LOAN AGREEMENT
BETWEEN: INTERNATIONAL EDUCATION AGENCY OF PAPUA NEW GUINEA LIMITED, (called the Lender);
AND: _____________________________________________________________________
AN EMPLOYEE OF THE INTERNATIONAL EDUCATION AGENCY OF PAPUA NEW GUINEA LTD (called the Borrower)
The Borrower has requested the Lender to lend to the Borrower the Principal Sum of K_______________________.
The Lender has agreed to advance to the Borrower the Principal Sum at the interest rate of ___________% per annum flat/variable.
The Principal Sum together with interest is to be repaid by equal payments of K____________________.
The first such payment to be made on or before the _____________ day of __________________ 20_____ and fortnightly thereafter until satisfaction.
Final Payment date _________________ Day of _________________ 20______.
CONDITIONS
1. The Lender shall not be obliged to pay any part of the Principal Sum to the Borrower unless the Lender shall have received this Loan Agreement signed by the Borrower;
2. Rate of Interest
(a) The Borrower shall pay interest on the Principal Sum or on so much thereof as for the time being shall be drawn down and remain unpaid and upon any judgement or order in which these obligations may be merged at a rate equal to the amount specified until a review by the Lender pursuant to Clause 2(b) hereof.
(b) NOTWITHSTANDING the provisions of Clause 2(a) the rate of interest set out therein shall be reviewed by the Lender at any time and the Lender may increase or reduce the rate of interest in its discretion.
3. Interest Payment Provision
Interest at the rate specified above, computed from the date of draw down of the principal sum or any of its parts and shall be paid by installments arrears on the dates and in the amounts set out in the first installment to be deducted from the next fortnightly salary payment after draw down of the principal sum or any part thereof and each subsequent installment to be paid at the end of each fortnight thereafter until satisfaction.
4. Repayment of Principal
Subject to Clause 3 the Borrower shall repay the Principal Sum on the dates and in the amounts set out above. The Borrower authorises the Lender to deduct any installments of Principal or interest due to about to become due to any sum of money due and payable by the Lender to the Borrower, from fortnightly salary payments.
5. Early Repayment
The Borrower shall be entitled to repay the Principal Sum or any part thereof before the dates set out above.
6. Outstanding Debts
Any principal or interest owed to the IEA may be claimed from the borrower's final salary payment on cessation of employment or on completion of the borrower's contract. (Refer clause 2.8 of Employment Agreement).
SIGNATURES:
________________________________ ______/______/________
(Borrower) Date
________________________________ ______/______/________
Lender Date
K:\GENERAL\IEAFORMS\IEA-25 Loan Agreement.doc Rev. 2/01