL FEES : 209.00 SUB TOTAL : 14175.00 ROADSIDE ASSISTANCE : N/A INS.PREMIUM : N/A GAP : N/A EXT SERVICE AGREEMENT : 2994.00 TIRE & WHEEL : N/A PAINT AND FABRIC : N/A TOTAL PRODUCTS/INS : 2994.00 CASH BALANCE : N/A AMOUNT TO FINANCE : 17169.00 WARRANTY STATEMENT: DEALER DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED: This vehicle is being sold by the Dealer "AS-IS", "WITH ALL FAULTS", and Dealer expressly disclaims all warranties, express or implied, including all implied warranties of merchantability or fitness for a particular purpose. The only warranty, limited warranty or service protection plan applicable to this sale will be from the manufacturer or third party as are specifically applicable to the Vehicle or which are specifically listed above, and no other. There are no warranties which extend beyond the description on the face hereof, or which extend beyond the manufacturer's or third party's warranties provided herewith. Dealer does not assume any obligation of the manufacturer or third party warranty, limited warranty, or service protection provider. By signing this document the Buyer either has made an examination and inspection of the property sold hereunder, or waives such examination and inspection. Dealer neither assumes, nor authorizes any other person to assume for Dealer, any liability in connection with the sale of this Vehicle and/or any related goods or services. I have read and accept the terms and conditions of this Agreement, including the terms and conditions that appear on page 2, and agree that this Agreement is complete and accurately reflects the agreement between the Dealership and myself. I further acknowledge receipt of a copy of this Agreement. This Agreement shall not become binding until accepted by an Authorized Dealership Representative. Buyer : X Date : 15/10/2021 ADDITIONAL TERMS AND CONDITIONS 1. Specific Terms As Used In This Agreement Have the Following Meanings: (a) “Seller” and “Dealer” either or both mean the Dealership that is identified on the front side of this Agreement and its authorized representatives; (b) “Buyer” and “Purchaser” either or both mean the party executing this Agreement as such on the face hereof; (c) “Vehicle” means the vehicle described on the front of this Agreement that Buyer is purchasing from Dealer; (d) “Agreement” means the Retail Purchase Agreement together with any documents integrated into this Agreement by reference made in this Agreement or in the document itself; and (e) “Trade-In Vehicle” means the Vehicle identified on the front of this Agreement which Buyer delivers to Dealer as a part of this transaction. 2. Contractual Disclosure Statement for used motor vehicles: If this Agreement includes the sale of a used motor vehicle, the information you see on the Buyers Guide form for the vehicle is part of this Agreement. Information on the Buyers Guide form overrides any contrary provisions in this Agreement; provided, however, that nothing contained in the Buyers Guide creates any warranty by Dealer, either express or implied. 3. Dealer’s Right to Alter the Price: Dealer reserves the right to alter the price of the Vehicle to Buyer after Dealer accepts this Agreement, if the Trade-In Vehicle is reappraised at a different price, new equipment is required by law, or if tax rate changes. If the price is increased by Dealer, the Agreement may be renegotiated or Buyer may cancel this Agreement. If the Agreement is cancelled and a used motor vehicle has been traded in as a part of the consideration for the Vehicle, the Trade-In Vehicle shall be returned to Buyer upon payment of a reasonable charge for storage and repairs (if any). If Dealer has sold the Trade-In Vehicle, Dealer will refund the agreed upon trade-in allowance, less any negative equity adjustment that Dealer has paid to a lien holder. Regardless of whether Dealer has sold the Trade-In Vehicle or returns it to Buyer, Buyer shall be responsible for paying Dealer the balance owed on the Trade-In Vehicle to the extent the balance exceeds the Trade-In allowance (if Dealer has paid the balance owed to the lien holder) and Dealer may keep any portion of the amount Buyer has paid to Dealer as a Deposit/Partial Payment to offset the amount Buyer owes Dealer. If the amount Buyer owes Dealer is greater than the amount of the Deposit/Partial Payment, Buyer agrees to pay the difference to Dealer. If the actual amount Buyer owes Dealer is less than the amount of the Deposit/Partial Payment, Dealer will pay the difference to Buyer. 4. Reappraisal of Trade-In Vehicle: If the Trade-In Vehicle is not to be delivered to Dealer until delivery of the Vehicle to the Buyer, the Trade-In Vehicle shall be reappraised at that time and the reappraised value shall determine the allowance made for the Trade-In Vehicle. If the appraised value is lower than the original allowance, Buyer may, if dissatisfied with the reevaluation, cancel this Agreement with full refund of any Deposit/Partial Payment, provided that such right to cancel is exercised prior to delivery of the Vehicle to the Buyer and surrender of the Trade-In Vehicle to the Dealer. 