Loan agreement


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South African secondary school curriculum tools for Accountancy

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Loan agreement

  1. 1. Loan Agreement ACKNOWLEDGEMENT OF DEBTentered into between:___________________________________ (“the Lender”)and ___________________________________ (“the Borrower”) 1          Amount of loanThe Lender hereby agrees to lend the sum of ________________to the Borrower on the terms set out2          Payment of loan to BorrowerIt is agreed between the parties that payment of the loan amount will not be made to the Borrower befor 1/5
  2. 2. Loan Agreement3          Period of loanThis loan shall endure for a period of ______ months calculated from (date).            (In order to claim exemption from the Usury Act 73 of 1968 this number may not exceed 36 .4          InterestThe Borrower shall be obliged to pay interest at the rate of __________ (percentage) per annum, such i Or The Borrower shall be obliged to pay interest at the rate of _________ (percentage) per annum, the int            5         Exceptio non numeratae pecuniaeThe Borrowerexceptio non numeratae pecuniae of the expressly renounces the benefits understands the meaning of this exception and the effe and confirms that he 6          Place and time of repaymentIf repayment is made by way of monthly instalments all payments must be made by the Borrower on or7          Acceleration clauseIf the Borrower fails to pay any instalment on due date the Lender shall be entitled but not obliged to cla8          Waiver 2/5
  3. 3. Loan AgreementNo relaxation by the Lender of enforcing the acceleration clause at any stage shall amount to waiver of9          Prepayment by BorrowerThe Borrower shall be entitled to pay larger instalments than prescribed or the full balance of capital and10        Breach of termsIf the Borrower fails to make payment of any instalment on due date and the Lender decides to enforce11        InsolvencyThe full balance of the capital and interest shall become payable immediately upon sequestration of the12        SecurityThis agreement is subject to the suspensive condition that the Borrower’s obligations are secured by a s13        The whole contractThe parties confirm that this contract contains the full terms of their agreement and that no addition to o  3/5
  4. 4. Loan Agreement14        Domicilium citandi et executandiThe parties choose as theirthe following addresses: domicilium citandi et executandiThe Lender _________________________________________________________     The Borrower________________________________________________________     15        CostsThe Borrower shall be liable for the costs, if any, in respect of the drafting and execution of this contact. Thus done and signed at ______________________________ (place) on this _______________ (day,Witnesses:                           1                                             2                                                         (Signatures of witnesses)                                                  (Signature of lender)           4/5
  5. 5. Loan AgreementThus done and signed at ______________________________ (place) on this_______________ (day, month, year)Witnesses:                           1                                             2                                                         (Signatures of witnesses)                                                  (Signature of borrower)      5/5