Nedbank Overdraft facility

Terms and conditions

General terms and conditions applicable to credit products

G1.  Interpretation

G1.1   In this agreement clause headings are for convenience and are not to be used in its interpretation.

G1.2   In this agreement, unless the context otherwise indicates, the following expressions bear the meanings assigned to them below and similar expressions bear corresponding meanings:

G1.2.1   Agreement means the respective credit product terms and conditions that you enter into, which include the application, quotation and/or annexes to the agreement. The agreement includes the general terms and conditions applicable to credit products.

G1.2.2   Application means the respective application for a credit product.

G1.2.3   Business day means a day other than a Saturday or Sunday or a day that is proclaimed a public holiday in South Africa.

G1.2.4   Credit means a deferral of payment of money you owe us or a promise to defer such a payment, or a promise by us to advance or pay money to you or on your behalf.

G1.2.5   Credit product means the product governed by the NCA, which includes the personal loan, short-term loan, credit card facility, overdraft facility, vehicle finance loan or any other credit products that we offer.

G1.2.6   Interest rate means the yearly interest rate as specified in the respective quotation, being a variable or fixed interest rate. Variable interest rates may change.

G1.2.7   NCA means the National Credit Act, 34 of 2005.

G1.2.8   Prime rate means the prime overdraft rate of interest that we charge from time to time.

G1.2.9   Prime rate factor means the percentage above or below the prime rate as stipulated in the quotation.

G1.2.10  Principal debt means all amounts you owe us in terms of your respective agreement.

G1.2.11    Product terms and conditions mean the terms and conditions applicable to the specific product that you have chosen.

G1.2.12    Quotation(s) means the most recent written quotation(s) provided to you for the facility or loan as required by the NCA.

G1.2.13    Repo rate means the repurchase rate published by the South African Reserve Bank from time to time.

G1.2.14    Security means the security, if any, you provided to us or that was provided to us on your behalf in terms of the agreement.

G1.2.15    We/us/our/Nedbank means Nedbank Limited (registration number 1951/000009/06), its successors in title and assigns, whose contact details and NCR registration number are stipulated in the quotation.

G1.2.16    You/your means the client who applies for and enters into the agreement(s).

G1.3    Any number of days prescribed will be determined by excluding the first and including the last day, or, where the last day falls on a day that is not a business day, the next business day.

G2.  Condition precedent

The agreement is conditional on our having conducted a successful credit assessment in line with section 81 of the NCA.

G3.  Interest

G3.1    The outstanding balance of the credit agreement, together with all amounts owing to or claimable by us in terms of the respective agreement, will bear interest at the rates specified in the respective quotation.

G3.2    If the prime rate changes, we will notify you in writing of the change to the interest rate within 30 days of the change taking place, stipulating the date on which the change took effect.

G3.3    Interest will be reckoned from the date on which credit or any part of that is advanced to you or on your behalf, calculated daily on the basis of a year of 365 days, whether or not the year is a leap year, and debited monthly in arrears.

G3.4    Interest for any period between the date on which credit or part of that is advanced to you or on your behalf, and the date on which the first instalment is payable, will be payable monthly in arrears.

G3.5    If you default on your repayment obligations, we will charge further interest on overdue amounts at the same rate as the interest rate applicable to the respective credit agreement, which will include fees, costs or charges not paid on or before the due date.

G4.  Fees, costs and charges

G4.1    You are responsible for payment of all fees, costs and charges specified in the quotation. We may from time to time vary any fees, costs or charges, but will not exceed the prescribed amount in terms of the NCA. We will give you notice of at least five business days before we make the change.

G4.2   If you default on any obligation in terms of the respective agreement, we will charge default administration charges for the delivery of each default letter, and we may charge you the costs we incurred to collect on the debt.

G4.3   All amounts that we pay or incur due to your default, including any amount actually disbursed by us relating to payment of renewal premiums on any insurance policy, including all legal costs charged on an attorney and client scale, counsel's fees, tracing fees and other collection charges, will be payable by you. These charges are payable to us on demand, all such payments being authorised by you and secured by the security (where applicable).

G4.4   If you are required to pay or reimburse any costs, fees, expenses or disbursements under the respective agreement, you agree that this obligation includes the payment of value-added tax where applicable.

G5.  Prepayment, settlement and allocation of payments

You may pay any amount in advance or settle the respective agreement at any time. The amount required to settle the respective agreement is the outstanding capital, plus any unpaid fees and interest owing to or claimable by us up to the settlement date. If the agreement is a large agreement as defined in the NCA, and you have not given us three months’ notice of your intention to settle the respective agreement, we may charge an early-termination fee. You may pay any amount owed to us in advance at any time and we will allocate the payment as follows:

• to pay any unpaid interest; and then
• to pay any unpaid fees; and then
• to reduce the amount of the principal debt.

