Loan Agreement
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isakakabuje00Loan Agreement
Uploaded by
isakakabuje00LOAN AGREEMENT
THIS AGREEMENT IS MADE this ______________ day of ________________ 2020
BETWEEN:
(1) ____________________________________________ (the “BORROWER”); and
(2) ____________________________________________ (the “LENDER”).
NOW IT IS HEREBY AGREED as follows:
1. Loan:
Subject to and in accordance with this agreement, its terms, conditions and covenants the
Lender agrees to lend to the Borrower the principal sum of thirty million Tanzanian (Tshs.
30,000,000/=) ( the “Loan”).
2. Note:
The Loan shall be evidenced and executed by the Borrower and delivered to the Lender on
the Loan Date.
3. Interest:
The Loan shall have no interest, bear interest on the unpaid principal at an annual rate
of________________ percent (___________ %). In the event of a default in payment the aforesaid
interest rate shall apply to the total of principal and interest due at the time of default.
4. Payment:
Payment shall be in accordance with the terms contained in the Note. The Note may, at any
time and from time to time, be paid or prepaid in whole or in part without premium or
penalty, except that any partial prepayment shall be (a) in multiples of TShs.____________, (b)
a minimum of Sh. ___________, applied to any instalments due under the Note in the reverse
order of their maturity. Upon payment of the outstanding principal in full or all of the
installments, if any, the interest on the Loan shall be computed and a final adjustment and
payment of interest shall be made within five (5) days of the receipt of notice. Interest shall
be calculated on the basis of a year of ________ days and the actual number of days elapsed.
5. Security:
The Borrower agrees to secure the repayment of the Loan by executing those security
documents attached hereto as Exhibit B (the “Security Document”) and shall deliver the
Security Document on the Loan Date. From time to time the Lender may demand, and the
Borrower shall execute, additional loan documents which are reasonably necessary to
perfect the lender’s security interests.
6. Representations and Warranties:
The Borrower represents and warrants: (i) that the execution, delivery and performance of
this agreement, and the Note and Security Documents have been duly authorised and are
proper; (ii) that the financial statement submitted to the Lender fairly presents the financial
condition of the Borrower as of the date of this agreement knowing that the Lender has
relied thereon in granting the Loan; (iii) that the Borrower has no contingent obligations not
disclosed or reserved against in said financial statement, and at the present time there are
no material, unrealised or anticipated losses from any present commitment of the Borrower;
(iv) that there will be no material adverse changes in the financial condition of the Borrower
at the time of the Loan Date; (v) that the Borrower will advise the Lender of the material
adverse changes which occur at any time prior to the Loan date and thereafter to the date
of final payment; and (vi) that the Borrower has good and valid title to all of the property
given as security hereunder. The Borrower represents and warrants that such
representations and warranties shall be deemed to be continuing representations and
warranties during the entire life of this agreement.
7. Default:
The Borrower shall be in default: (i) if any payment due hereunder is not made
within__________ (___) days of the date due; (ii) in the event of assignment by the Borrower
for the benefit of creditors; (iii) upon the filing of any voluntary or involuntary petition for
bankruptcy by or against the Borrower; or (iv) if the Borrower has breached any
representation or warranty specified in this agreement.
8. Governing Law:
This agreement, the Note(s) and the Security Document shall be governed by, construed
and enforced in accordance with the law of Tanzania to the jurisdiction of which the parties
hereto submit.
IN WITNESS OF WHICH the parties have signed this agreement the day and year first above
written
_____________________________ _______________________________
Signed by or on behalf of the Borrower Signed by or on behalf of the Lender
______________________________ _______________________________
In the presence of (witness) In the presence of (witness)
Name:__________________________ Nam: ___________________________
Address:________________________ Address: __________________________
Occupation:______________________ Occupation:________________________
