Application

For

Credit Facility

CREDIT APPLICATION FORM

Division / Department/Subsidiary in Armscor: ______

Registered name of entity
(hereafter called the applicant) / :
Trading as / :
Holding company / :
Principal business activity / :
Company registration number / :
Date established / :
Period under present ownership / :
VAT registration number / :
Registered physical address (domicilium citandiet executandi) / :
Code / :
Principal place of business / :
Owner or tenant at principal place of business / :
Postal address / :
Code / :
Contact person for account related enquiries. / :
Telephone number / :
Fax number / :
E-mail address / :
Name of banking institution / :
Branch name and code / :
Account number / :
Credit limit required / :

NAMES OF DIRECTORS / MEMBERS / PARTNERS

Directors
-full names- / Residential address / ID number
AUDITOR DETAIL
Auditors / :
Contact person / :
Telephone number / :
TRADE REFERENCES
Name / Address / Contact person / Tel number / Average monthly purchases
1.
2.
3.
4.
Previous and current contracts with Armscor SOC Ltd or any of its divisions:
Armscor Department / Division / Contract Number
1.
2.
3.
4.
5.

Note:

Kindly ensure that this application is completed correctly and in full. An incomplete form may delay processing.

The following documents should be attached to the application. If unable to provide any of the under mentioned documents a written explanation should be attached:

Companies

- VAT103 – VAT Registration

- Certified copies of company registration documents from CIPC

CoR15.1 Incorporation document,

COR15.2 Notice of Amendment of Memorandum of Incorporation (If applicable)

CoR39 Certificate of Confirmation / Certificate of Directors Amendment,

CoR9.4 Defensive name

-Memorandum of Incorporation (MOI)

-Name change documents issued by CIPC for all previous names

-Cancelled cheque or original bank letter

-Copy of Title Deed or Leasing Agreement if operating from leased premises or copy of council account

-Valid Original Tax Clearance Certificate or Tax Compliance PIN Code with Authorization letter

-Copy of latest Audited Annual Financial Statements or published annual report

-Copy of Identification Documents of all directors/members

-Copy of Shareholder Certificates or declaration stating the full names and identification numbers of all shareholders signed by at least 2 directors.

Individuals / sole proprietors and partnerships

- VAT103 – VAT Registration

-Partnership agreement or declaration signed by all partners as proof that the partner signing the agreements are duly authorised

-Cancelled cheque or original bank letter

-Copy of Title Deed or Leasing Agreement if operating from leased premises or copy of council account

-Valid Original Tax Clearance Certificate or Tax Compliance PIN Code with Authorization letter

-Copy of latest Audited Annual Financial Statements

-Copy of Identification Documents of all partners or individual

All copies should be certified within 3 months of submission of the application.

I, the undersigned, hereby certify that the information provided is true and correct and that I am duly authorised to sign this document. I accept that incomplete information will delay the processing of this application.

I hereby authorise Armscor to process or request the company information.

Signed at ______on the_____day of ______20___

______

Name Identification Number Capacity

______

Signature

INITIAL

A-FORM-0032ISSUE: 02Page 1 of 16

Appendix B – CREDIT AGREEMENT

TERMS AND CONDITIONS

______

(hereinafter referred to as “the applicant”) applies for credit facilities at

ARMAMENTS CORPORATION OF SOUTH AFRICA (ARMSCOR) SOC LTD

(hereinafter referred to as “the credit grantor”) in respect of goods to be suppliedand/or services to be rendered to the applicant, subject to the following terms and conditions:

