PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT made this 6th day of December, 1995, by and between
CHARLIE FALK'S AUTO WHOLESALE, INCORPORATED (hereinafter referred to as "CFAW"),
a Virginia corporation, and AUTOINFO FINANCE OF VIRGINIA, INC., a Virginia
corporation (hereinafter referred to as "AI FINANCE").
WITNESSETH:
WHEREAS, CFAW is in the business of selling automobiles and other vehicles
(collectively, the "Vehicles") to retail customers; and
WHEREAS, AI FINANCE is in the business of purchasing retail installment
contracts secured by Vehicles; and
WHEREAS, CFAW desires to offer to sell to AI FINANCE, upon the terms and
conditions set forth in this Agreement, retail installment sale contracts,
security agreements, chattel mortgages and/or other such title retention and
lien instruments (hereinafter collectively referred to as "Contracts" or,
singularly, as a "Contract") which relate to the sale by CFAW at retail of
Vehicles; and
WHEREAS, AI FINANCE desires to purchase from time to time certain of the
Contracts acceptable to it in its sole discretion as set forth in this
Agreement; and
WHEREAS, CFAW and AI FINANCE wish to set forth the terms and conditions
upon which CFAW will offer and sell certain of the Contracts and AI FINANCE will
purchase certain of the Contracts, all as set forth herein.
NOW, THEREFORE, it is hereby agreed as follows:
1. Term. The term of this Agreement shall be for a period of ten (10)
years commencing on the date first written above (the "Term").
2. Fee. In consideration for CFAW entering into this Agreement AI
Finance shall pay to CFAW on the date hereof the sum of One Million Five Hundred
Thousand ($1,500,000) Dollars.
3. Obligation to Offer Contracts to AI FINANCE. During the Term of
this Agreement, CFAW shall exclusively offer at least ninety (90%) percent of
the
Contracts it enters into or acquires to AI FINANCE for purchase. CFAW shall
provide AI FINANCE with all reasonable documentation necessary for AI FINANCE to
evaluate each such Contract in accordance with the "Credit Criteria" annexed
hereto as Exhibit A (the "Credit Criteria"). In the event that AI FINANCE elects
not to purchase any Contract, CFAW shall have the right to offer such Contract
for purchase by third parties; provided, however, that AI FINANCE shall have a
right of first refusal to purchase any such Contract it previously elected not
to purchase, on the same terms and conditions that a third party has proposed to
purchase such Contract, upon two (2) business days notice to it in writing of
CFAW's intent to sell such Contract. CFAW shall provide AI FINANCE with a copy
of its monthly sales log, in arrears, on or before the fifteenth day of each
month during the Term.
4. Obligation of AI FINANCE. AI FINANCE shall consider and evaluate
each Contract presented to it by CFAW in a commercially reasonable manner
consistent with past practice, and AI FINANCE shall advise CFAW within two (2)
business days from its receipt of all reasonable documentation necessary to
evaluate a Contract whether it elects to purchase such Contract. AI FINANCE
shall purchase at least eighty-five (85%) percent of the Contracts presented by
CFAW which are in strict compliance with the Credit Criteria (a "Conforming
Contract"). AI FINANCE shall provide CFAW with an aging report of Down-Payment
Notes (as herein defined) on the first and fifteenth day of each month during
the Term.
5. Terms of Purchase.
(a) Upon the acceptance by AI FINANCE of a Contract, CFAW shall sell,
transfer and assign to AI FINANCE all of its rights, title and interest in and
to such Contract together with any notes, guarantees, security agreements,
chattel mortgages and other instruments associated with the Contract, all moneys
due under the Contract and all of CFAW's rights and remedies under or in
connection with the Contract. The assignment and transfer hereunder shall not
constitute an assignment of CFAW's obligations as a seller of the automobiles.
(b) The Purchase Price for each Contract purchasable by AI FINANCE
hereunder shall be the lesser of (i) the sum of (a) eighty (80%) percent of the
face value of such Contract after deducting any fees charged for taxes, title
and transfer (the
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"TTT Charges") and (b) 100% of the TTT Charges; or (ii) the sum of (a) five
hundred fifty-two ($552.00) dollars above the clean wholesale Black Book value
of the Vehicle underlying the Contract and (b) 100% of the amount paid for a
CFAW warranty product on the Vehicle, if any. The face value of the Contract may
include warranty products included in the Contract based upon a schedule of
retail prices for such products to be agreed upon by the parties hereto on a
periodic basis (the present retail price for the CFAW warranty is $690.00);
provided, however that the value of the CFAW warranty shall be excluded from the
Purchase Price under (i) and (ii) above if, in AI FINANCE's reasonable opinion,
CFAW is not providing adequate warranty service. All conveyances of the
Contracts and Documents (as herein defined), as contemplated herein, shall be
effective upon payment of the Purchase Price.
