MUTUAL FINANCE TRANSACTION AGREEMENT
This Mutual Finance Transaction Agreement is made at [LOCATION] on this day of [DAY, MONTH YEAR]
BETWEEN [NAME OF FINANCER] herein after referred to as “Financer” and [INSERT NAME OF
BORROWER] herein after referred to as “Borrower” and Borrower’s Spouse [insert wife’s name] herein
after referred to as “Co-Borrower”.
INTRODUCTION:
WHEREAS “ the Borrower” is a regular customer for the “ Financer’ and is engaged in the usual business
activities of buying goods herein after referred to as “Textile(s)” on a credit basis from the Financer.
AND WHEREAS the parties enter into this mutual agreement in order to preserve a formal and positive
business relation and to bring clarification and avoid any unnecessary confusion about any and all
matters related to the parties’ mutual business activities
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1.
The Financer shall grant the Borrower the right to purchase Textile on a credit basis and
without exceeding the amount of [AMOUNT & CURRENY].
2.
The Borrower shall provide an instrument of guarantee to the Financer, which shall be fully
pledged under the Borrower’s property assigned as the apartment property of the Borrower
[APARTMENT DETAILS INCLUDING LOCATION, TITLE DEED NUMBER AND OWNER NAME].
Furthermore, the Borrower shall be obligated to provide the original title deed and any other
pertinent original documents related to the ownership of the apartment to the Financer so as to
protect and insure the Financer in the event that the Borrower fails to pay any outstanding
amount owed to the Financer; and, the Financer shall have a right to use the rights and value of
the apartment as a guarantee against any outstanding debt to the Financer by the Borrower.
3.
The Borrower shall be committed to pay the Textile within 60 days from the date of the bill of
lending. Failure to make timely payment as prescribed shall result in incurring interest rate
[INSERT THE INTEREST RATE] charged by the Financer for any delays.
4.
The Borrower shall be obligated and required to utilize the credit facility to the purchases from
the Financer and must not buy same from any other competitors. Furthermore, the Borrower
must not use the credit facility for any other purposes accept the purchase from the Financer.
The signing Parties agree to all the terms and conditions as set forth in the above detailed Agreement.
This Agreement has been executed absent duress and with the Parties’ full consent and
acknowledgement at [LOCATION] on this day of [date] as follows:
Financer:
Borrower: [NAME]
Name:
Name:
Signature:
Signature:
Co-Borrower:
Name: [NAME]
Signature: