Letter of Direction – Payment of Acquisition Price

About this template:

This particular legal letter is used to assist in articulating the terms of a letter of direction payment of acquisition price. See other legal documents that you may be interested in at https://www.templateguru.co.za/templates/legal/

Excerpt:

LETTER OF DIRECTION PAYMENT OF ACQUISITION PRICE WHEREAS [LENDER] made a financing proposal to [BORROWER] dated [DATE] which the Borrower accepted on [DATE] (the Proposal);WHEREAS the Lender and the Borrower have entered into a certain Contract of Loan and Hypothec dated concurrently herewith providing inter alia for the loan by the Lender to the Borrower of the sum of [AMOUNT] (the Loan Proceeds) for the purpose of assisting the Borrower in the acquisition of the equipment listed in [SPECIFY] (the Equipment) from [SPECIFY COMPANY] upon the terms and conditions set out therein (the Contract); WHEREAS [SPECIFY NAME] (the Surety) has executed a certain Guarantee Assignment and Postponement of Claim with respect to the obligations of the Borrower under the Contract in favour of the Lender which the Lender has accepted (the Guarantee); WHEREAS certain of the closing and post-closing items set out in the closing agenda annexed hereto (theAgenda) and certain of the conditions set out in the Proposal have not yet been met;

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