CESSION AND PLEDGE OF GOODS
This Cession and Pledge of Goods may be considered for use where a debt is owed or may in the future be owed by a person, and additional security is required. By signing this Cession and Pledge of Goods, the debtor agrees to transfer to the creditor the right to the goods being ceded or pledged should the debtor default. The goods may include, for example, shares, Kruger Rands, or an investment account.
Why do I need a Cession and Pledge of Goods?
The Cession and Pledge of Goods strives to afford you as the creditor additional security. In the event that the debtor defaults in payment, you may use this Cession and Pledge of Goods to claim the goods that the debtor has ceded / pledged in terms of this agreement.
What type of business should use a Cession and Pledge of Goods?
If your business has debtors that owe money, this Cession and Pledge of Goods may be considered to reduce your risk in the debtor defaulting.
What does the Cession and Pledge of Goods look like?
- The Cession can be printed onto two A4 pages.
What do you need to do to use the Cession and Pledge of Goods?
- Read the document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details, and get the debtor to sign.
Also known as:
Please note: this transaction may be subject to the National Credit Act 34 of 2005, in which event an expert’s advice should be sought.
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