AGREEMENT OF LOAN: STAFF LOAN

1.a)       BACKGROUND TO STAFF LOAN AGREEMENT:

 

 

I, the undersigned, ………………………… ID: …………………………, residing at

…………………………………………………………………………… employed by …………………………..(PTY)LTD  (“the Creditor”) and in the process of selling my current motor vehicle and purchasing a new motor vehicle for the price of R………………………….

 

My employer, ……………………… (PTY)LTD has kindly offered to lend me the aforementioned sum of R …………………. in order to assist me with purchasing the new motor vehicle, subject to the terms and conditions contained in this loan agreement.

 

1. b)     AFFORDABILITY:

 

 I hereby confirm that I and my employer conducted the necessary calculations with respect to my income and expenditure and verified that I am well able to afford to repay the aforementioned loan as my financial circumstances are as follows:

salary: R …………..pm

paye:

expenses(list):

repayment of loan: R …………pm.

 

 

 

1. c)     ACKNOWLEDGEMENT:

 

I hereby confirm that I received the sum of R …………………from my employer on date of signature hereof and therefore I acknowledge, in my personal capacity that I am truly and lawfully indebted to and in favour of  …………… (PTY) LTD            (“the Creditor”) and their successors and/or assigns in the amount of  R ………………………  (“the capital amount’) arising from money lent and advanced in terms of a loan by the Creditor to me, for the purpose of assisting me to purchase a motor vehicle, subject to the terms and conditions contained in this Loan Agreement.

 

2. INTEREST

 

• I shall not pay interest subject to the terms and conditions set out under clause 6 below.

 

3. REPAYMENT

3.1      At inception of this loan the amounts payable are:

a)        Capital: R ………………..

1. Interest: R nil, subject to clause 6 below

 

(Note that the above figures assume payment within the stipulated time periods. Should I default I shall immediately be liable to pay interest in accordance with clause 6 below.)

3.2    I shall repay the capital amount due in terms of this instrument in monthly   instalments of R ……. each, the first instalment of R …….. to be paid on or before the …………..of 20.. and each respective instalment to be made on or before the 1st day of each month thereafter, until all amounts outstanding in terms of this instrument are paid in full.

3.2      The monthly instalments payable shall be deducted from my salary during my employment with the creditor.

3.3      In the event of my default of this agreement, alternatively my employment  with the Creditor being terminated, all payments due shall be made in cash free of bank charges deduction or set-off to the Creditor by deposit into the Creditor’s bank account with details: …………………… (Pty) Ltd ; Bank: …………..; Branch: ……………..; Account Type: ………………; Account Number: ………………; Branch Code: ………………).

 

3.4      The instalments will be appropriated firstly towards any collection commission and/or legal costs envisaged, then interest and thereafter in reduction of the capital amount.

3.5      I shall be liable to continue paying the debt until all the collection commission and / or legal costs envisaged, interest and capital are paid in full.

 

• SPECIAL CONDITIONS

 

4.1    I shall strictly only be entitled to utilise money lent to me in terms of this agreement for the purpose of purchasing a motor vehicle;

 

• This loan was made to me at zero interest with the specific purpose of assisting me to acquire a motor vehicle that I could utilise while I was employed by the Creditor.

 

• I am in the process of selling my current motor vehicle and I am strictly required to pay all the proceeds of the sale of my current motor vehicle to the creditor immediately on receipt thereof.

 

• This loan was made subject to the condition that I am to work for the creditor for a minimum of 24 more months from the date of signature hereof.

 

• Should I be dismissed or resign within a lesser period than 24 months from the date of signature of this agreement, the full capital outstanding, plus interest in terms of clause 6 below, i.e.at 22% per annum compounded monthly in arrears shall immediately become due and payable

 

5. EARLY REPAYMENT

 

I shall at any time (without the need for any minimum period to have elapsed after the execution of this instrument or after any other date) be entitled to repay the balance of the capital amount outstanding together with the interest payable thereon, in one amount.

 

6. DEFAULT

 

6.1    Should I fail to make any payment on the due date of any amount owing in terms of this instrument, or should I be dismissed or resign within 24 months of signature of this agreement, then I shall immediately be liable to repay the full capital outstanding plus all interest accrued on such amount outstanding at the rate of 22% per annum payable on the capital amount outstanding.

 

6.2    In the event of me:

 

6.2.1     failing to make payment of any amount by due date; or

 

6.2.2     becoming the subject of sequestration, winding up or dissolution proceedings; or

 

6.2.3     effecting or offering a general compromise or deed of arrangement with creditors or with any class of creditors, or making any assignment for the benefit of creditors; or

 

6.2.4     suffering a judgment to be granted or entered against me in or by any Court of Law, and unreasonably failing to cause such judgment to be satisfied within a period of 10 (ten) days from the date of such judgment;

 

then the full amount of the capital amount outstanding, together with the interest payable thereon at 22% per annum compounded monthly in arrears, collection commission and/or legal costs will immediately become due and payable by me without prior notice and/or demand from the Creditor.

 

7. BREACH; JURISDICTION; CONFIRMATION OF BALANCE

 

7.1    Without limiting the generality of the provisions contained in clause 5 above, should I breach any terms of this instrument and should the Creditor become entitled to enforce any of the provisions of this instrument, then without prejudice to any other rights which the Creditor may have and in addition to the Creditor’s common law rights, the full amount of the capital amount outstanding, together with the interest payable thereon, will immediately become due and payable by me without prior notice and/or demand from the Creditor.

 

7.2    A certificate signed by the Creditor or his personal accountant confirming the amount due and payable shall be sufficient prima facie evidence for the purposes of obtaining summary judgment or provisional sentence against me for the amount claimed in the Magistrate’s Court.

 

7.3    In the event that any breach is committed and it is necessary to take legal action in respect of the recovery of this money, then I consent to the jurisdiction of the Magistrate’s Court irrespective of whether the amount claimed is greater than the legislated jurisdiction of the Magistrate’s Court.  I acknowledge that I am liable to pay any legal costs incurred in respect of any legal action taken against me for the recovery of any money outstanding in terms of this agreement on an attorney and client scale.

 

 

 

 

8. WAIVER

 

No extension of time or indulgence by either party to the other will be deemed in any way to affect, prejudice or derogate from the rights of such party in any respect under this instrument, nor shall it in any way be regarded as a waiver of any rights hereunder, nor a novation of this instrument.

 

9. NON-VARIATION

 

No variation of this instrument will affect the terms hereof unless such variation is reduced to writing and signed by or on behalf of the parties.

 

10. COSTS

I agree to pay collection commission and, on an attorney and client scale, all legal fees incurred by the Creditor in respect of any claim or proceeding arising out of or being in connection with this instrument, as well as all collection commission and tracing costs.

 

11. TAXATION:

 

In the event that fringe benefit taxes applicable to me for this zero interest loan, the Creditor reserves the right to deduct monthly in the amount applicable to me in this regard.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THUS DONE AND SIGNED AT _____________________ ON THE _____ DAY OF

 

__________________ 20..

 

 

 

AS WITNESSES:

 

1. ___________________________

 

2          ___________________________

________________________

 

 

 

 

 

THUS DONE AND SIGNED AT _____________________ ON THE _____ DAY OF

 

__________________ 20..

 

 

AS WITNESSES:

 

1. ___________________________

 

2. ___________________________

_____________________________

……………………………………..in his capacity as duly authorised representative of the Creditor.