Memorandum of Borrowers' Terms & Conditions
Borrower/Co-Borrower/Guarantor (I/We), hereby agree to the following terms and conditions governing the loan facility provided by WILCO Finance Limited (hereinafter called “WILCO”). I have sought and obtained independent legal advice prior to the signing of this Agreement.
1
All information provided to WILCO, is to the best of my/our knowledge, true and correct and was not provided by me/us, or any party to whom I/we delegated responsibility, to mislead WILCO. I/We agree to disclose the details and status of all existing loan facilities and financial obligations, so that WILCO can properly assess the risk of doing business with me/us.
2
I/We will honour all agreements made regarding loan repayment schedule and mode of loan repayment. Where there is a change of employer due to resignation or my services otherwise terminated, or where there are other material change(s) that negatively affect affordability and hence the ability to repay loan as agreed, I/we will communicate these adverse changes to WILCO in writing, prior to next Payment Due Date. WILCO may at its sole discretion, agree to any new arrangements to repay the loan. Failing this, I/we understand that WILCO may Call this loan – and issue a Payment Demand Notice for this loan to be settled in full.
3
I/We intend to settle all loans and financial obligations entered into with WILCO, according to the agreed terms and conditions. Where unforeseen factors affect my/our ability to honour these agreed terms and conditions, I/we understand that I/we would be in breach of these terms and conditions and will communicate with WILCO prior to next Payment Due Date.
4
I/We hereby understand and agree that where I/we am/are in breach of this contract and specifically, where I/we fail to meet my/our financial obligations according to agreed terms and conditions, WILCO retains the right to take whatever legal actions are required to recover any outstanding amounts due.
5
I/We hereby authorize WILCO to make contact with any Third Party, including but not limited to – current employer, previous employer, landlord, referees, and any other party, as it relates to (a) verification of information provided by me/us in connection with my/our loan application, and (b) undertaking actions to recover amounts outstanding or to make reasonable and/or suitable arrangements to recover same. Where information received subsequent to the disbursement of a loan, contradicts information received initially, and affects negatively the assessment of the risks relating to said loan, I/we understand that WILCO reserves the right to Call the loan by issuing a Payment Demand Notice.
6
In the event of my/our death or termination of employment, I/we authorize my/our employer to remit to WILCO any outstanding balances – from amounts due to me/us from proceeds of redundancy payment, insurance policies, vacation pay, internal savings plan or any such amounts due from employer – to the extent that such a payment does not contravene any law. This agreement is irrevocable on my part until loan is fully settled or with the written consent of WILCO.
7
Payment Due Date: I/we acknowledge and agree that this is the earlier of (a) the date my salary is paid by my employer and (b) the date agreed to by me/us and WILCO, in preparing the relevant loan documents.
8
Mode of loan repayment: I/we understand and agree that – Salary deductions; Bank Direct Debits; Post-dated Cheques, and other arrangements made initially in terms of mode of loan repayment, are for the duration of the loan – unless otherwise specified – and should not be cancelled or amended without the written consent of WILCO, as such action would constitute a fundamental breach of the loan agreement. Additionally, the following grace periods are applicable per mode of loan repayment:
- Salary deductions; 7 days
- Bank Direct Debits/Standing orders; 5 days (different bank-to-bank transaction).
- Bank Direct Debits/Standing orders; 2 days (same bank-to-bank transaction).
- All other modes of loan repayment; 3 days (example; post-dated cheques and over-the-counter payments).
9
Fees and Service Charges: I/we hereby acknowledge being aware and in receipt of a current copy of WILCO’s Schedule of Fees and Service Charges, and/or have decided to do on approval/before disbursement of any loan proceeds, in keeping with WILCO’s policy of disclosure of Fees and Service Charges.
10
Delinquency and Debt Collection Services: Loans Past Due or otherwise Delinquent – with no written alternative agreement to settle amounts outstanding will be submitted to External Debt Collectors, Independent Collections Officers, Attorney(s)-at-Law or otherwise transferred to a third-party, who will levy a charge to the Delinquent client/debtor for their services. I/We agree that in such cases, WILCO will charge such expenses invoiced by such a third-party(ies), directly to my/our loan.
11
All Assets being pledged as collateral will be recorded on a Bill of Sale (Security Agreement). I/We hereby agree that WILCO or its authorized Third-Party will be allowed to inspect such collateral as are pledged, upon request. I/We hereby agree that where such assets no longer meet WILCO’s Collateral requirement (either due to impairment in value, obsolescence, expiration of insurance coverage or any other factor that affects its usefulness as loan collateral), I/we will be required to notify WILCO in writing of the change and provide additional suitable collateral to WILCO or formalize new agreement(s) with WILCO to reduce such high risks caused by unsuitable collateral. I/We understand that where I/we fail to address such issues relating to unsuitable collateral, WILCO reserves the right to Call my/our loan by the issuance of a Demand for Payment Notice.
