What is a Note and Security Agreement?
A retail installment contract (or Note and Security Agreement) is an agreement between the customer and a financial lender to finance the purchase or refinance of a vehicle that will be used to secure a loan. The customer agrees to repay the borrowed amount plus interest in periodic payments over a specified time period. The lender (or its assignee) takes a security interest in the vehicle under a retail installment contract. While the customer is the legal owner, the lender (or its assignee) must be the first lienholder on the vehicle.
