What is a floor plan loan
DEALER FLOOR PLAN AND SECURITY AGREEMENT
THIS DEALER FLOOR PLAN AND SECURITY AGREEMENT (the Agreement) is made as of September 28, 2007, by and among FOUNTAIN DEALERS FACTORY SUPER STORE, INC. a North Carolina corporation (Borrower), REGIONS BANK, an Alabama state banking corporation (together with its successors and assigns, Lender), FOUNTAIN POWERBOATS, INC. a North Carolina corporation (Fountain Powerboats), and FOUNTAIN POWERBOAT INDUSTRIES, INC. a Nevada corporation (Parent and together with Fountain Powerboats, the Guarantors).
WHEREAS, Borrower and Guarantors have requested Lender to loan money to and otherwise extend credit to Borrower to finance, inter alia, its inventory of new vessels, watercraft, boat
and boat motors (hereinafter, Floor Plan Credit); and
WHEREAS, Lender has required, as a condition to extending Floor Plan Credit that this Agreement be executed by Borrower and Guarantors; and
WHEREAS, Lender has loaned and/or extended credit and/or may in the future loan and/or extend credit to Borrower by reason of the request of Borrower and in reliance upon this Agreement;
NOW, THEREFORE, in consideration of the foregoing, of the promises herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, each intending to be legally bound hereby, agree as follows:Source: www.sec.gov