5. Trade-In Vehicle Information: Buyer agrees that a Certificate of Title or documents sufficient to enable Dealer to obtain a title to the Trade-In Vehicle in accordance with state law shall accompany any trade-in vehicle delivered by Buyer to Dealer in connection with this transaction. Buyer warrants that the Trade-In Vehicle delivered to Dealer is properly titled to Buyer, and unless otherwise noted on the front side of the Agreement, has never been titled or branded as salvage, junk, rebuilt, a lemon buyback, flood damaged, or other branded vehicle; that Buyer has the right to sell or otherwise convey such vehicle; that such vehicle is free and cleared of liens and encumbrances, except as may be noted on the front side of this Agreement; that all emission control equipment is on the Trade-In Vehicle and is in satisfactory working order; that the vehicle has not sustained any material damage; that the vehicle’s air bags (if equipped) are in satisfactory working order; and, unless Buyer notes otherwise, that Buyer has not removed any equipment from the vehicle that was on the vehicle at the time of appraisal and that the odometer reading shown is accurate, unless noted on this Agreement. 6. Failure to Perform Obligations: Except for a cancellation by Buyer under and in accordance with the provisions of paragraph 2 and/or 3 above, any failure by Buyer to perform Buyer’s obligations under this Agreement, including but not limited to any failure to take delivery of or to pay agreed upon price for the Vehicle, Dealer shall be permitted to retain from any cash deposit by the Buyer, an amount equal to any actual damages Dealer incurs due to Buyer’s default. If Buyer has delivered a Trade-In Vehicle to Dealer as part of this transaction, Dealer may return the Trade-In Vehicle to Buyer if Dealer has not already sold it. If Dealer has sold the Trade-In Vehicle, Dealer will refund the agreed upon trade-in allowance, less any negative equity adjustment that Dealer has paid to a Lien holder. Regardless of whether Dealer has sold the Trade-In Vehicle or returns it to Buyer, Buyer shall be responsible for paying Dealer the balance owed on the Trade-In Vehicle to the extent the balance exceeds the Trade-In allowance (If Dealer has paid the balance owed to the lien holder). If Trade-In Vehicle is returned, Buyer will be responsible for any reasonable expenses incurred by Dealer in connection with preparing or reconditioning the Trade-In Vehicle for sale. Dealer may keep any portion of the amount Buyer has paid to Dealer as a Deposit/Partial Payment to offset the amount Buyer owes Dealer. If the amount Buyer owes Dealer is greater than the amount of the Deposit/Partial Payment, Buyer agrees to pay the difference to Dealer. If the actual amount Buyer owes Dealer is less than the amount of the Deposit/Partial Payment, Dealer will pay the difference to Buyer. 7. Failure to Deliver Vehicle: Dealer shall not be liable for failure to deliver or delay in delivering the Vehicle covered by this Agreement where such failure or delay is due, in whole or in part, to any cause beyond control of or without the fault or negligence of Dealer. 8. Other Products and Lending Sources: Buyer is not required to purchase any optional accessories, products or services from Dealer, nor is the Buyer required to finance the Balance Due under this Agreement with a particular lending source. In the event this Agreement includes a charge for optional products or services for which Buyer must complete an application for coverage, and if, for any reason, such coverage cannot be provided, Buyer will receive a credit for the amount charged. If the cost of the product or service was included in the amount to be financed in connection with the transaction, then this credit will be applied to the outstanding balance Buyer owes to the lender. 9. Security Interest: Buyer agrees that Dealer has and shall retain a security interest in the vehicle which is the subject of this contract unless and until Dealer has received the full price of the contract, exclusive of any trade-in allowance, in legal tender, including conversion of any payment made by negotiable instrument into legal tender. Purchaser agrees that, at any time, so long as Dealer has a security interest in the vehicle, Dealer may exercise any rights to repossession and disposal of the Vehicle as is provided Dealer by law. 10. Applicable Law; Venue. This Agreement and any other documents related to this transaction shall be deemed executed and/or delivered by the Dealer in Rogers County, State of Oklahoma. Any issue or dispute related to this Agreement, any other document signed or provided in connection with this Agreement, or any other document signed, provided or pertaining to the transaction(s) contemplated by this Agreement, and the transaction(s) contemplated by this Agreement, are subject to the laws of the State of Oklahoma without regard to choice of law issues. Venue for any dispute arising from this Agreement shall lie exclusively in Rogers County, Oklahoma, whether sounding in tort or contract. 11. Entire Agreement; Modification or Amendments; Waiver; and Signing Other Documents. This Agreement and any documents provided in conjunction with the transaction(s) contemplated by this Agreement, and all documents referred to in this Agreement, comprise the entire agreement by and between the parties hereto. This Agreement represents the entire, integrated agreement between the parties, and supersedes all prior negotiations, proposals, representations, commitments, understandings, contracts or agreements made or entered into by the parties, either written or oral, with respect to the transaction(s) contemplated herein. Additionally, this Agreement may not be modified or amended except by a written instrument executed by all the parties hereto. Failure on the part of any party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or provisions, or for cancellation as provided herein. The Buyer agrees to sign any and all documents necessary to complete the terms of this Agreement and to complete the transaction(s) contemplated hereby. 