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The Loan Origination Agreement serves as the primary document for establishing lending relationships in South Africa, subject to the National Credit Act and related financial services legislation. This document is essential when financial institutions or authorized lenders extend credit facilities to borrowers, whether corporate entities or individuals. It captures all critical aspects of the lending arrangement, including facility terms, security requirements, drawdown mechanics, and compliance obligations. The agreement must align with South African banking regulations, consumer protection laws, and anti-money laundering requirements, making it a crucial tool for risk management and regulatory compliance in lending operations. The document's structure and content are designed to protect both lender and borrower interests while ensuring transparency and enforceability under South African law.

1. Parties: Identification and details of the Lender and Borrower, including registration numbers for companies or ID numbers for individuals

2. Background: Context of the loan agreement, purpose of the facility, and any relevant historical information

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. The Facility: Details of the loan amount, purpose, and any tranching arrangements

5. Conditions Precedent: Conditions that must be satisfied before the loan becomes available

6. Drawdown: Procedures and requirements for requesting and receiving loan disbursements

7. Interest: Interest rate, calculation method, payment periods, and default interest provisions

8. Repayment: Repayment schedule, method of payment, and prepayment provisions

9. Security: Details of any security or collateral required for the loan

10. Representations and Warranties: Statements of fact and assurances given by the Borrower

11. Covenants: Positive and negative obligations of the Borrower during the loan term

12. Events of Default: Circumstances constituting default and consequences thereof

13. Costs and Expenses: Allocation of transaction costs and ongoing expenses

14. Notices: Communication procedures and contact details

15. Governing Law and Jurisdiction: Specification of South African law and jurisdiction for disputes

16. Execution: Signature blocks and execution formalities