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The Promissory Note Seller Financing agreement is commonly used in South African business transactions where traditional bank financing is not preferred or available. This document type is particularly useful in business sales, property transactions, or equipment purchases where the seller agrees to finance the purchase price over time. The promissory note must comply with South African legislation, particularly the Bills of Exchange Act 34 of 1964 and the National Credit Act 34 of 2005. It details the principal amount, interest rate, payment schedule, security arrangements, and remedies upon default. The document provides security for the seller while offering the buyer flexible payment terms, making it a valuable tool in facilitating business transactions where immediate full payment is not feasible.

1. Parties: Identification of the Maker (debtor) and Payee (creditor) with full legal names, registration/ID numbers, and addresses

2. Background: Context of the promissory note, including reference to the underlying transaction or agreement

3. Definitions: Key terms used in the document including Payment Date, Principal Amount, Interest Rate

4. Promise to Pay: Unconditional promise to pay a specific sum of money, including the principal amount and currency

5. Interest Rate: Specification of the interest rate, calculation method, and compliance with usury laws

6. Payment Terms: Payment schedule, method of payment, and place of payment

7. Security: Details of any security or collateral provided to secure the note

8. Events of Default: Circumstances constituting default and consequences thereof

9. Enforcement: Rights and remedies of the Payee upon default

10. Governing Law: Specification of South African law as governing law and jurisdiction