(c) In the event that AI FINANCE purchases a Contract for which a
down-payment was tendered in the form of a promissory note (a "Down-Payment
Note"), then AI FINANCE shall, in addition to purchasing the Contract, purchase
the Down-Payment Note for eighty (80%) percent of its face value. CFAW may never
hold any commercial paper or other debt instruments of any nature whatsoever
(including but not limited to warranty and TTT notes) on a Vehicle with respect
to which AI FINANCE purchased the Contract. No Down-Payment Note which CFAW
enters into shall (a) be for a term greater than ninety (90) days; (b) be in a
principal amount greater than $1,000.00; or (c) bear interest. All late fees and
other charges due pursuant to a Down-Payment Note transaction shall be due to
and for the benefit of AI FINANCE.
6. Purchase Documentation. The Contracts purchased by AI FINANCE shall be
evidenced by the documents (the "Documents") set forth in Exhibit B attached
hereto. The Documents shall be executed and delivered and otherwise be in form
and content satisfactory to AI FINANCE and CFAW. The assignment and conveyance
of the Contracts shall be in the form of Exhibit C attached hereto.
7. Repurchase Obligations of CFAW. All Conforming Contracts purchased by AI
FINANCE hereunder, or purchased by Falk Finance Company, Inc. ("FFC") prior to
the date hereof, shall be subject to a full repurchase obligation by CFAW (the
"Repurchase Obligation") at all times prior the payment by the borrower of ten
(10%) percent of the cash price of the Vehicle (as set forth on line 1 of the
Buyer Sheet) (i.e., if a ten (10%) percent cash down-payment is made, there
shall be no Repurchase Obligations pursuant to thisParagraph, but if less than
ten (10%) percent is tendered as a down-payment in either (i) cash, (ii) actual
cash value of a trade-in, or (iii) as a result of payments made pursuant to
Down-Payment Notes, then the Contract shall be subject to the Repurchase
Obligation until the full ten (10%) percent has been actually paid). Pursuant to
its Repurchase Obligation, CFAW shall repurchase each and every Contract subject
thereto for a price equal to one hundred (100%) percent of the outstanding
principal balance due pursuant to (a) the Contract, and (b) the Down-Payment
Note, if applicable; plus eighty (80%) percent of the prorated portion of any
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warranty product included in such Contract (collectively, the "Repurchase
Price"); provided, however, that the Repurchase Price shall never exceed the
amount originally paid to CFAW by AI FINANCE (or FFC) in connection with such
Contract. All Contracts subject to the Repurchase Obligation shall be
repurchased for cash by CFAW immediately upon presentation of the transfer
documentation set forth on Exhibit D hereto by AI FINANCE and physical receipt
of the Vehicle underlying the Contract, following a default under such Contract.
For the purposes of this Agreement "actual cash value" shall mean the amount
actually realizable upon the disposition of a Vehicle. From and after the date
hereof, the Repurchase Obligation with respect to any Contract shall be
evidenced by CFAW's acknowledgment thereof on the Contract.
8. Recourse Obligations of CFAW. All Contracts purchased by AI FINANCE
which do not strictly conform to the Credit Criteria (a "Non-Conforming
Contract") shall be full recourse to CFAW during any period in which an
outstanding balance remains due and owing under such Contract (a "Recourse
Obligation"). Additionally, CFAW acknowledges that certain Contracts purchased
by FFC prior to the date hereof are recourse to CFAW as evidenced by CFAW's
acknowledgment thereof on such Contracts. Pursuant to its Recourse Obligation,
CFAW shall, upon a default under each such Contract subject thereto, pay to AI
FINANCE an amount equal to one hundred (100%) percent of the outstanding
principal balance due pursuant to (a) the Contract, and (b) the Down-Payment
Note, if applicable, plus eighty (80%) percent of the prorated portion of any
warranty product included in such Contract (collectively, the "Recourse
Amount"); provided, however, that the Recourse Amount shall never exceed the
amount originally paid to CFAW by AI FINANCE (or FFC) in connection with such
Contract. The payment of a Recourse Amount shall be made in cash by CFAW
immediately upon presentation of the transfer documentation set forth on Exhibit
D hereto by AI FINANCE, following a default under such Contract. If AI FINANCE
is willing to purchase a Non-Conforming Contract pursuant to the provisions of
this Paragraph it shall advise CFAW thereof. In such event CFAW may either (a)
accept the recourse nature of the transaction, or (b) withdraw the Contract for
purchase consideration by AI FINANCE and offer it to unaffiliated third parties
for purchase; provided, however, that AI FINANCE shall have a right of first
refusal to purchase any such Contract on the same terms and conditions that a
third party has proposed to purchase such Contract, upon two (2) business days
notice to it in writing of CFAW's intent to sell such Contract. From and after
the date hereof, CFAW's recourse obligation with respect to a Contract purchased
shall be evidenced by CFAW's acknowledgment thereof on the face of the Contract.