12. Costs, Expenses and Attorney's Fees. In the event any action is brought to enforce, or for the breach of, any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including reasonable attorneys' fees, associated with such action 13. Partial Invalidity. If any part of any provision of this Agreement, or any document incorporated herein or related to the transaction(s) contemplated hereby, are found invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity, Merrick Bank® 10705 S. Jordan Gateway, Suite 200 South Jordan, UT 84095 SIMPLE INTEREST NOTE AND SECURITY AGREEMENT This is a consumer credit transaction. Non-negotiable consumer note. Borrower: Name and Address AUSTIN LAFAVE 11375 S 435 LOCUST GROVE, OK 74352 Co-Borrower: Name and Address N/A This agreement is a Simple Interest Note and Security Agreement ("Note"). In this Note, the words "you," "your," and "yours" refer to the Borrower and Co-Borrower. The words "we," "us," "our," and "Lender" refer to Merrick Bank, a Utah Industrial Bank, and its assignees. The word "Property" refers to the property described below. Promise to Pay. You promise to pay to us the "Amount Financed" shown below in U.S. Dollars plus daily simple interest on the outstanding principal balance at the Annual Percentage Rate identified below (the "Interest Rate") until paid in full. The Amount Financed is the Principal amount of the loan. You promise to make payments in accordance with the "Payment Schedule" below. You promise to make payments on or before the same day each month as the first payment due date shown in the Payment Schedule below. You promise to pay all other amounts that may become due under the terms of the Note. Each person who signs this Note as Borrower or Co-Borrower is jointly and severally liable for the sums owed under this Note. Property Description. As security for this loan, you are giving Lender a security interest in the following Property, and all additions and attachments: <table> <tr> <th>YEAR</th> <th>MAKE</th> <th>MODEL</th> <th>SERIAL NO.</th> <th>NEW/USED</th> </tr> <tr> <td colspan="4">2021 PUMA 25BHSC</td> <td>5ZT2PUPB6M4011679</td> <td>Used</td> </tr> </table> This loan is made by Merrick Bank and is subject to Utah law. RHODE ISLAND RESIDENTS ONLY: The term of this Contract is 120 and the rate of interest is 17.95%. Borrower Initials: ________ TRUTH-IN-LENDING DISCLOSURES <table> <tr> <th>ANNUAL PERCENTAGE RATE<br>The cost of your credit as a yearly rate.</th> <th>FINANCE CHARGE<br>The dollar amount the credit will cost you.</th> <th>Amount Financed<br>The amount of credit provided to you or on your behalf.</th> <th>Total of Payments<br>The amount you will have paid after you have made all payments as scheduled.</th> </tr> <tr> <td>17.950%</td> <td>$19,888.20</td> <td>$17,169.00</td> <td>$37,057.20</td> </tr> </table> Your Payment Schedule Will Be: <table> <tr> <th>Number of Payments</th> <th>Amount of Each Payment</th> <th>When Payments Are Due</th> </tr> <tr> <td>120</td> <td>$308.81</td> <td>Monthly, beginning on November 16, 2024</td> </tr> </table> Late Charge. If you do not make a scheduled payment in full within 5 days after it is due, you will pay a late charge equal to the greater of $35 or 5% of the unpaid amount of the late payment. Prepayment. You may prepay all or any portion of your debt under this Note at any time without penalty. Security Interest. You are giving a security interest in the Property being purchased. Additional Information. Please read this Note, including the remaining pages, for additional information about security interests, nonpayment, default, right to accelerate maturity, prepayment refunds and penalties, and any required repayment in full before the scheduled date. ITEMIZATION OF THE AMOUNT FINANCED You authorize us to pay the proceeds of your loan with us as follows: To: ROUTE 66 RVS INC. $ 17,169.00 26677 S HWY 66 UNIT C Claremore, OK 74019 (Dealer or Broker name and address) Amount Financed $ 17,169.00 The Amount Financed includes the following: 1. Cash Price of Property $ 19,966.00 Less Cash Down Payment $ 6,000.00 Less Net Trade-in Allowance $ 0.00 2. Subtotal $ 13,966.00 3. Fees Paid to Public Officials License Fee $ 0.00 Certificate of Title Fee $ 10.00 Registration Fee $ 0.00 Taxes $ 0.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 To State of Florida for Documentary Stamp Tax $ 0.00 4. Subtotal $ 10.00 5. Third Party Fees (Dealer or Broker) may retain or receive a portion of these amounts ........................ To N/A for Credit Life Insurance $ 0.00 To N/A for Credit Disability Insurance $ 0.00 To N/A for Gap Coverage $ 0.00 To ROUTE 66 RVS INC. for Document Prep $ 199.00 To AGWS for Vehicle Service Contract $ 2,994.