G6.  Process on default

G6.1   If you are in default, we will give you written notice and propose that you refer the agreement to a debt counsellor, an alternative dispute resolution agent, the consumer court or the ombud with jurisdiction, with the intention that we resolve any disputes or develop and agree on a plan to remedy the default.

G6.2   To the extent that the NCA is applicable to this agreement, you have the right to resolve a complaint through alternative dispute resolution, filing a complaint with the National Credit Regulator, making an application to the tribunal, or applying to a debt counsellor for assessment and debt review in terms of the NCA.

G6.3   You agree that registered mail will be used for the delivery of legal notices to you.

G6.4   If you applied for debt review under section 86 of the NCA and the review is not finalised within 60 business days after you applied for it, we may send a notice terminating the debt review in terms of section 86(10) of the NCA.

G6.5   We can approach the court for an order enforcing the agreement only if, at the time, you have been in default for at least 20 business days and at least 10  business days have elapsed since the default letter or notice referred to above has been delivered (which 10-day period may run concurrently with the 20-day  default period) and you have not responded to the default letter or have rejected our proposal.

G6.6   The nature and amount of your indebtedness, the applicable interest rate as well as the terms and conditions applicable to your relationship with us will be determined and proved by a written certificate from any of our managers or accountants, whose position we need not prove and which certificate will, on the face of it, be binding on you as a liquid document. Unless you can satisfy the court that the amount in the certificate is incorrect, it is agreed that we may take any judgment or order that we are entitled to in law based on the contents of the certificate.

G7.  Implications of default

G7.1   If you default on your obligations under the agreement, you will pay default administration charges and collection costs to us.

G7.2   We have the right to claim the full amount outstanding in terms of the agreement, together with interest and all other amounts owing to us, which amount may, at our discretion, become immediately due and payable.

G7.3   Any amount in default or arrears will bear interest at the rate referred to in the respective quotation, calculated and capitalised monthly.

G7.4   Subject to clause G.8, if you are in default, we may institute legal action against you, which may result in a court judgment against you, which may attach your salary or property and sell your property to recover your indebtedness to us, which will further result in a bad credit record.

G7.5   Whenever we take any legal steps against you, we will have the right to use microfilm and/or copies of any other relevant records.

G8.  Application for debt review

G8.1   You have the right to apply to a debt counsellor to be declared overindebted. You may not apply to a debt counsellor to be declared overindebted if, at that time, we have started legal action.

G8.2   The debt counsellor will determine whether you are overindebted and, if you sought a declaration of reckless credit, the debt counsellor will make a finding on whether any of the credit agreements are indeed reckless.

G8.3    The debt counsellor may reject your application or may recommend that you and the respective credit providers consider and agree on a debt rearrangement plan. If the debt counsellor finds that you are indeed overindebted, they may issue a proposal recommending that the magistrate's court make an appropriate order. If you and each credit provider accept the recommendation suggested by the debt counsellor, the order must be recorded in the form of an order and, if all parties consent, it may be filed as a consent order by the debt counsellor. If the debt counsellor rejects the proposal, you may, with leave of the magistrate's court, apply directly to the magistrate's court for an appropriate order.

G9.  Address for notices

G9.1   You agree that the residential address you provided in the quotation or the most recent address provided to us in terms of clause G9.2 is your chosen domicilium citandi et executandi, which is the address to be used for purposes of legal proceedings and sending or delivering any legal notices to you.

G9.2   Either party may change its address by delivering a written notice of the new address by registered mail or email.

G9.3   A notice, order or other document that, in terms of the NCA, must be served on either party to this agreement will have been properly served when it has been delivered to that party or sent by registered mail to that party’s last known address. If you have not advised us of a change of address, we will continue to use the last address provided even though the information may be incorrect.

G9.4   You may send any legal notices to:                                       

The General Manager

Nedbank Group Legal

Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196

G9.5   Unless the contrary is proven, any legal notice sent by email to the chosen email address will be considered as having been received on the date of transmission.

G9.6    Any document received by a party will be adequate written notice or communication to that party, even though it may not have been sent to or delivered at the chosen address.

G10.  General

G10.1    The agreement contains everything we and you have agreed on and any change to it must be signed by both parties, unless stipulated otherwise.

G10.2    If either party decides not to use a right in this agreement, it does not mean that the right is lost in terms of the agreement.

G10.3    If you or we wish to waive a right in terms of this agreement, the party must give the waiver in writing.

G10.4    Every undertaking in this agreement is separate from the others. If any clause is found to be unlawful or cannot be used for any reason, the other clauses will not be affected by its invalidity.

G10.5    If there is a conflict between the provisions of this agreement and any provision of the security, the provisions of the agreement will apply.

