28th October, 2021
Alaka Sunday Micheal
No1 Ile Chairman Olokada Odo-Oba
Ibadan
Dear Sir,
RE: OFFER LETTER – N500,000.00 (FIVE HUNDRED THOUSAND NAIRA ONLY) BUSINESS FINANCE
FACILITY
Further to your request for the subject facility, we are pleased to inform you that the facility
has been approved subject to the following terms and conditions:
FACILITY TYPE:
Business Finance (I GO Trade)
LENDER:
Sterling Bank Plc. (“Sterling/ Bank”)
BORROWER:
Alaka Sunday Michael {“Borrower”}
BORROWER’S BVN:
22211091056
FACILITY AMOUNT:
N500,000.00 (Five Hundred Thousand Naira only}
PURPOSE:
To provide working capital for the expansion of Borrower’s
business.
TENOR:
24 Weeks (6 months).
INTEREST RATE:
3% flat monthly payable in arrears. Sterling Bank’s prime lending
rate is determined by the prevailing market conditions and is
therefore subject to changes.
ANNUAL PERCENTAGE RATE: 36% flat p.a
RATE REVIEW:
These rates are subject to review/change in line with money
market conditions at any time or at the Bank’s discretion. The Bank
will send a notification via email or SMS or written letter in advance
of the application of the new rate. However, the Bank has the
right to implement the changes at the end of the notice period if
there is no response to the notice.
INSURANCE FEE:
2% payable upfront
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REPAYMENT AMOUNT:
Equal weekly repayment of N18, 359.00 {Eighteen thousand three
hundred and fifty-nine naira only} this is subject to change in the
event of any change in the Bank’s Margin Lending Rate.
REPAYMENT SOURCE: Without prejudice to other sources of repayment, the facility will
be repaid from The Borrower’s business cash flow
SECURITY:
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Lien to be placed on 10% of facility amount in the Borrower’s savings
account with the Bank throughout the tenor of the facility.
Corporate Guarantee of the Group/Association
Domiciliation of business proceeds with Sterling.
Credit Life Insurance
Insurance over the Borrower’s stock of goods noting the interest of the
Bank as first loss payee.
CONDITIONS PRECEDENT TO DRAWDOWN:
Submission of request Letter for the facility
Submission of duly executed Offer letter accepting the facility
Submission of Corporate Guarantee of the Group/Association
Submission of duly executed Agreement to domicile all business proceeds
with Sterling.
Payment of upfront fees
TRANSACTION DYNAMICS:
Borrower duly completes the Loan Application Form and submits form with
supporting documents to the Bank for evaluation.
Borrower’s application is Approved/Declined.
Upon approval, the Borrower submits executed offer letter and any other
required document.
Loan is booked for approved tenor, and funds credited to the Borrowers
account.
OTHER CONDITIONS:
This Offer letter shall not be binding unless it is accepted unconditionally
and returned to the Bank within 30days from the date hereof. It shall remain
valid for a period of 90 days from the date of acceptance, after which it
is deemed to have lapsed if it is not utilized
Without prejudice to the foregoing, the Bank reserves the right to vary, alter
or amend any of the terms and conditions of the facility as and when the
need arises.
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All expenses including legal, VAT, insurance and other expenses incidental
to the facility shall be borne by the Borrower and the Bank shall be entitled
to debit your account without recourse for such expenses.
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Utilization of the facility shall be at the sole discretion of Sterling and is
subject to satisfactory documentation and regulation of Central Bank of
Nigeria (CBN) as may be laid down from time to time.
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The Borrower acknowledges that the Bank is a financial institution
regulated by CBN.
First Rental (repayment) shall be payable on the 28th of October 2021
The repayment instalment due is serviced on a (Weekly) from the
Borrower’s business proceeds or other sources of cash flow (where
applicable) throughout the tenor of the facility.
The Borrower hereby agrees to indemnify the Bank against any loss
howsoever occurring that the Bank may incur, as a result of any
misrepresentation, irregularity or incompleteness in the information
contained in any document submitted to the Bank.
The facility shall become due and payable if in the opinion of Sterling bank,
there shall be any material change whatsoever in the business, assets,
financial conditions of the Borrower.
Funds received into the account when the principal and/or interest are
past due, will be applied first to the overdue interest before the
outstanding principal amount.
The facility shall terminate and all sums due to the Bank hereunder shall
become immediately due and payable if the Borrower commits any
breach or defaults under the terms of this facility or any other credit
facilities granted to the Borrower by Sterling or any other bank.
