Document background
The Retail Installment Contract And Security Agreement is a fundamental document in Canadian retail financing transactions, particularly used when consumers purchase significant goods through installment payments. This agreement serves a dual purpose: it documents the terms of sale and creates a security interest in the purchased goods, providing protection for the seller or financing institution. The document must comply with provincial consumer protection laws, the Personal Property Security Act (PPSA), and federal regulations regarding interest rates and consumer credit. It's commonly used in various retail sectors including automotive, electronics, and furniture sales, where purchases are substantial enough to warrant installment payments. The agreement includes essential elements such as payment schedules, interest calculations, default provisions, and remedies, while ensuring all mandatory consumer disclosures under Canadian law are properly documented.