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 To N/A for N/A $ 0.00 6. Subtotal $ 3,193.00 7. Amount Financed (2+4+6) $ 17,169.00 YOU CANNOT BE DENIED CREDIT SIMPLY BECAUSE YOU CHOOSE NOT TO BUY CREDIT INSURANCE. CREDIT LIFE INSURANCE, CREDIT DISABILITY AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE ARE NOT REQUIRED TO OBTAIN CREDIT. INSURANCE WILL NOT BE PROVIDED UNLESS YOU SIGN AND AGREE TO PAY THE ADDITIONAL CHARGE. Your decision to buy or not to buy credit insurance is not a factor in our approval of this extension of credit and is not a factor in the terms of the credit or related sale of the Property. You may purchase the insurance from an insurer or Insurance producer of your choice, subject only to our right to reasonably reject a given insurer or insurance producer. We may also impose reasonable requirements concerning the creditworthiness of the insurer and the extent of the coverage chosen as provided. Your choice of insurer or insurance producer will not affect our credit decision or credit terms in any way. If you chose to buy credit life and/or credit disability insurance, the premium is listed below and in the Itemization of Amount Financed. Credit life insurance pays the amount you would owe (if you made all payments on time) if you die within the policy term. If you did not make all payments on time, the credit life insurance policy may not satisfy the full amount that you owe. Credit Disability Insurance (during the policy term) provides a level monthly benefit equal to the monthly payment disclosed in the Payment Schedule, after the qualifying period, while you are disabled as defined in the policy. The term of any credit insurance policy you purchase is shown below. The insurance policy and certificate issued and delivered to you by the insurance company designate the insured person, provide the terms and conditions of your insurance contract and may limit the coverage provided. If you purchase credit life and/or credit disability insurance through the Seller, you must complete the following: The Seller provided me the disclosure above orally and in writing at the time I applied for credit. I want the credit insurance specified. *************************** Credit Life: __________ For Borrower ____________ For Co-Borrower ____________ For Both Borrowers Premium $ _______ Term (In Mos.) N/A *************************** Credit Disability: __________ For Borrower ____________ For Co-Borrower ____________ For Both Borrowers (Not available for Alabama borrowers) Premium $ _______ Term (In Mos.) N/A *************************** I WANT THE CREDIT INSURANCE SPECIFIED ABOVE: N/A Borrower N/A Date I WANT THE CREDIT INSURANCE SPECIFIED ABOVE: N/A Co-Borrower N/A Date Missouri Residents: You have a right to cancel credit insurance within 15 days of buying it and receive a full refund or credit for the credit insurance premium You may buy any of the following voluntary protection plans. They are not required to obtain credit, are not a factor in the credit decision, and are not a factor in the terms of the credit or the related sale of the Property. The voluntary protections will not be provided unless you sign and agree to pay the additional cost. Service Contract Term 48 months Price $2,994.00 Gap Waiver or Gap Coverage Term N/A Price $0.00 I WANT THE SERVICE CONTRACT SPECIFIED ABOVE: Borrower AUSTIN LAFAVE Date 10/17/2024 I WANT THE GAP COVERAGE OR GAP WAIVER SPECIFIED ABOVE: N/A Borrower N/A Date N/A Borrower N/A Date Missouri Residents: You have a right to cancel a Gap Waiver or Gap Coverage within 15 days of buying it and receive a full refund or credit for the charge of the Gap Waiver or Gap coverage IOWA AND KANSAS RESIDENTS: NOTICE TO CONSUMER. 1. DO NOT SIGN THIS NOTE BEFORE YOU READ IT. 2. YOU ARE ENTITLED TO A COPY OF THIS PAPER. 3. YOU MAY PREPAY THE UNPAID BALANCE AT ANY TIME WITHOUT PENALTY AND MAY BE ENTITLED TO A REFUND OF UNEARNED CHARGES IN ACCORDANCE WITH LAW. NOTICE TO WISCONSIN, AND ALL BORROWERS 1. DO NOT SIGN THIS NOTE BEFORE YOU READ THE WRITING BELOW AND ON THE FOLLOWING PAGES, EVEN IF OTHERWISE ADVISED. 2. DO NOT SIGN THIS IF IT CONTAINS BLANK SPACES 3. YOU ARE ENTITLED TO AN EXACT COPY OF THE NOTE YOU SIGN. 4. YOU HAVE THE RIGHT AT ANY TIME TO PAY IN ADVANCE THE UNPAID BALANCE UNDER THIS AGREEMENT AND YOU MAY BE ENTITLED TO A PARTIAL REFUND OF THE FINANCE CHARGE. ALABAMA RESIDENTS: CAUTION- IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. FOR MARRIED WISCONSIN BORROWERS: This obligation is or will be incurred in the interest of the marriage or the family. BORROWER: ________________________________ CO-BORROWER: ________________________________ IMPORTANT: THE TERMS AND CONDITIONS ON THE REMAINING PAGES OF THIS DOCUMENT ARE PART OF THIS NOTE. READ THESE TERMS AND CONDITIONS BEFORE SIGNING BELOW. YOU ACKNOWLEDGE THAT THIS NOTE CONTAINS AN AGREEMENT TO ARBITRATE, AND THAT YOU HAVE READ THAT AGREEMENT AND UNDERSTAND AND AGREE TO IT. BY SIGNING BELOW, YOU REPRESENT AND WARRANT THAT THE PROPERTY WILL NOT BE USED AS A RESIDENCE AND YOU ACKNOWLEDGE RECEIPT OF A COPY OF THIS AGREEMENT WITH ALL BLANKS COMPLETED. BORROWER: X ________________________________ AUSTIN LAFAVE DATE: 10/17/2024 CO-BORROWER: N/A DATE: N/A OTHER IMPORTANT PROVISIONS Loan and Payment. You agree to pay us all you owe under this Note in a timely manner. You agree to pay us even if the Property is damaged, destroyed, missing, or uninsured. You also agree to pay all other charges, if any (including without limitation all charges for repair bills, storage bills, taxes, assessments, fees, fines, and other charges which you or we incur), due upon demand or upon termination of this Note or as we otherwise designate. Any payment amount that you remit shall be applied in the manner required by applicable law. Our acceptance of partial payments will not modify the terms of this Note and will not constitute a waiver of any subsequent default. This Note documents a direct loan from us to you. To expedite the loan process, we have asked the seller of the Property ("Seller") or finance broker ("Broker") to prepare and obtain your signature on this Note. Seller or Broker have no authority to approve or make this loan, only we can do that. Seller or Broker is not our