R 980,79 Original price was: R 980,79. Current price is: R 686,55.
A cession and pledge of goods agreement is a helpful tool for borrowers who need to secure a loan or debt.
Summary A Cession & Pledge of Goods Agreement Template South Africa [Microsoft Word Doc] may be used where a debt is owed or may in the future be owed by a person, and additional security is required. By signing a Cession Agreement, the debtor agrees to transfer to the creditor the right to the goods being ceded or pledged should the debtor default. The ceded goods may include, for example, shares, insurance policies, or an investment account.
Why do I need a Cession of Goods? A Cession & Pledge of Goods contract affords you as the creditor additional security. If the debtor defaults in payment, you may use an agreement of cession to claim the goods that the debtor has ceded / pledged. A contract for the Cession & Pledge of Goods is often used as an additional security requirement when a customer applies for a credit facility, before any goods or services are delivered. It can also be used to obtain additional security before lending someone money or goods and equipment.
What type of business should use contracts of cession? If your business has debtors that owe money, or there is a high likelihood that they will in the future owe money, then a Cession and Pledge may be considered to reduce your risk should the debtor default.
What does the contract look like? The Cession contract template can be printed onto two pages.
What do you need to do to use the Cession?
If the transaction is subject to the National Credit Act 34 of 2005 then we recommend that specialist advice be obtained.
Cession and Pledge of Goods Agreement Template South Africa [Microsoft Word Doc]
A cession pledge of goods agreement/ pledge agreement is a legal document used to create mandatory provisions for a security interest in collateral (such as goods, partnership interests, stock powers, capital stock or investment property) as a form of collateral for a loan. The pledge agreement specifies what such collateral is, the rights and obligations of the parties involved, including the legal and beneficial owner of the collateral (the “cedent”) and the lender (the “secured party”) as well as things such as the competent jurisdiction, any expenses incurred that are to be repaid, such action as would constitute a breach of the security agreement or pledge agreement and any further assurances made under the pledge agreement .
Under this agreement, the cedent pledges the collateral to the secured party as security for the loan (Such as capital stock, equity interests, security interests etc). The security interest in the collateral is created by the cedent ceding (assigning) all of its rights and interests in the collateral to the secured party. The cedent retains possession of the collateral unless otherwise agreed upon in the agreement.
The cession pledge of goods agreement includes various clauses and provisions that are important to understand, such as the rights and remedies of the secured party in the event of default by the cedent, the process for selling the collateral in the event of default, and the procedures for giving notice to the cedent.
One important clause in the agreement is the provision allowing for the public or private sale of the collateral in the event of default. The agreement will specify the manner in which such sale is to be conducted and will require the secured party to give reasonable advance notice to the cedent of the proposed sale.
Another important clause is the provision stating that the agreement creates a security interest in the collateral. This clause establishes the priority of the secured party’s security interest in the collateral over the cedent’s other creditors.
The agreement may also contain provisions specifying the applicable law, the powers of the secured party, and the requirement for the cedent to execute financing statements and continuation statements as necessary.
In the event of default by the cedent, the secured party may exercise such rights and remedies as are available under the agreement and under applicable law, including the right to take possession of the collateral and sell it in accordance with the agreement.
Some Highlights of this agreement:
Overall, the cession pledge of goods agreement is an important legal document that protects both the cedent and the secured party in a loan transaction. It ensures that the collateral is used as security for the loan and that the secured party has the right to sell the collateral in the event of default by the cedent. It also provides a clear understanding of the rights and obligations of the parties involved and the procedures for enforcing the agreement in the event of default.
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Our documents are provided in MS Word format, allowing you to adjust and alter the agreement as you require. If you do not have legal experience we do caution you to be circumspect about the extent of the changes that you make.
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