The Bank reserves the right to cancel its commitment unconditionally and
without notice to the Borrower if the facility remained undrawn or if, in the
Bank’s opinion, there is any deterioration in the Borrower’s credit
worthiness.
The Bank shall be entitled to recover past due obligations where the
Borrower defaults in repayments through the Global Standing Instruction
stated herein.
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The Bank shall also be entitled to recover any outstanding from the
Borrower’s individual saving’s account or from the peer guarantor.
Events of Default
The occurrence of any of the following events shall cause all outstanding
under the facility to be immediately repayable:
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If the Borrower fails to settle, when due, any outstanding amount owed to
the Bank under the facility, or
If the Borrower defaults in the performance or observance of any other
term, condition or covenant herein and such breach or default continues
unremedied after ten (10) days’ notices shall have been given to it or
If a distress or execution is levied upon or issued against the Borrower’s
property and is not discharged within five (5) days or an encumbrancer
takes possession of all or any part of the Borrower’s undertaking and asset
or
If the Borrower ceases or threatens to cease to carry on business or if in the
opinion of Sterling Bank there shall be any material adverse change
whatsoever in the business, assets, financial condition and operation of the
Borrower
If the Borrower is unable to pay any of his debts to any other party
If the Borrower does not comply with Environmental and Social (E&S) Laws
(where applicable).
Covenants
The Borrower undertakes that during the validity of the facility while there
are any outstanding thereon, the Borrower will comply with the terms of
this offer letter and ensure that the Borrower’s account is duly funded to
cover repayments of the facility as and when due. do the following:
The Borrower shall not, without the Bank’s prior written consent, make any
offer of employment or engage either directly or indirectly any staff of the
Bank that is involved in providing advisory or relationship management
services in respect of the facility, during the tenor of the facility or within
twelve (12) months of the liquidation/repayment of the facility.
The Borrower shall at any time and from time to time, upon the written
request of the Bank, and at the sole expense of the Borrower, promptly
and duly execute and deliver such further instruments and documents and
take such further actions as the Bank reasonably may request for the
purposes of obtaining or preserving the full benefits of this Agreement and
of the rights and powers herein granted.
Representations and Warranties
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The Borrower represents and warrants to the Bank as follows:
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The Borrower has the power and authority to take up this facility upon the
terms and conditions outlined and to observe and perform its obligations
hereunder
The Borrower is a bona fide member of the Group
That all information relating to the Borrower or otherwise relevant to
matters contemplated herein as supplied by the Borrower to the Bank is
true and correct in all material respects
Default Interest
If the Borrower fails to pay any amount payable by it under this facility on
its due date, interest shall accrue on the overdue amount from the due
date up to the date of actual payment at a rate which, subject to
paragraph (b) below, is 1.00% per month in addition to the rate which
would have been payable if the overdue amount had, during the period
of non-payment, constituted a Loan in the currency of the overdue
amount for successive Interest Periods
If any overdue amount consists of all or part of a Loan which became due
on a day which was not the last day of an Interest Period relating to that
Loan:
the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to that Loan;
and
the rate of interest applying to the overdue amount during that first Interest
Period shall be 1.00% per month in addition to the rate which would have
applied if the overdue amount had not become due
Default interest (if unpaid) arising on an overdue amount shall be
compounded with the overdue amount at the end of each Interest Period
applicable to that overdue amount and will remain immediately due and
payable
Facility Review
It is the Bank’s policy to review facilities from time to time, in the light of
changing market conditions of financial condition of the Borrower. The
Bank reserves the right at its sole discretion to change, vary, or cancel at
any time, with adequate notice to the Company, the nature and amount
of the facility as well as the underlying terms, conditions and security
arrangement. Therefore, notwithstanding anything in this Offer to the
contrary, this facility is regarded as payable at any time at the option of
the Bank.
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Voluntary Prepayment
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The Borrower may repay the whole or any part of the loan upon giving the
Lender 7 (seven) Business day’s prior notice. Any amount prepaid may not
be redrawn (and shall be applied against scheduled repayments in
(inverse order of maturity). Any amount prepaid shall include interest and
any pro rata amount of fees that become due and payable on the
immediately succeeding due date for such fees.