agent in connection with the sale of the Property or in connection with any down payment or trade-in arrangements or for any purpose whatsoever other than for preparing and obtaining your signature on this Note. No employee or agent of Seller or Broker is authorized to make any promises or agreements with you about this loan. Time is of the essence. This means that all required payments must be made on the day due and all other obligations must be performed on time. Finance Charges. This is a daily simple interest Note based upon 365 days in each year. The amount of interest you pay depends on when you make your payments. Your actual interest may be more than the disclosed Finance Charge disclosed in the Truth in Lending Disclosures if you make your payments late or in less than the scheduled amount. Prepayment. You may prepay the amounts you owe under this Note, in full or in part, at any time without penalty. If you tender a partial prepayment, at our discretion we may apply the prepayment amount to future monthly payments, the principal balance, or provide some other credit to your account reflecting the prepayment Risk of Loss. You agree that you will take the following action to protect our Property securing this Note: (a) Maintain the Property in good condition, reasonable wear and tear excepted; (b) Pay all taxes, fees, fines, bills, and any other charges assessed or levied against the Property, whether billed to us, to you, or another party; (c) Notify us immediately if the Property is impounded; (d) Protect the Property from misuse or confiscation; (e) Use the Property only in a manner that is not illegal or contrary to the terms of the insurance policies required by this Note; (f) Use the Property for personal, family or household purposes only, and not for any commercial or other purpose; (g) Keep the Property within the United States, unless you have our prior written consent to take it outside the United States; (h) Not sell, transfer, or assign your right, title, or interest in the Property without our prior written consent; and (i) Keep the Property free of any lien, encumbrance, or security interest other than ours unless you have our prior written consent. Security Interest. To secure your obligations under this Note, you give us a security interest in the Property, all accessions, attachments, accessories and equipment placed in or on the Property and all proceeds of the Property. You also give us a security interest in all money or goods received for the Property and all proceeds of any insurance policies, service and other contracts covering the Property, as well as proceeds of any insurance policies on your life or disability that are financed with the proceeds of this Note. The security interest secures payment of all amounts you owe under this Note and performance of your other agreements in this Note. You will not grant anyone else a security interest, lien or any other claim to the Property without our express prior written consent. You will sign your name on any documents necessary to properly record and perfect our security interest. To the extent permitted by applicable law, and unless you are a Pennsylvania resident, you authorize us as your attorney-in-fact to sign your name on any documents necessary to properly record and perfect our security interest should you fail to do so. You acknowledge an express intent to grant a security interest in the Property and hereby waive and abandon, to the extent permitted by law, all personal property exemptions granted upon the Property. We may, but are not required to: 1) pay taxes, insurance premiums, fees, expenses, charges or assessments relating to the Property; 2) satisfy liens on, or 3) make repairs to the Property if you have not done so as required by this Note. Any amounts we pay may be added to the balance you owe us and will be secured by the Property. We may demand that you pay these amounts immediately or add the amounts to the outstanding balance and allow you to pay installments, with interest at the rate provided under this Note to the extent permitted by law. NOTICE: BY GIVING US A SECURITY INTEREST IN THE PROPERTY, YOU WAIVE, TO THE EXTENT PERMITTED BY LAW, ALL RIGHTS PROVIDED BY LAW TO CLAIM SUCH PROPERTY EXEMPT FROM PROCESS. You agree that in the event of default, our right to repossess the Property includes, but is not limited to, the right to peacefully enter property you own or lease and you consent to our entry onto your property to exercise our rights. Further Assurances. From time to time you will sign and deliver to us any document and assurances we may require to maintain the priority of our security interest in the Property and to help us resell the Property if we repossess it. You will also take all measures required to file and maintain perfection of our security interest in the Property. Required Physical Damage Insurance. You must insure yourself and us for the term of this Note against loss of or damage to the Property with a policy in your name acceptable to us, with a deductible of not more than $500. You will maintain comprehensive fire, theft and collision coverage, insuring the Property for at least the Property’s fair market value or the outstanding balance under this Note, which ever is less. You will notify us promptly of any claims made under the insurance. If the Property is declared a total loss resulting in an insurance settlement for less than the total outstanding balance under this Note (including principal, interest, and any other charges), you will be liable