MEMORANDUM OF UNDERSTANDING
Between
New Finance Bank Malawi Limited
And
______
THIS MEMORANDUM OF UNDERSTANDING (hereinafter referred to as “AGREEMENT” is made on the ______day of ______2017
BETWEEN
(1) The bank a company incorporated under the Banking Act (1989) having its principle
Offices ______(Hereinafter called “The BANK”)
AND
(2) ______a company incorporated on
(3) ______. Having its offices in______with a
mailing address of ______(hereinafter called “EMPLOYER”)
WHEREAS
(A) The Bank’s mission in Malawi is “to be a financial institution that offers superior banking services and products that meet the needs and requirements of its customers. New Finance Bank is committed to up-hold its professional image and contribute meaningfully to the uplifting of the environment and society.”
The bank as an aspiration brand provides its clients the means to realize their full potential both at work and in their personal lives by providing them access to efficient and cost effective services.
(B) ______is involved in the provision of
______. It is one of the leading providers of
______in Malawi.
(C) ______wishes to provide value adding services to its employees by affording them preferential services through strategic alliances with various service providers in Malawi.
(D) The bank and ______therefore, agree to enter into
This agreement to mutually support ______employees in obtaining
loans from the bank
IT IS AGREED AS FOLLOWS
1. Definitions and interpretations
1.1 In this agreement unless otherwise specified or inconsistent with the context, the following definitions shall apply:
“Applicant” means an employee of ______whether Executive, Senior Manager, Supervisor or junior staff, etc.
“Loan” means any form of financing, that ______employees may obtain from New Finance Bank under this agreement including an arrangement fee.
“Limit” means approved credit line (aggregate loans) to be drawn by employees of ______under this agreement which is equal to
______
“Facility Rate” means applicable base lending rate, currently at ------per annum, plus margin of ------per annum giving an effective interest rate of ______
“Arrangement fee” means an amount payable to the bank for processing each loan, equivalent to three percent (3%)
“Penalty Interest Rate” means interest rate of 10% per annum above base lending rate charged by the bank because of delays in remitting monthly loan deductions.
“Default” means any breach of the obligations of any party under this agreement.
“Default Interest Rate” means interest rate of 10% per annum above base lending rate charged by the bank on the outstanding loan plus arrears following default.
2. The bank’s obligations
The bank agrees and confirms that it will:
2.1 Receive loan applications from ______applicants.
2.2 Conduct a thorough due diligence on each application.
2.3 Perform all standard internal review checks for a standard loan application on any loan application.
2.4 Manage the loan from disbursement to complete repayment.
2.5 Provide consolidated loan deductions schedule for all employees on a monthly basis.
2.6 Provide ______with all relevant information that is deemed necessary under this agreement.
3. ______obligations
______agrees and confirms that it will:
3.1 For purposes of review and renewal of Limit provide its audited annual financial statements as soon as they become available but in any event within 120 (one hundred and twenty) days after the end of each financial year.
3.2 Promptly inform the bank in writing of:
3.2.1. any change in the present shareholding or ultimate beneficial control of its company (where applicable);
3.2.2. any occurrence of which it becomes aware which will or may adversely affect its ability to perform or observe its obligations in terms of this agreement
3.2.3. any change in employment status of its employees benefitting from the limit.
3.3 Confirm with the Bank the undrawn amount of the limit before forwarding any loan application to the bank.
3.4 Timely remit monthly loan deductions to the bank and at the maximum within 5 days of payroll deductions.
3.5 Timely settle all amounts due, as a result of delayed payments which attract penalty interest rate, within 5 days of notice.
4. General
4.1 Confidentiality
All, ______and the bank undertake to keep strictly confidential any information obtained during the course of this agreement unless there is a professional or legal duty to disclose.
4.2 Risk and Liability
______is not liable to any damage or loss arising from any default by its employees under this agreement. ______shall not be held liable for any damage or loss arising from the Bank’s own negligence. However, ______should inform the Bank of any material changes affecting their employees.
4.2.1 In addition, ______shall be held responsible for loans granted by the Bank through fraudulent information by its employees if it is proven that the company acted negligently.
4.3 Duration
This agreement will be reviewed annually from the effective date of this agreement to ensure that it is fulfilling its purpose and make any mutually agreed revisions.
4.4 Pricing
All loans granted under this agreement shall attract a facility rate of base lending rate, currently at ------per annum plus margin of ------per annum and an arrangement fee of ------of the individual loan amount
4.5 Cancellation of Agreement
Both ______and the bank agree that either party to this MOU can cancel the agreement by giving 30 days notice.
Notwithstanding the above, after cancellation of this agreement, ______shall remain bound by timely remitting all loan deductions until all loans drawn under the limit contained in this MOU are fully repaid.
4.6 Enforceability
Both ______and the bank agree that this agreement is legally enforceable.
4.7 Waivers of Rights
4.71. No induigence or extension of time granted by the bank to the borrower shall be deemed to be a waiver of any of the bank’s rights.
4.7.2 Notwistanding the above, nothing herein contained shall prejudice New Finance Bank’s right to demand repayment of the loan at any time.
5. Authorization
The signing of this agreement is a formal undertaking. It therefore implies that the signatories will strive to reach, to the best of their ability, the objective stated in this agreement.
On behalf of the organization we represent, we wish to sign this agreement in order to mutually support ______employees in obtaining loans from the bank.
Signed for and on behalf of the New Finance bank Malawi Limited
Name: ______
Position: ______
Date: ______
WITNESS
Name: ______
Position: ______
Date: ______
Signed for and on behalf of ______
Name: ______
Position: ______
Date: ______
WITNESS
Name: ______
Position: ______
Date: ______