Document background
The Finance Agreement is a crucial document used in South African financial transactions to formalize lending arrangements between financial institutions and borrowers. It must comply with strict regulatory requirements, particularly the National Credit Act 34 of 2005, the Financial Intelligence Centre Act, and other relevant financial sector legislation. This agreement is essential when providing credit facilities, term loans, revolving credit facilities, or other financing arrangements. It includes comprehensive details about the facility amount, purpose, interest calculations, repayment terms, security arrangements, representations and warranties, and events of default. The document incorporates mandatory consumer protection provisions and requires specific disclosure statements as prescribed by South African law. It's designed to protect both the lender's interests in securing repayment and the borrower's rights under consumer protection legislation.