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Consent to Disclose Credit Information to Credit Bureaus
The Borrower hereby consents that the Bank may collect, use and disclose
the Borrower’s transaction/ information to the appointed Credit Bureau
and that the Credit bureau may use the information for any approved
business purposes as may from time to time be prescribed by the Central
Bank of Nigeria and/ or any relevant statute.
The Borrower also authorizes the Bank to conduct previous/current credit
information checks on the Borrower from other financial institutions through
any relevant means/ agency.
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Right of Set-Off
The Borrower covenants that in case of default, in addition to any general
lien or similar right to which Sterling Bank as a bank may be entitled by law,
the Bank may at any time and without notice to the Borrower combine or
consolidate all or any of the Borrower’s accounts with and liabilities to the
Bank, set off or transfer any sum(s) standing to the credit of any one or
more of such accounts in or towards the satisfaction of any of Borrower’s
liabilities to the Bank or any other account or in any other respect whether
such liabilities be actual or contingent, primary or collateral and several or
joint.
The Borrower covenants to repay the loan as and when due. In the event
that the Borrower fails to repay the loan as agreed, and the loan becomes
delinquent, the Bank shall have the right to report the delinquent loan to
the Central Bank of Nigeria (CBN) through the Credit Risk Management
System (CRMS) or by any other means, and request the CBN to exercise its
regulatory power to direct all banks and other financial institutions under
its regulatory purview to set off the Borrower’s indebtedness from any
money standing to the Borrower’s credit in any other bank account and
from any other financial assets they may be holding for its benefit.
The Borrower covenants and warrants that the Bank shall have power to
set-off the Borrower’s indebtedness under this loan agreement from all
such monies and funds standing to the Borrower’s credit/benefit in all such
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accounts or from any other financial assets belonging to it and in the
custody of any such bank.
The Borrower hereby waives any right of confidentiality whether arising
under common law or statute or in any other manner whatsoever and
irrevocably agree that the Borrower shall not argue to the contrary before
any court of law, tribunal, administrative authority or any other body acting
in any judicial or quasi-judicial capacity.
Lien
The Borrower hereby grants the Bank an irrevocable and unconditional
right of lien over the Borrower’s assets. The lien shall remain in force for as
long as any part of the facility is outstanding.
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Assignment
The Borrower hereby acknowledges that the Bank may sell, transfer, assign,
novate or otherwise dispose of all or part of its rights or obligations
(including by granting of participations) under this Agreement to another
bank or financial institution or to a trust, fund or any other entity which is
engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets. The Borrower hereby
agrees to execute all documents and take all such steps as may
reasonably be required by the Bank to give effect to such an assignment
or transfer.
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Material Adverse Event
This Facility shall be withdrawn or terminated if a situation, change or
default occurs or threatens to occur which in the opinion of the Bank
would adversely affect the ability of the Borrower to perform the Borrower’s
obligations as outlined in this Letter. In the event of any such termination,
any fees paid by the Borrower to the Bank shall not be refunded.
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Waiver
No failure or delay by the Bank in exercising any remedy, power or right
hereunder shall operate as a waiver or impairment thereof nor shall it
affect or impair any such remedies, powers or rights in respect of any
subsequent default.
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Notices and Complaints
• All notices, consents, requests, demands, and other communications
required hereunder or given pursuant to this Facility shall be in writing
addressed to that Party at its respective address and delivered personally
or sent by post, courier or email.
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Any complaint arising from this facility shall be made in writing and
delivered to the Bank personally or sent by post, courier or email at the
address set out below or at such other current address as is specified by
Sterling to the Borrower by notice;
To: STERLING BANK PLC
Sterling Towers, 20 Marina, Lagos
Attention: Group Head Customer Experience
Email: customercare@sterling.ng
Phone No: 070078375464 · 07008220000
Where necessary, the Borrower may escalate to CBN using the following To:
Consumer Protection Department
Central Bank of Nigeria
P.M.B 0187
CBD, Abuja
Email: cpd@cbn.gov.ng
Please indicate your acceptance of these terms in the space provided
below.
Yours faithfully,
For: Sterling Bank Plc
Modupe Ola-Elegbede
Cassandra Obioha
Team Lead {BM}
Zonal Head
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MEMORANDUM OF ACCEPTANCE:
I, Alaka Sunday Michael hereby accept the terms and conditions contained
in your Offer Letter date 20th of October 2021
Signature: _______________________________
Date: ___________________________________
Witness
Name: __________________________________
Signature: _______________________________
Address: _________________________________
Date: _________________
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