The Deal
After you have sold your alpaca with financing you will want
to be able to sell that note as soon as possible to get your money out and
working for you again. At this point you could contact me and explain your
situation. I would ask a number of questions designed to get a sense for what
your needs are and what I could offer for your note. Some of these questions
would be:
·
What is the face value of the note? If new, that
would be the sales price minus the down payment. If the note has been paid down
for a while, then it would be the amortized value of the note after whatever
number of payments have been made.
·
What is the term of the note? It’s important to
know how many months are left to be paid.
·
What interest rate was the note created with?
This is important as well, and has a direct bearing on what can be offered for
the note.
·
What are the details of the animal sold? Was it
a male, female, maiden, pregnant female, Huacaya, Suri, how old, etc.?
Essentially, I would want to know the same information that the buyer
requested.
·
What are the details of the sales agreement? Is
the animal clearly listed as the collateral for the financing, with details
included, such as registration number and pictures? Has an assignment clause
been written into the sales agreement so that the contract(note) may be
assigned to me after payment? Does the contract contain a “substitution of
collateral” clause? This could be important if the seller has a contractual
agreement with the buyer to replace the animal for any one of a number of
health/reproductive problems.
After reviewing these questions with you I would work up a
price based on the duration, interest rate, and monthly payment. If you and I
agreed on this price then at your convenience we would get together and exchange
paperwork. Essentially this means that you would provide me with the following:
·
Your copy of the sales agreement, with the
assignment section filled in with my name and signed by you, as well as any
other relevant documentation on the animal, including pictures, copies of the
health records, etc.
·
Proof of mortality insurance for the animal.
This would have been provided to you by the buyer, with you as co-beneficiary.
You would need to have that changed so that I become co-beneficiary for the
length of the note.
·
The registration for the animal, transferred to
my name. This would have been retained by you at time of sale.
I would provide you with a check in the amount agreed upon. At
this point we are done. Some other factors may come into play but the above
notes detail a normal “deal”. The whole deal can be wrapped up in a matter of
days. The limiting factors would be the ability to get the registration and
insurance switched over to my name. At all times the buyer would be in the
loop, and aware of what was happening.