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A Debt Repayment Agreement is essential in South African commercial and consumer lending practices when parties need to formalize arrangements for settling outstanding debts. This document is particularly relevant when an existing debt needs to be restructured or when parties want to formalize payment terms for an acknowledged debt. The agreement must comply with the National Credit Act 34 of 2005 and other relevant South African legislation, making it suitable for various scenarios from personal loans to business debt restructuring. It typically includes detailed payment schedules, interest calculations, and default provisions, while offering flexibility to accommodate different types of debt situations. The document is crucial for protecting both creditor and debtor interests by providing clear terms and legal certainty regarding the debt repayment obligations.

1. Parties: Identification of the creditor and debtor, including full legal names, registration/ID numbers, and addresses

2. Background: Details of the original debt, circumstances leading to this agreement, and acknowledgment of the debt

3. Definitions: Key terms used in the agreement including 'Debt Amount', 'Repayment Term', 'Interest Rate', and 'Default'

4. Acknowledgment of Debt: Formal acknowledgment of the debt amount, including original principal, accrued interest, and any fees

5. Repayment Terms: Detailed payment schedule, including installment amounts, payment dates, and payment methods

6. Interest: Interest rate applicable, calculation method, and frequency of compounding

7. Payment Method: Specified method(s) of payment and banking details

8. Default Provisions: Consequences of missing payments and remedies available to the creditor

9. Breach and Acceleration: Circumstances constituting breach and creditor's right to demand full payment

10. Notices: How formal communications between parties should be made and delivered

11. General Terms: Standard contractual provisions including whole agreement, variation, and governing law