  1. Notwithstanding the granting of credit facilities to the applicant, the credit grantor is entitled, at any time, and in its sole discretion, to withhold such facilities and require payment for an account which is due.
  2. The applicant undertakes to settle every account rendered within a period of 30 (thirty) days from the date of issue of the invoice.
  3. If the applicant fails to pay the full amount within a period of 30 (thirty) days, the applicant agrees to pay capitalised interest on the outstanding balance at one and a half (1, 5%) presentper month. Interest will be calculated 45 (forty-five) days from the date of invoicing to the date of payment.
  4. The applicant undertakes to pay all legal expenses incurred by thecreditgrantor in connection with the recovery of amounts payable by theapplicant, including collection and tracing agent charges which may be payable in respect of the collection of such amounts. Payment by the applicant will be used to defray the expenses incurred by thecreditgrantor before the capital amount is reduced.
  5. The applicant hereby agrees that a certificate signed by the general manager (or an equivalent of such executive appointment) or its duly authorised representative, showing the total amount owed by the applicant, shall be prima facie proof that the amount is owed to enable the credit grantor to obtain summary judgment against the applicant in terms of this application for the amount listed in such certificate, and the onus shall rest upon the applicant to prove that the amount thus listed is not due.
  6. The applicant acknowledges that the credit grantor is providing this credit facility based on the applicant’s financial position, and current circumstances, and the applicable sureties.The applicant understands and agrees that particular credit has been/is given. In the event or series of events occurring which in the opinion of the credit grantor has or may be expected to have material adverse effect on the ability of the applicant to comply with its obligations in terms of this credit facility or the surety to comply with such obligations under suretyship, the credit grantor shall, by giving written notice within 14 days of change, have the right to change the terms and conditions of this credit facility subject to approval by Armscor. In the event that the amended/altered/varied terms and conditions upon which the credit grantor is prepared to continue to make the credit facility available are not acceptable to the applicant, all outstanding accounts shall without further notice immediately become due and payable. The applicant shall immediately effect payment of such outstanding amounts.
  7. The applicant agrees that the addresses given on the first page hereof are the applicant’s domicilium citandi et executandi for all purposes under this application, whether in respect of court proceedings, notices or other documents or communications.
  8. If the credit grantor should deem it necessary to institute legal proceedings for recovery of all amounts payable by the applicant, then the applicant consents, in terms of the National Credit Act, 34 of 2005, that the creditgrantor is entitled to bring action in the relevant court of law irrespective of the amount of the claim, provided that such Court has jurisdiction

It is entirely within the discretion of the credit grantor whether to proceed against the surety in such Magistrate’s Court or any other Court with jurisdiction.

  1. The applicant undertakes to notify the credit grantor by prepaid registered post, within seven (7) working days, of all changes after submission of this application to Armscor.
  2. The applicant hereby authorises the credit grantor to conduct a credit clearance at any credit bureau.
  3. Should the applicant require extended credit facilities, the applicant undertakes to apply for consent of the credit grantor to a variation of the above conditions before the debt is incurred, and in such event the applicant agrees to abide by all conditions or stipulations imposed by the creditgrantor as a condition precedent to granting such extended facilities.

I, ______(in BLOCK LETTERS) in my capacity as

______, being duly authorised and empowered to sign this application on behalf of theapplicant, declare that I have read and that I understand and agree to the terms and conditions herein.

The applicant acknowledges that he knows and understands the meaning and effect of the benefits and agrees to the terms and conditions pertaining to this credit agreement.

(*Delete which is not applicable)

For and on behalf of:______

(The applicant)

Signed at ______on this ______day of ______20__.

______

Name & ID No Name & ID No

______

Signature Signature

Applicant Witness

For and on behalf of:______

(The credit grantor)

Signed at ______on this ______day of ______20__.

______

Name & ID No Name & ID No

______

Signature Signature

Credit Grantor Witness

DEED OF SURETYSHIP

(Only applicable to Sole Proprietors, Close Corporations and owner-managed private companies)

Armscor SOC Ltd(hereinafter referred to as “the creditor”)

  1. I /We the undersigned

______IDNo______

Full address of sureties______

______

______IDNo______

Full address of sureties______

______

______IDNo______

Full address of sureties______

______

______IDNo______

Full address of sureties______

______

Do hereby bind myself/ourselves, as surety/ies and co-principal debtor/s jointly and severally and in solidium with:

(hereinafter referred to as “the principal debtor”)

unto and in favour of the creditor or any of its associated, subsidiary, divisions and agent companies or its successors in title or assigns for the due and punctual payment of all amounts of whatsoever nature and/or for the performance of an obligation all of which may now or in the future become due, payable or owing by the principal debtor/s to the creditor for any reason whatsoever.

