Deed of Movable Hypothec

Letterhead

{{company_name}}

{{company_address}}

Tel: {{phone}}

Email: {{email}}

Website: {{website}}

DEED OF MOVABLE HYPOTHEC

Entered into by and between:

{{hypothecator_name}} (Registration Number: {{hypothecator_registration_number}}), a company duly incorporated in accordance with the company laws of the Republic of South Africa, with its registered address at {{hypothecator_address}} (hereinafter referred to as "the Hypothecator")

and

{{hypothecary_name}} (Registration Number: {{hypothecary_registration_number}}), a company duly incorporated in accordance with the company laws of the Republic of South Africa, with its registered address at {{hypothecary_address}} (hereinafter referred to as "the Hypothecary")

WHEREAS

A. The Hypothecator is indebted to the Hypothecary in the amount of {{debt_amount}} ({{debt_amount_words}}) collectively referred to as the “Principal Debt”, arising from {{reason_for_debt}}.

B. The Hypothecator has agreed to hypothecate its movable property to the Hypothecary as security for the due and proper fulfilment of its obligations to the Hypothecary.

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. **GRANT OF HYPOTHEC:** The Hypothecator does hereby hypothecate to the Hypothecary, in security for the due and proper fulfilment of all its obligations to the Hypothecary, all the movable property described in Schedule A annexed hereto (“the Hypothecated Assets”).

2. **POSSESSION OF HYPOTHECATED ASSETS:** The Hypothecated Assets shall remain in the possession of the Hypothecator, who shall hold them on behalf of and as agent for the Hypothecary.

3. **WARRANTIES AND UNDERTAKINGS:** The Hypothecator warrants that it is the lawful owner of the Hypothecated Assets and that they are not subject to any other hypothec, lien, or encumbrance whatsoever. The Hypothecator undertakes not to alienate, encumber, or dispose of the Hypothecated Assets without the prior written consent of the Hypothecary.

4. **INSURANCE:** The Hypothecator shall, at its own expense, keep the Hypothecated Assets insured against all risks for their full replacement value, with an insurer approved by the Hypothecary. All policies of insurance shall be ceded to the Hypothecary as security.

5. **DEFAULT:** Should the Hypothecator fail to pay the Principal Debt or any part thereof on the due date, or fail to observe or perform any of the terms and conditions of this Deed of Movable Hypothec, then the Hypothecary shall be entitled, without prejudice to any other rights it may have, to take possession of the Hypothecated Assets and to sell them, either by public auction or private treaty, on such terms and conditions as the Hypothecary may deem fit, and to apply the proceeds of such sale towards satisfaction of the Principal Debt and all costs incurred.

6. **NO WAIVER:** No indulgence, leniency or extension of time which the Hypothecary may grant to the Hypothecator shall in any way prejudice the Hypothecary or be construed as a waiver of any of its rights hereunder.

7. **COSTS:** All costs and expenses of and incidental to the preparation and registration of this Deed of Movable Hypothec shall be borne by the Hypothecator.

8. **GOVERNING LAW:** This Deed of Movable Hypothec shall be governed by and construed in accordance with the laws of the Republic of South Africa.

9. **DOMICILIUM:** The parties choose domicilium citandi et executandi for all purposes arising out of or in connection with this Deed of Movable Hypothec at their respective addresses set forth above.

SCHEDULE A: DESCRIPTION OF HYPOTHECATED ASSETS

- {{asset_1_description}}, Serial Number: {{asset_1_serial_number}}, Value: ZAR {{asset_1_value}}

- {{asset_2_description}}, Serial Number: {{asset_2_serial_number}}, Value: ZAR {{asset_2_value}}

- {{asset_3_description}}, Serial Number: {{asset_3_serial_number}}, Value: ZAR {{asset_3_value}}

*(Add more assets as required)*

SIGNATURES

THUS DONE AND SIGNED at {{place_of_signing}} on this the {{day_of_signing}} day of {{month_of_signing}} {{year_of_signing}}.

**___________________________**

**For: {{hypothecator_name}}**

Name: {{hypothecator_signatory_name}}

Designation: {{hypothecator_signatory_designation}}

**___________________________**

**For: {{hypothecary_name}}**

Name: {{hypothecary_signatory_name}}

Designation: {{hypothecary_signatory_designation}}

**WITNESSES:**

1. ___________________________

Name: {{witness_1_name}}

2. ___________________________

Name: {{witness_2_name}}