to us for the difference. We may, if we want, use any insurance proceeds to reduce any amounts owing under this Note. You authorize us to adjust your losses and sign your name to any check draft or other papers necessary to obtain such insurance payments. You authorize any insurer to pay us directly. You will name us as loss payee and provide whatever evidence of insurance, including a copy of the policy or proof of payment of premiums, we request. Such insurance must provide for 10 days advance written notice to us before any cancellation or reduction in the insurance coverage. You have the option of furnishing the required amount of insurance through existing policies owned or controlled by you or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business within your state. Your choice of insurer or producer will not affect our credit decision or the credit terms in any way, except that we may impose reasonable requirements concerning the creditworthiness of the insurer and the scope of coverage chosen as provided in state law. We may refuse any insurance you offer, for reasonable, nondiscriminatory cause, as permitted by law. Whether or not the Property is insured, you will pay us all you owe under this Note even if the Property is lost, damaged beyond repair, or destroyed. Unless you are a Pennsylvania resident, you authorize us to act as your attorney-in-fact to endorse your name on any check we receive for insurance proceeds, to the extent permitted by law. LIABILITY INSURANCE COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE CAUSED TO OTHERS IS NOT INCLUDED IN THIS NOTE. You agree to endorse any check and sign any documents as necessary to effect the provisions in this section. Gap Coverage. In the event of theft or damage to the Property that results in a total loss, there may be a gap between the amount due under the terms of the Note and the proceeds of your insurance settlement and deductibles. You are liable for this difference. You have the option of purchasing Gap Coverage to cover the gap liability but are not required to do so. If this transaction contains a fee or premium for guaranteed automobile protection, all holders and assignees of this Note are subject to all claims and defenses which the consumer could assert against the seller of the GAP coverage resulting from the consumer’s purchase of guaranteed automobile protection. Late Charge and Returned Item Charge. You will pay a late charge as provided in the Truth in Lending Disclosures if you fail to make your payment on time. You agree to pay any costs we incur to collect any late payment, as allowed by law. We may assess a charge of $30 for each payment instrument you present to us which is dishonored or returned to us for any reason. In addition, with respect to such dishonored or returned payment instruments, you authorize us to initiate ACH debit entries for the amount of such payment, and you authorize your depository institution to debit the same from your deposit account. You agree that our authority with respect to ACH debit entries described in this section is coupled with an interest and is irrevocable until all of your obligations under this Note are satisfied. Default. To the extent permitted by applicable law, you will be in default if: (a) You fail to make any payment when due (or, if you are an Iowa or Virginia resident, if you fail to pay within 10 days of when the payment is due); (b) Any information you furnish in connection with this Note is false or materially misleading; (c) You fail to keep your promises under this Note or any other agreement with us; (d) You sell or transfer any interest in the Property; (e) You experience any financial change that we consider adverse and material; (f) You fail to meet any debt obligations as they become due; (g) Any proceeding is commenced or petition filed under any bankruptcy or insolvency law by or against you; (h) You die or become incompetent or incapacitated; (i) The Property is levied upon or seized under any legal process; (j) The Property is lost, stolen, or suffers substantial damage; or (k) You use the Property as a residence. If you are a resident of Idaho, Iowa, Kansas, Missouri, Nebraska, Rhode Island or South Carolina, except with respect to any failure to pay when due, you will be in default only to the extent that the prospect of payment, performance, or realization of collateral is significantly (or, for Iowa residents, materially) impaired by your action or inaction. If you are a resident of Massachusetts, you will be in default only to the extent your default is material and consists of a failure to make any payment when due or the occurrence of any event that substantially impairs the value of the Property. Substantial impairment may include the occurrence of an event listed above. If you are a resident of Wisconsin, you will be in default if: (1) You have outstanding an amount exceeding one full payment that has remained unpaid for more than 10 days after the due date of any payment; (2) You fail to make the first or last scheduled payment within 40 days of its due date; or (3) You have breached any other covenant of this transaction that materially impairs the collateral securing this Note or your ability to pay amounts due under this Note. Material impairment may include the occurrence of an event listed above. We bear the burden of establishing the prospect of significant or material impairment, where required by law. Rights and Remedies Upon Default. To the extent permitted by applicable law, if you are in default, we