TERMS AND CONDITIONS | APRIL 2017
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6.9 It is the Surety`s responsibility to inform the Creditor when the Debtor attains the age of 18 (eighteen) and becomes
financially independent. The Surety must provide the Creditor with a copy of a certified Identity Document of the
Debtor and proof of income/employment. Suretyship will remain in place where the Creditor does not receive proof
of the Debtor`s Identity document and proof of income/employment.
6.10 Should the Debtor commit any act which would constitute an act of insolvency as determined in terms of Section 8 of the
Insolvency Act, 1936, then, subject to the limitation imposed on the Creditor in terms of clause 4:
(1) the Creditor will be entitled to prove a claim on the sequestration as aforesaid to the full extent of such claim and
neither the proof of such claim nor the expected receipt of any dividend or payment in respect thereof will in any way
affect the Creditor’s right to recover the full amount of the Creditor’s claim against the Surety; and
(2) any dividend or other payment actually received by the Creditor from the sequestration as aforesaid may be applied
by the Creditor on account of indebtedness of the Debtor to the Creditor without the Surety being released from
liability to the Creditor for the balance of such indebtedness.
6.11 All costs of and incidental to the proof of the Creditor’s claim on sequestration and all costs and expenses in the maintenance,
conservation or realising of any security which the Creditor may hold and all sums, including any contribution payable by the
Creditor, in consequence of the proof of the Creditor’s claim, will be recoverable from the Surety by the Creditor.
6.12 Sequestration of the Debtor will not affect or determine the liability of the Surety under this Suretyship. All dividends,
compositions and monies received by the Creditor from the Debtor or from any other company, persons or estate capable of
being applied by the Creditor in reduction of the indebtedness of the Debtor will be regarded for all purposes as payments in
gross and the Creditor will be entitled to prove in sequestration of the Debtor in respect of the whole of the indebtedness of
the Debtor to the Creditor and without any right on the part of the Surety to be subrogated to the Creditor in respect of any
such proof with the intent that this Suretyship will apply to and secure the whole of any ultimate balance which will remain due
to the Creditor.
6.13 The Creditor is hereby authorised to apply any monies received by the Creditor from the Debtor or from the Surety against
any indebtedness to the Creditor by the Debtor in the Creditor’s discretion.
6.14 The Creditor will be entitled to cede, assign or delegate all, or any part of, its rights and/or obligations, as the case may be,
under this Suretyship or under any security granted by the Surety to the Creditor in terms hereof without the prior consent of
the Surety; provided that the Surety has received written notice of such cession, assignment and/or delegation. To the extent
that any such cession, assignment or delegation may give rise to a splitting of claims against the Surety, the Surety consents
to such splitting of claims.
6.15 This Suretyship is in addition to and without prejudice to any other suretyship or security now or hereafter held or released by
the Creditor regarding the Debtor and will remain in force as a continuing covering security in respect of the payment of all
sums by, and the proper performance of all obligations of, the Debtor to the Creditor despite any intermediate settlement of
account or any fluctuations in or temporary extinction or novation of the indebtedness of the Debtor to the Creditor.
6.16 The Surety’s obligations and liability hereunder will continue and remain of full force and effect as a continuing covering security
until such time as the Debtor is entirely and finally released and discharged from all its obligations, contingent or otherwise, to
the Creditor and neither the Surety nor its executors, administrators or assigns will be entitled to withdraw herefrom until the
Debtor has been finally released and discharged. It is the Surety’s intention that this Suretyship, including but not limited to
the provisions of this clause6.16, will be binding on the Surety’s executors, administrators, trustees and other legal
representatives.
6.17 A certificate issued under the signature of any of the Creditor’s directors and/or managers for the time being whose
authority it will not be necessary to prove, will be sufficient and satisfactory evidence and will constitute prima facie
proof of the amount of the indebtedness of the Debtor and of the Surety hereunder to the Creditor at any time.
6.18 The Surety indemnifies and holds the Creditor harmless against any damage, cost, loss or expense of whatsoever
nature which the Creditor may sustain arising out of or in connection with the enforcement, breach, cancellation or
invalidity for any reason of any Suretyship, contract arrangement or understanding between the Creditor and the
Debtor. This Suretyship will be enforceable against the Surety in accordance with its terms, whether as an indemnity
or otherwise, notwithstanding that the Debt may in any way be invalid or unenforceable against the Debtor.
