Private and Confidential
Our Ref: [ ]
Date: [ ]
To: [ Name of Hirer ]
[ Address ]
Dear Sirs
HIRE PURCHASE OF VEHICLES
We, Oversea-Chinese Banking Corporation Limited (the “Bank”), are pleased to extend to you a non-revolving hire purchase facility of up to an aggregate limit of S$500,000.00 subject to the terms and conditions herein and in the Bank’s standard form hire purchase agreement to be entered into between the Bank and you (the “Hire Purchase Agreement”) and the Bank’s Terms and Conditions Governing Facilities.
1. Hire Purchase Facility (The “Facility”)
A non-revolving reducing hire purchase facility in respect of new and used rental passenger / commercial vehicles (together with all parts, replacements and renewals thereof and all additions which become the property of the Bank, and accessories thereto and, wheresoever the context admits, includes each item comprised therein) (the “Vehicles”) of up to an aggregate limit of Singapore Dollars Five Hundred Thousand Only.
2. Financing Limit
· New Passenger And Commercial Vehicles
A maximum of 90% of the purchase price of new passenger or commercial vehicle.
· Used Passenger Vehicles
A maximum of 90% of the purchase price or market valuation as determined by the Bank, whichever is lower, of used passenger vehicle.
· Used Commercial Vehicles
A maximum of 85% of purchase price or market valuation as determined by the Bank, whichever is lower, of used commercial vehicle.
Where the Financing Limit determined by the Bank in accordance with the foregoing is in currency other than that in which the Facility is denominated, the Bank will make available the equivalent in Singapore Dollars based on the exchange rate prevailing on the date agreed to by you and the Bank.
3. Period Of Hire / Pricing
Period of Hire/Pricing for Passenger Vehicles (New & Used)
PERIOD / ADVANCE PAYMENT / EFFECTIVE RATE(Mths) / (%pa flat) / (%pa)
12
24
36
48
60
72
Period of Hire/Pricing for Commercial Vehicles (New & Used)
PERIOD / ADVANCE PAYMENT / EFFECTIVE RATE(Mths) / (%pa flat) / (%pa)
12
24
36
48
60
72
The above rates may be subject to change according to prevailing market conditions and may be varied at the Bank’s sole and absolute discretion.
4. Repayments
The Facility or the hire purchase price(s) shall be repaid by equal monthly instalments or such other instalments as may be specified or fixed by the Bank by notice to you in writing and each first instalment shall be payable on commencement date stated in the relevant Hire Purchase Agreement. You shall pay the monthly instalments or hire promptly on the due dates. Any amounts repaid under the Facility shall not be available for further utilisations.
5. Security / Support
The Facility shall be supported by a [ joint and several personal guarantee from (state names and NRIC nos.) ] / [ corporate guarantee of (state name) ].
6. Insurance
Each of the Vehicles shall be adequately insured under a “Third Party” policy taken up, at your sole expense, in the joint names of you (as hirer) and the Bank (as owner) against loss or damage by accident, fire, burglary, strikes, riots, civil commotion and theft and such other risks as the Bank may consider fit to the full insurable value thereof on such terms and conditions, and with an insurer acceptable to the Bank. Without prejudice to the generality of the foregoing, there shall be a non-cancellation clause and it must be stated therein that all payment under the policy be made to the Bank as owner.
In the event of non-payment of any insurance premium, the Bank shall be entitled to debit the same from any of your account(s) maintained with the Bank.
67. Late Payment Charges
If you fail to pay any instalment or other sum(s) becoming due and payable under the Facility and/or any of the Hire Purchase Agreement(s) then you shall pay interest on such sum from the date the same became due and payable at the rate of five per cent (5.0%) p.a. above OCBC’s prime lending rate then prevailing to the date of actual payment as well after as before judgment obtained. [To be deleted upon confirmation that this clause is reflected in the HP Agreement]
7. Conditions Precedent
The Facility will only be available for your use from time to time upon completion of all matters and documentation to the satisfaction of the Bank and upon the receipt of and subject to the following conditions being compiled with (in form and substance acceptable to the Bank):
7.1 The duplicate copy of this facility letter, the Hire Purchase Agreement in respect of the relevant Vehicle financed under the Facility, corporate or personal guarantee and all other documents in form and substance all duly executed and acceptable to the Bank.
7.2 In the case of a corporate, your company’s Board Resolutions and that of the guarantor, if it is a corporate, in the Bank’s prescribed format and duly certified by 2 directors or a director and the company secretary.
