Notice of Default and Right to Cure

In short. The written notice a seller must send before taking any recovery action, giving the buyer a defined period to catch up, plus the accounting notice required after any repossession. Used only if something goes wrong.

The Seller may not repossess, disable, or take any recovery step before serving this notice and allowing the cure period to expire. Acting without it exposes the Seller to liability and may void the right to any deficiency.

Part A — Notice of default and right to cure

To (Buyer)
Address
From (Seller)
Date of notice
Agreement dated
Vehicle / VIN

1. You are in default

This notice is given under the Murabaha Vehicle Sale and Installment Payment Agreement identified above. You are in default for the following reason:

□ One or more payments has not been received more than thirty (30) days after its due date.
□ Required insurance on the vehicle has lapsed or been cancelled.
□ The vehicle has been sold, transferred, pledged, or removed from California without consent.
□ Other:

2. Amount required to cure

Item	Amount
Overdue installments (list dates)	$
Late charges owed to charity	$
Documented out-of-pocket costs (receipts attached)	$
TOTAL REQUIRED TO CURE	$
Remaining balance if not cured	$

3. How to cure

You may cure this default by paying the total shown above, or by remedying the non-monetary breach, on or before:

CURE DEADLINE: , 20 (not less than fifteen days from the date of this notice)

Payment should be made to:

If you cure by the deadline, the Agreement continues in full force as if no default had occurred. You may cure more than once.

4. Request to reschedule

If you are experiencing genuine hardship — job loss, illness, injury, or a substantial fall in income — you may request rescheduling instead of curing. Contact the Seller in writing before the deadline.

Rescheduling cannot increase your total price and no fee may be charged for it. The Seller is encouraged to consider a reasonable request.

5. What happens if you do not cure

The Seller may take possession of the vehicle, without breach of the peace, without force or threat, and without entering a locked or enclosed space without your consent or a court order.
Your personal belongings in the vehicle will be inventoried and returned to you at no charge.
The vehicle will be sold in a commercially reasonable manner. You will be given written notice of the sale.
Proceeds will be applied to documented recovery and sale costs, then to your outstanding balance.
Any surplus will be paid to you within thirty (30) days, with a written accounting.
If the proceeds do not cover the balance, the Seller will first waive the unearned portion of the markup, and will provide a written accounting of the shortfall.

6. Your rights

You have the right to cure as set out above.
You have the right to a written accounting after any sale of the vehicle.
You have the right to seek independent legal advice, and to dispute this notice if you believe it is incorrect.
You have the right to be treated without harassment, threat, or intimidation.

7. Delivery

Method of delivery	Personal / Mail / Email with confirmation
Date delivered
Proof retained

Seller signature: Date:

Print name:

Part B — Notice after repossession

Serve this notice promptly after taking possession of the vehicle, and before selling it. Do not sell the vehicle until the deadline in section B3 has passed.

To (Buyer)
Date of repossession
Vehicle / VIN
Where the vehicle is being held
Contact for redemption or questions

B1. Your personal property

Any personal belongings found in the vehicle have been inventoried and are available for collection at no charge. An inventory is attached. Return of your property is not conditional on any payment.

B2. What you owe

Item	Amount
Outstanding deferred balance	$
Documented recovery and storage costs (receipts attached)	$
AMOUNT TO REDEEM — pay this to get the vehicle back and end the agreement	$
AMOUNT TO REINSTATE — pay only the overdue installments and costs and the agreement continues	$

B3. Your right to get the vehicle back

You may redeem or reinstate by paying the applicable amount above on or before:

DEADLINE: , 20 (not less than fifteen days from the date of this notice)

Reinstating means paying what is overdue plus documented costs. The agreement then continues on its original terms.
Redeeming means paying the full outstanding balance plus documented costs. You then own the vehicle free of the lien.
If you do not do either by the deadline, the vehicle will be sold.

B4. How the vehicle will be sold

Manner of sale	Private sale / Public auction
Earliest date of sale
Location or auction house

B5. What happens to the money

Sale proceeds are applied first to documented recovery, storage, reconditioning and sale costs, then to your outstanding balance.
If money is left over, it will be paid to you within thirty (30) days with a written accounting.
If the sale does not cover the balance, the unearned portion of the markup will first be waived, and you will be given a written accounting of any remaining shortfall before it is claimed.
You will receive a written accounting after the sale whether or not there is a surplus.

B6. Your rights

To redeem or reinstate before the deadline.
To collect your personal property at no charge.
To a commercially reasonable sale and a written accounting afterwards.
To dispute this notice, and to seek independent legal advice.

Seller signature: Date:

Print name:

This is a self-help form, not legal advice. Bysmillah is not a law firm and is not a party to this document. Obtain independent legal advice before signing.