9. Remarketing Services. AI FINANCE may offer to CFAW the option to
purchase any Vehicle repossessed by AI FINANCE which relates to a Contract
purchased by FFC or AI FINANCE. Upon repossession, AI FINANCE shall make the
repossessed Vehicle available to CFAW for inspection. CFAW shall have seven (7)
business days in which to advise AI FINANCE whether it elects to purchase such
Vehicle. If CFAW elects not to purchase the Vehicle, and such Vehicle is stored
on a CFAW lot, then AI FINANCE shall have seven (7) business days to remove the
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Vehicle from CFAW's lot, during which time it shall be stored without charge. In
the event CFAW elects to purchase the Vehicle, it shall pay to AI FINANCE for
each Vehicle purchased by it one hundred (100%) percent of the average wholesale
Black Book value, mileage adjusted, as of the date of repossession. Such payment
shall be made on the earlier of (i) the date the Vehicle is actually sold, or
(ii) the seventy-fifth (75th) day following CFAW's acceptance of the Vehicle for
purchase. Each of AI FINANCE and CFAW acknowledge that as the date hereof there
is an inventory of automobiles of AI FINANCE (or FFC) which are located on CFAW
lots. CFAW shall have ten (10) business days from the date of this Agreement in
which to advise AI FINANCE whether it elects to purchase each such Vehicle. If
CFAW elects not to purchase any such Vehicle, and such Vehicle is stored on a
CFAW lot, then AI FINANCE shall have ten (10) business days to remove the
Vehicle from CFAW's lot, during which time it shall be stored without charge.
With respect to each Vehicle CFAW elects to purchase, it shall pay to AI FINANCE
with respect to such Vehicle one hundred (100%) percent of the average wholesale
November 1995 Black Book value, mileage adjusted. Such payment shall be made on
the earlier of (i) the date the Vehicle is actually sold, or (ii) the
one-hundred twentieth (120th) day following CFAW's acceptance of the Vehicle for
purchase. CFAW shall provide AI Finance on a weekly basis during the Term hereof
with a list reflecting all Vehicles held by CFAW for resale.
In the event that AI FINANCE elects to have CFAW sell for AI FINANCE a
vehicle at the CFAW auction, then AI FINANCE shall pay to CFAW $120.00 in
connection with the storage of such vehicle. In the event that AI FINANCE elects
to have CFAW sell a Vehicle for AI FINANACE at an auction other then the CFAW
auction then AI FINANCE shall pay to CFAW ten (10%) percent of the strike price
at such auction as a handling and commission fee, plus $25.00 for local
transportation of the Vehicle. No other fees or amounts shall be due from AI
FINANCE to CFAW (or any affiliated party) in connection with the remarketing of
Vehicles.
10. Collection Agent. CFAW shall during the Term hereof, upon the
reasonable request of AI FINANCE, without charge, accept payments on AI
FINANCE's behalf on account of Contracts purchased hereunder or purchased by
FFC. AI FINANCE shall provide CFAW with all forms, logs and other documentation
necessary to perform this service. CFAW's sole obligation shall be to accept
such payments and use reasonable commercial efforts to safeguard the payments
until they are collected daily by AI FINANCE. Except upon written instruction
for AI FINANCE, CFAW shall not deposit any such payments.
11. Modification of Credit Criteria. AI FINANCE shall have the right, from
time to time during the Term, upon written notice to CFAW, to reasonably amend
the Credit Criteria if AI FINANCE's first lien loss ratio exceeds 22.39%.