  1. The creditor shall be at liberty, in its sole and absolute discretion, without my/our prior knowledge or consent, and without releasing me/us from my/our liability hereunder:

i)to institute such proceedings or take such steps as it may deem fit against the principal debtor, including the right to repossess any goods sold to the debtors and to deal therewith or sell same in such manner, at such price and on such terms as the creditor in its sole discretion may decide, in which event the selling price shall be deemed to be the true market value of the goods sold;

ii)to compromise with or make arrangements with the principal debtor/s and/or with other sureties:

iii)to grant any leniency, indulgence or extension of time to the principal debtor/s or vary any agreement undertaking and /or arrangement with the principal debtor/s in any other manner whatsoever;

iv)to enter into agreements of cancellation with the principal debtor/s in respect of any existing or future arrangement and/or to enter into new arrangements;

v)to cede, assign and/or transfer any of its right, title and interest in and to any or all of its claims against the principal debtor/s which are now in existence or may come into existence in its own discretion and on such cession my/our liability shall continue in favour of the cessionary for both the existing liability at the date of the cession and also in respect of any future liability incurred by the principal debtor/s with the cessionary arising from any cause whatsoever.

  1. In any and all the events described above, my/our liability shall be co-existent with that of the principal debtor/s.
  2. I/We hereby waive and renounce the exceptions and/or benefits of “excussion”, “division”, “cession of action” “error calculi, “non numeratae pecuniae”, revision of accounts and the “de doubus vel pluribusreis” with the full force and effect of the meanings and renunciations, of which I/we acknowledge ourselves to be acquainted with.
  3. It is agreed and declared that all admissions or acknowledgements of indebtedness by the principal debtors/s shall be binding on me or us.
  4. This deed of suretyship shall not be cancelled save with the written consent of the creditor.
  5. No addition to variation or consensual cancellation of this deed of suretyship shall be of any force or effect unless in writing and signed by or on behalf of the parties.
  6. In the event of insolvency, business rescue or compromise by the principal debtor/s, the creditor shall be entitled to prove against the estate for the full amount of the indebtedness and/or to accept any offer of compromise, whether at common law or in terms of any statutory provision, without prejudice to its rights to recover from me/us to the full extent hereof any sum which may be owing by the principal debtor/s.
  7. We acknowledge that a certificate signed by the Chief Financial Officer of the creditor setting out the amount of my/our indebtedness hereunder shall be sufficient and satisfactory evidence and shall constitute prima facie proof per se of the amount of my/our indebtedness to the creditor.
  8. The creditor shall be at liberty, without discharging me/us from liability hereunder, to grant time or other indulgence to the principal debtor/s and shall likewise be at liberty to give such terms to and make conditions with the principal debtor/s and the creditor shall think fit, and at all times to alter, vary and revise the same or any part thereof, as the creditor may consider advisable in its own interests, without reference to me/us, and the creditor shall also be at liberty to take any security which it may think fit from the principal debtor/s or any other surety/ies and in its discretion to realise and discharge or otherwise deal with any such security/ies or any part thereof.
  9. I/We do hereby choose my/our domicilium citandi et executandi for all purposes arising here out at the address set out underneath my/our signatures.

Signed at ______on this ______day of ______20__.

______

Name & ID No Name & ID No

______

Signatureas Surety / Sureties Signature as Surety / Sureties

______

Name & ID No Name & ID No

______

Signature Witnesses Signature Witnesses

______

Name & ID No Name & ID No

______

Signature Witnesses Signature Witnesses

______

Name & ID No Name & ID No

______

Signature as Surety / Sureties Signature as Surety / Sureties

______

Name & ID No Name & ID No

______

Signature Witnesses Signature Witnesses

__

______

Name & ID No Name & ID No

______

Signature Witnesses Signature Witnesses

For Official Use Only

Confirmation of all applicable documents attached

Done by: ______

Signature: ______

Date: ______

Credit Check

Credit check done by: ______

Type of credit check: ______

Date: ______

Signature: ______

Risk Assessment

Assessment done by: ______

Documents attached of risk assessment:

-Credit application with all documents received from debtor

-Credit bureau report

-Annual financial report analysis

Bank code: ______

Remarks: ______

______

______

Recommendation: ______

.

Date: ______

Signature: ______

Approval

Submission number: ______

Submission date: ______

Credit limit approved: ______

Registration of debtor / accounts receivable and upload of credit limit

Done by: ______

Signature: ______

Date: ______

INITIAL:

A-FORM-032ISSUE: 1Page 1 of 16