Deed of Movable Hypothec

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DEED OF MOVABLE HYPOTHEC

Entered into by and between:

{{creditor_name}} (Registration Number: {{creditor_registration_number}}), a company duly incorporated and existing under the laws of the Republic of South Africa, with its registered address at {{creditor_address}} (hereinafter referred to as "the Creditor");

AND

{{debtor_name}} (Registration Number: {{debtor_registration_number}} or ID Number: {{debtor_id_number}}), a company duly incorporated/natural person residing at {{debtor_address}} (hereinafter referred to as "the Debtor").

WHEREAS:

A. The Creditor has granted/agreed to grant financial facilities to the Debtor in the amount of R{{loan_amount}} ({{loan_amount_words}}) (the "Principal Debt").

B. The Debtor has agreed to hypothecate its movable assets as security for the due and proper fulfilment of all its obligations to the Creditor.

DEFINITIONS AND INTERPRETATION

1.1. "Hypothecated Assets" means the movable assets more fully described in Annexure "A" hereto, including any additions, accessions, replacements, or improvements thereto.

1.2. "Principal Debt" means the amount of R{{loan_amount}} together with all interest, costs, charges, and expenses incurred by the Creditor in connection with the financial facilities.

1.3. Any reference to one gender shall include the other genders; any reference to the singular shall include the plural and vice versa; and any reference to a natural person shall include a juristic person and vice versa.

COVENANT TO HYPOTHECATE

3.1. The Debtor hereby hypothecates in favour of the Creditor, all its right, title, and interest in and to the Hypothecated Assets as continuing covering security for the due and punctual performance by the Debtor of all its present and future obligations to the Creditor, howsoever arising, including but not limited to the Principal Debt.

3.2. This hypothec shall be a general security for all amounts owing by the Debtor to the Creditor from time to time, up to a maximum amount of R{{maximum_security_amount}} ({{maximum_security_amount_words}}).

DEBTOR'S UNDERTAKINGS

4.1. The Debtor undertakes to keep the Hypothecated Assets in good order and repair and to notify the Creditor immediately of any damage to or loss of the Hypothecated Assets.

4.2. The Debtor shall not sell, alienate, encumber, or otherwise dispose of the Hypothecated Assets without the prior written consent of the Creditor.

4.3. The Debtor shall insure the Hypothecated Assets for their full replacement value against all risks with an insurer approved by the Creditor, and ensure that the Creditor's interest is noted on the policy.

4.4. The Debtor shall allow the Creditor or its authorised representatives access to inspect the Hypothecated Assets at all reasonable times.

EVENTS OF DEFAULT

5.1. The Debtor shall be in default if:

a) The Debtor fails to pay any amount due to the Creditor on the due date.

b) The Debtor breaches any term or condition of this Deed or any other agreement between the Debtor and the Creditor.

c) The Debtor becomes insolvent or is placed under judicial management or liquidation, whether provisional or final.

d) Any judgment is granted against the Debtor which remains unsatisfied for a period of {{days_unsettled_judgement}} days.

e) The Hypothecated Assets are attached or encumbered by any third party.

CREDITOR'S RIGHTS ON DEFAULT

6.1. Upon the occurrence of an event of default, the Creditor shall be entitled, without prejudice to any other rights it may have, to:

a) Claim immediate payment of all amounts due by the Debtor.

b) Take possession of the Hypothecated Assets.

c) Sell the Hypothecated Assets, in whole or in part, by public auction or private treaty, and apply the proceeds towards satisfaction of the Debtor's obligations.

d) Institute legal proceedings for the recovery of all amounts due and/or for the enforcement of this Deed.

GENERAL PROVISIONS

7.1. This Deed constitutes the entire agreement between the parties with regard to the subject matter hereof and supersedes all prior agreements, understandings, and representations.

7.2. No variation, amendment, or waiver of any provision of this Deed shall be effective unless in writing and signed by all parties.

7.3. This Deed shall be governed by and construed in accordance with the laws of the Republic of South Africa.

7.4. The parties choose as their *domicilium citandi et executandi* for all purposes under this Deed their respective addresses set out in this Deed.

ANNEXURE "A": DESCRIPTION OF HYPOTHECATED ASSETS

{{asset_description_1}}

{{asset_serial_number_1}}

{{asset_value_1}}

{{asset_description_2}}

{{asset_serial_number_2}}

{{asset_value_2}}

(Add more as required)

SIGNATURES

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

_________________________

For: {{creditor_name}}

Duly authorised

_________________________

For: {{debtor_name}}

Duly authorised/Debtor