12. Representations of CFAW. CFAW represents and warrants to AI FINANCE as
follows:
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(a) CFAW is a corporation duly organized, validly existing and in good
standing under the laws of the Commonwealth of Virginia and has the corporate
power and is duly qualified to carry on its business as it is now conducted.
(b) The execution, delivery and performance of this Agreement and all
documents related thereto by CFAW and the consummation of the transactions
contemplated herein have been duly and validly authorized by CFAW.
(c) This Agreement is a valid, binding and enforceable obligation of
CFAW enforceable against CFAW in accordance with its terms except to the extent
such enforceability may be limited by applicable bankruptcy or insolvency laws,
or creditor rights generally. The consummation of the transaction contemplated
by this Agreement will not result in a breach of any term or provision of the
Articles of Incorporation or Bylaws of CFAW or result in the breach of any term
or provision of, or conflict with or constitute an event of default under, any
agreement, document or instrument to which CFAW or its property is subject. The
execution and delivery of this Agreement and the performance of the transaction
contemplated by this Agreement will not result in the violation of any law,
rule, regulation, order, judgment or decree to which CFAW or its property is
subject.
(d) There is no action, suit, proceeding or investigation pending or,
to the knowledge of CFAW, threatened against or affecting CFAW before any court,
arbitrator or administrator of a government body which would or may result in
any material adverse change in the business, properties or condition of CFAW, or
which might otherwise affect the collectibility of any of the Contracts or the
Documents.
(e) With regard to each Contract sold hereunder, the Contract,
including the related Documents, is, and will be, legal, valid, binding and
enforceable in accordance with its terms (except as such enforceability may be
limited by bankruptcy, insolvency or similar laws affecting the enforceability
of creditors' rights generally and by equitable principles of general
applicability) and is and will remain free of all claims, counterclaims,
disputes and offsets; the Contract and related Documents delivered to AI FINANCE
will contain the entire agreement of the parties thereto; to the best of CFAW's
knowledge, the Contract and the property and/or services therein described will
comply with all applicable laws and regulations; AI FINANCE's security interest
in the property specified in the Contract will be a duly perfected, valid and
enforceable first priority security interest in such property; and the insurance
covering the property specified in the Contract is, and will be, in full force
and effect.
(f) CFAW has full title and right to sell and assign the Contracts and
Documents and such Contracts and Documents are, and will be, conveyed free and
clear of all liens and encumbrances whatsoever.
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13. Indemnification. CFAW will indemnify, defend and hold harmless AI
FINANCE from any and all losses (including, without limitation, inability to
collect the amount outstanding under any contract), damages, costs, fines and
expenses, including reasonably attorneys' fees arising out of whether incurred
in connection with third party claims and defenses or in connection with
enforcing this Agreement),arising out of (i) any claim, defense, counterclaim,
dispute, action or proceeding brought or alleged on account of any warranty,
express or implied, agreement or undertaking either made or alleged to have been
made by CFAW or any other person or firm in connection with the sale, servicing
or repair of the subject matter of any Contract, or (ii) any failure (whether or
not known to CFAW) of any Contract or the property or services therein described
to comply with all applicable laws ad regulations; and (iii) any breach of any
agreement, representation or warranty made by CFAW herein or in the form of
Assignment attached hereto in Exhibit C. The indemnification provided for herein
shall not be limited to the outstanding balance under the Contracts, but shall
include all losses, damages, costs, fines and expenses incurred by AI FINANCE
and shall be entitled to assume the defense of any claim for which
indemnification is provided under this Agreement, using counsel selected by CFAW
and approved by AI FINANCE, which approval shall not be unreasonably withheld.
These indemnification rights shall be in addition to all other rights and
remedies under this Agreement including without limitation any right of AI
FINANCE to require that CFAW repurchase a Contract.