G10.6    We have the right, without your consent, to cede, assign and/or transfer any of our rights or obligations in terms of this agreement and/or the security to any third party. The right includes the right to delegate any of our obligations in terms of the agreement or the security. If any such cession, assignment or transfer constitutes a splitting of claims that requires your consent, you consent to that.

G10.7    You are not entitled to cede, assign or transfer any right, title or interest in and to this agreement.

G10.8    You must give us such information and/or documents as we may require, from time to time, in respect of yourself, your spouse, surety, guarantor or any other person who has provided security for your indebtedness.

G10.9    The English version will prevail if there is a conflict with any other version of the agreement.

G10.10   In terms of section 45 of the Magistrates' Court Act, 32 of 1944, and at our option, any claim arising under this may be recovered in any magistrate's court having jurisdiction, and you consent to the jurisdiction of the magistrate's court. We have the right to approach a higher court if we wish to do so.

Terms and conditions applicable to the overdraft facility

F1.  Interpretation

In this agreement clause headings are for convenience and are not to be used in its interpretation.

In this agreement, unless the context otherwise indicates, the following expressions bear the meanings assigned to them below and similar expressions bear corresponding  

meanings:

F1.1    Account means your transactional account with Nedbank to which the facility is linked.

F1.2    Facility means the credit offered to you in the form of an overdraft facility.

F2.  Recital

The overdraft facility, being a demand facility, is granted on a fluctuating basis without a specific expiry date. As such, the facility is repayable at our discretion in accordance with our credit risk assessment practices. The facility is subject to review from time to time, and continuation will depend on our standard credit risk assessment criteria.

F3.  Terms of overdraft facility

F3.1    Subject to the terms and conditions in the agreement and the provision of security (if applicable), we agree to provide the facility to you.

F3.2    Subject to the provisions of the NCA, we may increase your credit limit on your written request.

F3.3    If you have selected the option, at the time of the facility application or after that, of having the credit limit automatically increased, we may unilaterally increase your credit limit from time to time.

F3.4    You may not exceed the credit limit, unless you first get our written approval. If we accept any sales voucher, cash voucher or other evidence of cash withdrawal or purchase resulting in your credit limit being exceeded, this will not mean that we have permanently increased the credit limit.

F4.  Provision of credit

F4.1    It is a condition of the facility that you open an account.

F4.2    You agree to conduct all banking through this account and, where applicable, your income must be deposited into the account.

F4.3     We reserve the right to request that the account be funded before you gain access to the facility and to request a minimum monthly deposit to cover the service fees and interest charges.

F4.4     Where applicable, the proceeds of all sales, including cash sales and receipts from debtors, are to be banked timeously into this account.

F4.5     You agree to conduct the account in a manner acceptable to us and failure to do so will be deemed a breach of this agreement.

F4.6     You further agree to supply us with details of signing arrangements on the account in the format as requested by us and to advise us of any changes to the signing arrangements.

F4.7      You agree that we are authorised to do the following:

F4.7.1    Pay all cheques, promissory notes, bills of exchange and other negotiable instruments payable at the bank, purporting to be drawn, made or accepted by you or on your behalf.

F4.7.2    Debit the above instruments to your account, whether your account is in credit or otherwise.

F4.7.3    Receive and deposit any cheque to the account, but the proceeds will be considered cleared only once the cheque has been honoured. All cheque deposits are subject to a clearance period, which normally is seven business days, but this may vary.

F4.7.4    Accept your instruction by electronic means and you agree that the use and handling of the account will be subject to such arrangements as we may have with regard to the implementation of the magnetic-ink character recognition system as coupled with the Automated Clearing Bureau.

F5.  Interest

Your facility is subject to a variable interest rate determined with reference to prime rate, plus or minus a prime rate factor as specified in the quotation. The interest rate will automatically increase or decrease in line with changes to prime rate.

F6.  Security

F6.1    The security specified in the quotation will secure your indebtedness in terms of the agreement.

F6.2    The security documents and agreements will be in the form that and contain such terms and conditions as we require.

F6.3    The facility will become available on vesting of all security required in terms of this agreement. If we advance the facility or a portion of it before we come into possession of the security as required, any such advances must not be regarded as a waiver of our rights in obtaining the required security not yet provided.

F7.  Payments and statements

F7.1    The deferred amount, together with interest, fees and charges, may be debited to the account.

F7.2    All payments must be made in South African rand without setoff or deduction of any kind and free of exchange.

F7.3    If you do not make any payment on the due date or if we pay any amount on your behalf, we will include this in the outstanding balance

F7.4    The amount required to settle the facility is the outstanding capital, plus any unpaid fees and interest due up to the settlement date.

