Authorization for Payoff
Boat loan authorization for payoff form with instructions and examples.
The authorization for payoff is designed for boat transactions in which a buyer or a third party closing agent is allowed to pay off a secured loan on the seller's behalf. This offers assurances for the buyer when it comes to receiving an unencumbered title. The following instructions will guide you through the process of drafting your own authorization for payoff.
Usage Context
The authorization for payoff form should be acceptable by most marine lenders, although some may insist on utilizing their own version. Its usage should also be prefaced by a written payoff demand from the lender showing the payoff amount at a certain date, a daily per-diem accrual of interest thereafter, and transmittal instructions.
Required Citations
The form should provide sufficient information about all of
the parties involved along with clear instructions regarding the disposition
of funds. The directions as shown in the examples may accordingly be changed
to conform with the circumstances at hand.
Payer - The legal name, physical address and contact information
for the party designated to make the payoff should be clearly shown.
Borrower - The name and address of the borrower as shown on the underlying loan agreement should be listed along with any contact
information .
Lienholder of Record
- The name and address of the lienholder or secured party as shown on any
lien or encumbrance recordings should be listed.
Loan Number - All commercial boat loans are identified with a
unique loan number. This should be listed accurately.
Vessel Identification -
The subject vessel should be identifies by year, make and length along with
any hull identification, registration or vessel documentation numbers which may apply.
Release Documents - The lienholder should be reminded of any
release documents that are expected such as executed titles or
mortgage releases.
Signature Requirements
The authorization, direction and demand statements shown in the example are typical of what an authorization for payoff may include. This includes a reminder that failure to comply with UCC regulations may result in damages. These may be edited to reflect the circumstances at hand. The authorization must be dated and signed by the actual borrower.
Form Example
Examples of the Authorization for Payoff form are available in Adobe PDF format. These can be easily converted into your favorite word processing application for modification and editing purposes. If your system does not already have this capability, there are a number of free or subscription online internet services available that can provide such an accommodation.
Conclusion
Although this Authorization for Payoff form is generally suitable for most lending institutions, you should check with the respective lender about any such concerns. You may also wish to consult with an attorney about the legal ramifications of utilizing this form.
References and Referrals
Comments - Suggestions - Corrections