may, subject to any right you may have to cure such default, require you to pay at once the unpaid Amount Financed, the earned and unpaid part of the Finance Charge and all other amounts due under this Note. We may take back (repossess) the Property, with or without resort to judicial process. Unless required by applicable law, we will not notify you of our intention to repossess the Property. We may also take items of personal property found in the Property when we take back the Property and hold them for you. If you do not claim them within the time allowed by law, we will dispose of them in a commercially reasonable manner. We will have all rights, options, and remedies of a secured party under applicable law, and under this Note. If you default, you agree that we have all rights and remedies available to us under applicable law and this Note, including without limitation, the following (a) You will deliver the Property to us at our direction; (b) We may repossess the Property and to do so we may proceed without judicial process, if doing so does not breach the peace; (c) You authorize us, in our sole discretion, to make or have made any repairs that we deem necessary or desirable; (d) We may cancel any insurance or other products we financed for you, obtain a refund of unearned premiums or charges, and apply them to the outstanding balance under your Note to the extent permitted by law; (e) To the extent not prohibited by applicable law, and unless you are a Wisconsin or West Virginia resident, you agree to pay all costs and expenses we incur in collecting any late payment or in enforcing any term, condition, or covenant of this Note, including actual and reasonable attorneys' fees not exceeding 15% (or, if you are an Arkansas resident, 10%) of the outstanding balance due after default if the Note is referred to an attorney who is not our salaried employee and court costs, and disbursements. If you are a resident of Iowa, you agree to pay costs and expenses we incur in realizing upon our security interest, if allowed by law. If you are a resident of New Hampshire and you prevail in any action we bring against you to enforce this Agreement, or you bring against us, you will be entitled to receive reimbursement for your reasonable attorney's fees from us. Ohio residents will not be required to pay attorneys' fees. For New Jersey residents, notwithstanding the foregoing, if we bring an action for the collection of an amount in default under the terms of this Note, we may, in addition to the recovery of all court costs, reasonable attorney's fees and expenses of repossession and storing goods where so authorized by law, charge and collect from you other reasonable collection costs incurred, not to exceed 20% of the first $500 of the unpaid balance of the loan, 10% of the amount over $500 up to $2,000, and 5% of any amount in excess of $2,000. Sale of Repossessed Property. We will send you a written notice of sale at least ten (10) days before selling the repossessed Property. This notice will explain any right to cure or redeem the Property that you may have under applicable law. The sale proceeds will be used to pay our permitted costs and expenses and then to pay the amount you owe on this Note. Any money left will be paid to you unless the law requires that we pay it to someone else. If there is not enough money from the sale to pay what you owe, you may be liable for some or all of the deficiency, as allowed by state law. If you are a resident of Massachusetts, you will not be liable for a deficiency if the amount you owe at the time of default is $2,000 or less. If you are a resident of West Virginia, you will not be liable for a deficiency if the amount you owe at the time of repossession or surrender of the collateral is $1,000 or less. If we repossess the Property, you agree to pay our actual costs of retaking, storing, repairing, preparing for sale and selling the Property, if applicable and to the extent such charges are permitted by law. Waivers. We may delay enforcing any of our rights or elect not to enforce our rights without losing any of them. You and any other person who has obligations under this Note waive your rights to require us to do certain things and the rights of demand, presentment, protest, notice of dishonor and notice of protest to the extent permitted by law. "Presentment" means the right to demand payment of amounts due. "Notice of dishonor" means the right to require us to give notice that amounts due have not been paid. To the extent permitted by applicable law, you agree that we are not required to: (a) Demand payment of amounts due; (b) Give notice that amounts due have not been paid or have not been paid in the correct amount, time or manner; or (c) Give notice that we intend to make, or are making, this Note immediately due. General. This Note constitutes the entire agreement between you and us and may not be altered or amended except by a writing signed by both you and us. To the extent permitted by applicable law, this Note (excluding the "Agreement to Arbitrate" below) shall be governed by and construed in accordance with the substantive laws of the State of Utah (excluding choice of law and conflict of law principles) and Federal law pursuant to 12 USC § 1831d, and, to the extent not preempted by federal law, Kansas law for Kansas residents, Title 12, Subtitle 10 of the Maryland Commercial Law Article for Maryland residents, and South Carolina law for South Carolina residents. Any provision hereof held by a court or arbitrator to be