F7.5     We will give you a monthly statement, unless agreed otherwise, in line with the delivery mechanisms applicable to the specific transactional account.

F7.6     You may dispute any specific credit or debit entered on your account statement by delivering a written notice to us. The bank will provide a written notice explaining the entry or confirming that the entry on the statement was an error and setting out the revised entry.

F7.7     If you use cheques, you will not receive original cheques by post, but electronic copies are available on request.

F8.  Implications of default

F8.1   If you default on your obligations under the facility agreement or if you breach a condition of any other agreement with us that is a breach of the facility agreement, we have the right to claim the full amount outstanding in terms of this facility, together with interest and all other amounts owing to us. Any amount in default or arrears will bear interest at the rate referred to in the quotation, calculated and capitalised monthly.

F8.2   The following events will be considered breach of the facility agreement, each of which will be severable and distinct from the others:

F8.2.1    Failing to conduct the account in an acceptable manner.

F8.2.2    Exceeding the applicable credit limit.

F8.2.3    Any material adverse change in your financial position that will, in our opinion, prevent or aggravate your ability to meet your obligations in terms of the agreement.

F8.2.4    If one of the events listed above happens, we:

F8.2.4.1     may claim immediate payment of all amounts owing under the agreement;

F8.2.4.2     cancel the agreement with immediate effect;

F8.2.4.3     refuse to advance any further amounts to you;

F8.2.4.4     suspend the facility;

F8.2.4.5     restrict access to the facility;

F8.2.4.6     reduce the credit limit to such limit acceptable to us;

F8.2.4.7      require additional security; or

F8.2.4.8     do a combination of the above.

F8.3    No indulgence or extension of time that we grant will be deemed a waiver of our rights.

F9.  Credit life insurance

F9.1   Insurance is not a credit requirement, but optional. If you selected the policy that we can arrange on your behalf, you acknowledge the following:

F9.1.1   You were informed of your right to waive the proposed policy and substitute it with a policy of your own choice and have not waived the policy proposed by us.

F9.1.2   You have chosen to have us act as your agent in arranging such insurance and agree to sign all such documents reasonably required by us for the purpose of arranging the insurance.

F9.1.3   On the occurrence of one of the insurable events under the policy, we will receive the cover payable in terms of the policy.

F9.1.4   You irrevocably authorise Nedgroup Life to obtain from any person, doctor or institution (whom you hereby authorise and request to provide) any information that Nedgroup Life deems necessary to facilitate the consideration of any claim for any benefits payable in terms of the policy.

F9.1.5   The premium rates under the policy are not guaranteed and may be altered on the advice of an actuary of Nedgroup Life. In such an event you will be given one month's notice of any changes of rates.

F9.1.6   You will be the credit life assured and we will be the beneficiary under the policy.

F9.1.7   You authorise us to pay the insurance premiums on your behalf and that we can recover these premiums as part of the monthly instalments.

F9.1.8   You will, on request, do all things and sign all such documents as may reasonably be required by us for the purpose of arranging the insurance.

F9.2    Insurance will be effective from the date on which the facility, or part thereof, is advanced to you or on your behalf.

F10.  Suspension or closure of credit facility

F10.1    We may suspend the facility at any time that you are in default under the agreement or close the facility by giving written notice of termination at least 10 business days before the facility is to be closed.

F10.2    Despite the suspension or closure of the facility, any liability that you may have in respect of the facility and/or any credit provided will not be affected by the above action, and the agreement will remain in effect until you have paid all amounts due in terms of it.

Important confirmation

Accepting the terms and conditions of an overdraft facility from Nedbank, is confirmation that you acknowledge the following:

1     A copy of the quotation, preagreement statement, respective terms and conditions and credit life insurance policy (where applicable) were made available to you.

2     Before accepting the credit life policy proposed by us, you have read and understood its policy exclusions.

3     You understand the risks, costs and obligations associated with the agreements you are entering into.

4     The quotation provided is valid for five days. Once you have signed the quotation, preagreement statement and terms and conditions, you and we will enter into the

       agreement subject to a successful credit assessment and the provision of any security (where required).

You also confirm that the above is a true and an accurate reflection of all the disclosures, documents and information given to you before entering into the agreement, and your signature serves as proof of such confirmation. You warrant that your personal circumstances have not materially changed since the application for the agreement and that the details about your income and expenditure are true and correct.

Declaration by client married in community of property

You warrant that you have obtained your spouse's written consent, attested by two witnesses, and that you have the requisite authority and legal capacity to apply for the above agreement and to enter into any agreement pursuant to our approval of your application.

OR

Declaration by client not married in community of property

You warrant that you are not married in community of property and do not require the consent of a spouse to apply for the above credit products and to enter into any agreement after our approval of the application.