14. Covenant Relaxation Provisions. In the event AI FINANCE fails to
purchase eighty-five (85%) percent of the Conforming Contracts offered to it in
any calendar month during the Term hereof, and fails to purchase eighty-five
(85%) of the Conforming Contracts in each of the following two (2) calendar
months (a "AI FINANCE Non-Performance Event"), then the covenant not to compete
(the "Covenant") contained in the Asset Purchase Agreement of even date herewith
between, inter alia, AI FINANCE and FFC (the "Asset Purchase Agreement") shall
be modified and reformed as follows. If the AI FINANCE Non-Performance Event
occurs during a period when Charles E. Falk, Sr. is a guarantor of the "Finova
Debt" (as defined in the Asset Purchase Agreement) (the "Guarantee Obligation")
then the Covenant shall terminate with respect to Charles E. Falk, Sr., Charles
E. Falk, Jr., and any entity controlled by either of them (collectively, a
"Related Party"). If the AI FINANCE Non-Performance Event occurs during the
first five (5) years of the Term hereof and the Guarantee Obligation has ceased,
then the Covenant shall be modified to permit CFAW to offer Conforming Contracts
to a Related Party without first offering such Contracts to AI FINANCE as
required pursuant to the terms of this Agreement (provided, however, that all
other provisions of the Covenant shall continue in full force and effect except
to the extent necessary to permit the foregoing). If the AI FINANCE
Non-Performing Event occurs after the fifth year of the Term hereof, then the
Covenant shall terminate with respect to any Related Party.
15. Set-Off. AI FINANCE shall have the right to set-off against the
purchase price of any Contract any amounts then due and owing from CFAW to AI
FINANCE
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hereunder. Notwithstanding the foregoing, prior to setting off any amount due to
it, AI Finance shall request in writing from CFAW any amount then due and owing
to AI Finance, which shall be paid by CFAW within five (5) days of such notice.
AI Finance shall have the absolute right to withhold payment to CFAW on account
of any Contract as long as CFAW owes AI FINANCE any amounts hereunder.
16. Miscellaneous. (a) This Agreement and the Exhibits referred to herein
constitute the entire Agreement between the parties with respect to the subject
matter hereof, and all prior understandings, whether written or oral, with
respect to such subject matter are superseded by this Agreement. No modification
or variation of this Agreement shall be deemed valid unless made in writing and
signed by both CFAW and AI FINANCE. The terms of this Agreement shall control in
the event of any inconsistency between the term of this Agreement and any
preprinted terms of assignment that may appear on a Contract form.
(b) This Agreement shall be governed by and construed
in accordance with the laws of the Commonwealth of Virginia.
(c) This Agreement shall be binding upon any successor
or assignee of CFAW or any successor or assignee of any significant portion of
CFAW's business whether by stock purchase, asset transfer, joint venture, or
otherwise.
(d) Each obligation of CFAW hereunder which exists as
of the date that the Term expires shall survive such termination until each such
obligation is performed or terminates as a matter of fact.
(e) For the purposes of this Agreement, any obligation
of CFAW shall be deemed to be an obligation of CFAW and any company controlled
by, controlling or under common control with CFAW. WITNESS the following
signatures:
CHARLIE FALK'S AUTO WHOLESALE
INCORPORATED
By:
-----------------------------------
AUTOINFO FINANCE OF VIRGINIA,INC.
By:
-----------------------------------
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EXHIBIT A
Newco
Credit Criteria
October 1995
SECTION I - GENERAL TERMS
Contracts financed by Newco must meet the following conditions:
1. Rate: All contracts must be written with a target interest rate of
twenty-four (24%) percent. Newco will earn interest using the Rule of 78's as it
relates to customer accounts.
2. Eligible: Newco will finance cars, vans, and trucks that are no older than
eight model years and Warranty Contracts. Currently this includes 1988 and newer
models.
3. Terms: The maximum term for the current model year and four prior years
will be 48 months. Currently 1994 is one year old, 1993 is two years old, 1992
is three years old and 1991 is four years old. The maximum term for model years
five years old or greater shall be 42 months.
4. Minimum Down Payment: The minimum down payment is 10% of the Cash Price of
the vehicle, but not less than $500 (as reflected on line one of the Buyers
Order Sheet). However, Newco may require an additional down payment depending
upon the strength of the individual transaction.
The Downpayment may consist of:
- Cash.
- Trade - Ins: Newco will use Black Book Used Car Market Guide
or appraisal report (ACV), whichever is less, to determine the
acceptable value for a trade-in. The appraisal report (ACV)
must be realizable by CFAW.
- Downpayment Notes: With a term no longer than 90 days from
sale of car and not to exceed $1,000.00.
5. Payment Due Date: A maximum of 45 days from Date of Contract is acceptable.
6. Casualty Insurance: Casualty insurance cannot be financed in the contract.
The borrower must provide evidence of insurance coverage to Newco, Newco will
accept a maximum of $250.00 comprehensive and collision deductible.
