If the lender is a retirement plan, the transaction may be subject to various exemptions, in accordance with the Job Security Act 1974 (ERISA).  With the transfer of a guarantee from the loan agreement, all rights are transferred to the borrower. Institutional credit agreements must be concluded and signed by all parties concerned. In many cases, these credit agreements must also be submitted and approved by the Securities and Exchange Commission (SEC). Sarah borrows a car for $45,000 from her local bank. It accepts a loan term of 60 months at a rate of 5.27%. The credit agreement stipulates that she must pay 855 $US on the 15th of each month for the next five years. .