7.3 Evidence satisfactory to the Bank that the deposit for the relevant Vehicle has been paid to the vendor of such Vehicle.
7.4 Evidence satisfactory to the Bank that the relevant vehicle has been delivered to the hirer.
7.5
Evidence satisfactory to the Bank that insurance has been taken out in respect of the relevant Vehicle in accordance with Condition 6 above.
7.6
Invoice from the vendor of the relevant Vehicle stating the cost and details of such Vehicle.
8.1 Evidence that all monies, fees, costs and expenses due and payable in connection or on account of the Facility have been paid.
8.2 There is no material adverse change in your circumstances or in the value of any Vehicle or any other factors affecting our decision to grant or continue to grant the Facility.
[9. Availability Period
Subject to fulfilment of all Conditions Precedent, the Facility shall be available for utilisation not later than the date falling [no.] (no.) months from the date of this letter or such other date as agreed to by the Bank in writing. You shall indemnify the Bank for any loss (including loss of profit), premium, penalty or expense which may be incurred in liquidating or employing deposits from third parties (acquired to make maintain or fund the Facility or any part thereof) as a result of the Facility remaining undrawn or only partly drawn at the end of the Availability Period.]
10. Goods and Services Tax
It is hereby agreed that any sum payable by you under the Facility shall be exclusive of any applicable Goods and Services Tax, imposition, duty, fees of any kind and levy whatsoever ("Taxes") which may from time to time be imposed, charged or increased before, on or after the date of this letter by any government, statutory or tax authority. In the event that the Taxes are required by law to be paid on or in respect of any sums payable by or to the Bank relating to this letter, the same shall be borne by you, be it of retrospective effect or not, and you shall pay to the Bank on demand the Taxes in addition to all other sums payable to the Bank and the Bank shall be entitled to make any claims against you for reimbursement of the Taxes.
811. Indemnity
You agree to indemnify the Bank, its officers, directors, agents and employees (the “Indemnified Persons”) on demand at all times against each and every liability (whether civil or criminal), Taxes, loss, charge, claim, proceeding, damage, judgment, enforcement, penalty, fine, costs (including legal costs) and expense of whatsoever nature suffered or incurred by or imposed on any Indemnified Person from time to time in connection with any of the Vehicles, any Hire Purchase Agreement, this facility letter, purchase, sale, ownership, use, operation or hiring of any of the Vehicles, any product or strict liability relating to any of the Vehicles or pursuant to any Hire Purchase Agreement or any other document.
9.12. Inconsistency of Terms
In the event of any inconsistency between the terms and conditions of this letter (as amended, modified, revised or supplemented from time to time) and the terms and conditions of the Hire Purchase Agreement(s) to be entered by you and the Bank, the latter shall prevail, provided always that no inconsistency is deemed to have arisen or shall be treated as having arisen by reason only that matters addressed in the latter are not specifically addressed in the former or vice versa.
You shall, unless otherwise agreed to by the Bank, maintain at least one operating account with the Bank for the day-to-day operation of your business for so long as any sum remains owing under the Facilities. You agree that the volume of your transactions including FX spot, forward and derivative transactions and Interest Rate swap and derivative transactions with the Bank would reasonably correspond with the utilization of the Facilities as well as the level and nature of your business activities.
To the extent that the same are not inconsistent with the express terms herein, the Bank's Standard Terms and Conditions Governing Banking Facilities and any amendments, supplements or replacements thereto from time to time shall form part of and be deemed to be incorporated in this offer.
If the above terms and conditions of the Facility are acceptable to you, please confirm your acceptance by signing the duplicate of this letter and returning it to us within 14 days from the date of this offer, failing which this offer shall lapse unless an extension is requested for and agreed to by Oversea-Chinese Banking Corporation Limited.
Yours faithfully,
Oversea-Chinese Banking Corporation Limited
………………………………….
To: Oversea-Chinese Banking Corporation Limited
We hereby accept the Facility on the terms and conditions contained in the foregoing facility letter, on the terms and conditions in the Bank’s standard form Hire Purchase Agreement to be entered between the Bank and us and the Standard Terms and Conditions Governing Banking Facilities.
We request the Bank to debit our Account No. ______for payment of all instalments, costs, charges and fees relating to the Facility.
......
For and on behalf of [Name of Hirer ]
Name of Authorised Signatory(ies):
Date:
OCBC Legal / June June 200 62007Sep 09