The borrower must provide:
1. A signed agreement to provide insurance and evidence of a pre-
existing policy on which the new vehicle is to be added; or
2. A signed agreement to provide insurance which lists: insurance
company name, company agent, address, and phone number; and
3. All casualty insurance will be verified prior to delivery of the
vehicle.
Vehicle must be covered by Physical Damage Insurance at the time of
contract funding.
7. Warranty Contracts: Warranty Contracts are an approved product that can be
financed in the contract. The maximum amount financed will be $690.00. If an
approved Warranty Contract is written in the contract, the cost of that Warranty
Contract will be deducted from the contract proceeds and forwarded to the
Carrier unless the premium is verified by the Carrier as paid.
8. LA&H Insurance: LA&H Insurance is an approved product that can be financed in
the contract. If LA&H is written in the contract, Newco will either deduct the
Premium from the proceeds and forward the premium to the Carrier or directly
verify with the Carrier that the premium has been paid.
9. Certificates of Ownership: Newco will hold the original titles to vehicles
and immediately return them upon the account being paid off.
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SECTION II
BORROWERS' PROFILE
Newco will consider potential borrowers including:
1. First Time Borrowers.
2. Military (Must be on allotment) (Officers no allotment).
3. Borrowers with some derogatory credit.
4. Borrowers with a prior bankruptcy.
5. Borrowers with a prior repossession and foreclosures.
Borrowers must meet the following minimum requirements:
1. Residence: Minimum one (1) year at residence or three (3) years in the area.
2. Employment: Minimum one (1) with employer or three (3) years employment
history. Will consider the following exceptions:
1. Recent college graduates.
2. Transferees.
3. Military.
3. Expense Ratio: Expense ratio must be 70% or less of verified take-home pay.
There must be at least $300 in disposable income after the payment of the auto
payment and family expenses.
Include as expenses:
1. Anticipated auto payment.
2. Auto insurance.
3. Rent and utilities.
4. $150 for each adult dependent and $75 for each child.
5. Bills on credit bureaus and other disclosed debts which have
scheduled monthly payments. Payment on credit card balances
are estimated at 5% of the account balance.
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4. Minimum Take Home Pay:
Non-Military Military Unmarried Living
------------ -------- ----------------
with Parent
-----------
Single Person $900.00 $1,000 $800.00
Married Couple $1,200.00 $1,300
The borrowers car payment cannot exceed 25% of their combined take home pay
with discretion used for first time borrowers and unmarried living at home.
5. Co-borrowers/Co-signers: For those who apply for joint credit or individual
credit, with a co-signer, both borrowers and/or co-signer must sign the credit
application and the sales contract.
Co-signers are acceptable to offset weak credit characteristics,
however, primary borrower must have sufficient income to service the
loan being requested. Co-signers must have an established credit
history in order to qualify as a co-signer.
Co-signers must sign Federal co-signer letter if not spouse.
6. Credit History: (a) A borrower with prior negative credit may be considered
if:
(i) Current delinquencies are justified.
(ii) Outstanding liens, judgments and charge-offs are older
than five (5) years and less than $500.
(iii)Medical and other collections under $500 or older than
5 years which are currently in dispute will be excluded
provided there is a reasonable explanation written and
signed by the Buyer.
* Justifiable exceptions will be considered and are defined as: an account
where there has been a legitimate dispute or where there is evidence to
indicate that the creditor is in error or it has been verified that
customer has made and kept arrangements with creditor. When a borrower's
profile does not strictly adhere to the Credit Criteria, Newco will require
recourse to the dealer.
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(b) Prior Bankruptcies.
(i) Must be discharged.
(ii) No borrowers currently in bankruptcy, without trustee
approval.
(iii)No derogatory credit since date of discharge of
bankruptcy.
(c) Tax Liens.
Consideration will be given to applicant with State and/or
Federal Tax Liens over $500; will require review and
management sign off.
7. Military: Allotment is Mandatory (Officers excepted).
A copy of the executed Allotment Authorization form and the first payment
must accompany the contract package submitted for contract funding. (Borrower's
check post-dated to the contractual payment date is acceptable).
8. Self-Employed: One of the major considerations in analyzing the credit
profile of our borrowers is the stability of employment and the stability of the
borrowers income.
For self-employed the following information should be submitted with the
credit application:
A. Copy of last years business tax returns (full and completed returns
including Schedule "C" or K-l's).
B. Copy of the Business License.
C. Income must be verifiable.
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