NOTE OF CONTRACT

IMPORTANT INFORMATION FOR BORROWER AND SURETY OR THEIR AGENTS

  1. Do NOT sign or accept this Note of Contract if:
    1. Any part of it is not properly filled in;
    2. The moneylender (or his agent) has not explained the terms of the Note of Contract to you in a language that you understand.
  2. For a loan granted to an individual, the moneylender cannot charge:
    1. An upfront administrative fee of more than 3.5% of the loan principal;
    2. Interest of more than 4% per month;
    3. Late interest of more than 3% per month; and
    4. Total borrowing cost of more than 80% of the loan principal.
  3. Except for a revolving credit loan, secured loan, or business loan, the repayment of the loan is to be made in equal instalments and at equal intervals of time. The interest to be charged on the loan is to be calculated on a reducing balance basis.
  4. The borrower is advised to repay the principal and interest due to the moneylender promptly on such date as agreed upon between the borrower and the moneylender to avoid having to incur late interest and late fees.
  5. In the event of a loan becoming overdue, late fees and late interest will be incurred in accordance with the terms specified herein. Once these charges are applied, any repayment made by the borrower towards the outstanding loan balance will be applied in the following hierarchical order: first, to settle any late fees; second, to clear any accrued late interest; third, to reduce the outstanding interest; and finally, to reduce the principal amount of the loan.
  6. After signing, you should receive a copy of the duly completed Note of Contract and the loan repayment schedule (if the loan is a term loan).
  7. You should receive a receipt for every repayment paid (whether in cash or otherwise) to the moneylender.
  8. So long as your loan is subsisting, you should also receive a statement of account showing the various charges imposed, a list of payments made and the outstanding amount of your loan on every half year by 21 July or 21 January.
  9. You are expressly reminded that should you borrow monies with no intention to repay, you will be reported to the police authorities, and may be found liable for offenses under the Penal Code 1871. In addition, any parties who assist in the removal or concealment of monies may likewise be found liable for offenses under the Penal Code 1871.
  10. I understand and agree that all receipts may be issued in electronic form or hardcopy by any means.