Debenture Short Form

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DEBENTURE SHORT FORM

THIS DEBENTURE is made on this {{date_of_debenture}} day of {{month}}, {{year}}

BY:

{{company_name}}, a company duly incorporated under the laws of [Country, e.g., South Africa] with registration number {{company_registration_number}} and having its registered office at {{company_registered_address}} (hereinafter referred to as "the Company" or "the Debtor").

IN FAVOUR OF:

{{debenture_holder_name}}, residing at {{debenture_holder_address}} / with registration number {{debenture_holder_registration_number}} and having its registered office at {{debenture_holder_registered_address}} (hereinafter referred to as "the Debenture Holder" or "the Creditor").

1. ACKNOWLEDGEMENT OF INDEBTEDNESS

The Company hereby acknowledges itself to be justly and truly indebted to the Debenture Holder in the principal sum of {{principal_amount}} ({{principal_amount_words}}) (hereinafter referred to as "the Principal Sum").

2. INTEREST

The Principal Sum shall bear interest at the rate of {{interest_rate}}% per annum, calculated daily and compounded {{compounding_frequency}} (e.g., monthly, annually). Interest shall accrue from the date of this Debenture.

3. REPAYMENT

The Principal Sum, together with all accrued interest, shall be repaid by the Company to the Debenture Holder in {{number_of_installments}} equal monthly installments of {{installment_amount}} each, commencing on {{first_repayment_date}} and continuing on the {{day_of_month}} day of each succeeding month thereafter until the entire Principal Sum and interest have been fully repaid.

4. SECURITY

As security for the repayment of the Principal Sum and interest, the Company hereby charges by way of a first floating charge [or specific charge, e.g., 'a mortgage over the property located at {{property_address}}', or 'a pledge over {{assets_description}}'] all of its present and future undertaking, property, and assets whatsoever and wheresoever situate, including its uncalled capital. This charge shall become fixed upon the occurrence of an Event of Default as defined herein.

5. REPRESENTATIONS AND WARRANTIES

The Company represents and warrants to the Debenture Holder that it has the power and authority to enter into this Debenture and to perform its obligations hereunder, and that this Debenture constitutes its legal, valid, and binding obligation.

6. EVENTS OF DEFAULT

The following shall constitute an "Event of Default" under this Debenture:

(a) If the Company fails to pay any amount due under this Debenture on its due date.

(b) If the Company breaches any other term or condition of this Debenture.

(c) If the Company ceases or threatens to cease to carry on its business.

(d) If an order is made or an effective resolution is passed for the winding-up of the Company.

7. REMEDIES ON DEFAULT

Upon the occurrence of an Event of Default, the Debenture Holder may, without prejudice to any other rights or remedies available to it, declare the entire outstanding Principal Sum and all accrued interest immediately due and payable, and may enforce the security hereby created.

8. GOVERNING LAW

This Debenture shall be governed by and construed in accordance with the laws of [Country, e.g., South Africa].

Signature Block

IN WITNESS WHEREOF, the parties have executed this Debenture Short Form on the date first above written.

For and on behalf of {{company_name}}:

_____________________________

Name: {{company_signatory_name}}

Designation: {{company_signatory_designation}}

Date: {{signature_date}}

_____________________________

{{debenture_holder_name}}

Date: {{signature_date}}

[WITNESSES (Optional)]

Witness 1:

Name: _______________________

Signature: ___________________

Witness 2:

Name: _______________________

Signature: ___________________