invalid will not affect the enforceability of the remaining terms of this Note. The obligations of all persons signing this Note as borrowers or co-borrowers, are joint and several. You may not assign this Note. This Note shall be binding upon the heirs, personal representatives, successors, and assigns of the parties hereto. We do not have to repossess the Property or exercise any of our other rights before collecting from you. You agree to give us updated financial information any time we request it. As required by Utah law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. Communication Consent. You agree that we and any of our affiliates, agents, service providers or assignees may call you, leave you a voice, prerecorded, or artificial voice message, or send you a text, e-mail, or other electronic message for any purpose related to your accounts with us, our products and services, or surveys or research (each a "Communication"). You agree that we and any of our affiliates, agents, service providers or assignees may call or text you at any telephone number associated with your accounts, including cellular telephone numbers, and may send an e-mail to any email address associated with your accounts. You also agree that we and any of our affiliates, agents, service providers or assignees may include your personal information in a Communication and may conduct a Communication using an automatic telephone dialing system. We will not charge you for a Communication, but your service provider may. In addition, you understand and agree we and any of our affiliates, agents, service providers or assignees may always communicate with you in any manner permissible by law that does not require your prior consent. Additional State Law Notices. Florida Residents Only: Florida documentary stamp tax required by law in the amount shown in the itemization of Amount Financed on page 2 has been paid or will be paid directly to the Department of Revenue. Certificate of Registration # 78-8013248582-8 For Iowa, and Kansas residents: IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. For Missouri residents: Oral agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable. To protect you (borrower(s)) and us (creditor) from misunderstanding or disappointment, any agreements we reach covering such matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it. For Utah residents: This Agreement is the final expression of the agreement between you and us and it may not be contradicted by evidence of an alleged oral agreement. For Texas residents: This written loan agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. For New Jersey residents: Certain provisions in this Note may be void, unenforceable or inapplicable to residents in states other than New Jersey. None of these provisions are void, unenforceable or inapplicable to New Jersey residents. ANY HOLDER OF THIS CONSUMER CREDIT NOTE IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. The following "AGREEMENT TO ARBITRATE" does not apply to Covered Borrowers under the Military Lending Act. AGREEMENT TO ARBITRATE. Upon the demand of either party, any action, dispute, claim or controversy of any kind arising out of, pertaining to or in connection with this Note (including without limitation issues regarding the enforceability of this arbitration provision and issues arising from the application, processing, closing or collection of this Note, and including any disputes related to insurance purchased, requested or obtained in connection with this Note) or any other relationship between the parties shall be resolved by binding arbitration according to the rules of the American Arbitration Association (AAA). In the event the AAA is unable or unwilling to serve as the arbitration administrator and the parties cannot mutually agree upon a substitute, a substitute administrator and/or arbitrator may be appointed in accordance with the Federal Arbitration Act (FAA). We will advance your filing, administration, service or case management fee and your arbitrator or hearing fee all up to a maximum of $500, which may be reimbursed by decision of the arbitrator under applicable law. Each party shall be responsible for its own attorney, expert and other fees, unless awarded by the arbitrator under applicable law. Any arbitration under this provision shall be conducted within the federal judicial district where you executed this Note or at another mutually agreeable location. Judgment upon an arbitration award may be entered in any court having jurisdiction. A demand for arbitration may be made either before or after the institution of any legal proceeding. The initiation of a legal proceeding by a party shall not waive that party's right to demand arbitration with respect to any subsequent complaint, third party complaint, cross claim or counterclaim. This agreement to arbitrate controversies and claims includes disputes between you and our agents, contractors, employees, officers or assignees. This arbitration provision shall not limit the right of any party to this Note to exercise self-help remedies such as setoff or repossession and sale of the Property upon default. Pursuant to this arbitration provision, the parties agree to give up and waive any right they may have to bring a class action lawsuit or class arbitration, or to participate in either as a claimant. This arbitration provision shall be interpreted under the FAA (rather than any state law specifically related to arbitration) and shall survive the termination or completion of this Note.