General Terms & Conditions


1. Definitions.

a). “The UIP Credit Limited” means UIP Credit Limited and its successors and assigns.

b). “Borrower” means the applicant(s) specified in the Application and their personal representatives and assigns. Where there is more than one Borrower, their obligations are joint and several.

c). “Repayment Date” means the day corresponding to the date of first disbursement of the Loan or any part of the Loan in each calendar month following the date of such disbursement provided that if there is no such corresponding day for the month in question, the Repayment Date for that month shall be the last day of the month and “Repayment Dates” shall have a corresponding meaning.

d). ‘Agreement” means the Borrower’s Application, duly approved by UIP Credit Limited and theseconditions as may be amended, supplemented and restated or otherwise notified from time to time.

e). “Security” means the offer letter required by the UIP Credit Limited offered as a condition for disbursement of the credit facility.

f). “Determine” means with respect to interest and charges to the loan such rate of interest as UIP CreditLimited may in its sole discretion decide and/or notify from time to time.

g). “Approved” means the acceptance by UIP Credit Limited of the loan applied for or such lesser sum as itmay in its sole discretion agree to advance to the Borrower. “Approval’ shall have acorresponding meaning.


2. Interest.

a). The Borrower will pay interest of 5% per month (as well after as before any demand or judgement or the bankruptcy of the Borrower) on the Loan at the rate per annum determined and notified byUIP Credit Limited.

b). Interest shall be calculated on daily balances and debited monthly by way of compound interest according to the usual mode of UIP Credit Limited but without prejudice to the right of the UIP Credit Limited to require payment of such interest when due.

c). UIP Credit Limited shall have full power in its sole discretion to change and/or vary the rate of interestfrom time to time and at such intervals as it may determine such interest shall be secured inthe same manner as the loan provided also and always that UIP Credit Limitedshall issue to theborrower a thirty (30)day notice prior to any change in the rate of interest..

d). A default penalty interest rate will be solely fixed and/or charged by UIP Credit Limitedon any amountthat remains unpaid after its due date.


3. Approval, Effectiveness of the Loan, and Repayment Installments.

a). UIP Credit Limited may approve the full loan applied for, or a lesser sum, or decline the application inits sole discretion without giving any reasons. Such decision of UIP Credit Limitedmay be byendorsement to that effect in the relevant part of the Application, or by a separate letter,and in either case it shall be effective to bind the parties without any further act by theBorrower.

b). The loan and these conditions shall become effective and the Borrowers obligations to UIP Credit Limited shall commence immediately upon to UIP Credit Limited disbursing the approved amount to the Borrower.

c). The Borrower will repay the Loan in terms of UIP Credit Limited approval or as specified and notifiedby UIP Credit Limited letter or otherwise together with the interest by the number of equal (orsubstantially equal) Monthly Repayment Installments in cleared funds on the RepaymentDates.

d). Upon expiry of each Interest Period, UIP Credit Limited upon determination of the rate of interestpayable for any subsequent Interest Period in accordance with Condition 2 (b), recalculatethe amount if each subsequent Monthly Repayment Installment so as to amortize the balance of the loan and the amount of interest payable for that Interest Period and that prospectively payable for any subsequent Interest Periods over the remaining Monthly Installments.

e). All payments shall be in Kenya Shillings in cleared funds during the normal working hours. If any sum falls due for payment on a day which is not a working day, it shall be made on the immediately preceding day on which is a working day.

f). The loan disbursed will be paid within a period of one to twelve months. No fines shall apply for early repayments.


4. Security.

a). UIP Real Estate Limited may, upon approval of the loan, accept the security offered and to be effectively provided and perfected as a conditionprecedent to disbursements. Provided that, notwithstanding any disbursement made at thediscretion of UIP Credit Limited before perfection of such security, the condition to perfect the securityshall remain valid and binding.

b). In the event that there is a conflict between the provisions of these terms and conditions and the Security, documents the provisions contained in the Security documents will prevail.

c). The signature and delivery of the loan application by the applicant is deemed conclusive evidence of the applicant’s agreement to be bound by the terms of the loan as to the amount of the loan and interest as approved and determined by UIP Credit Limited

d). UIP Credit Limited has the sole discretion to present the securities for registration, provided that ifsuch security being unregistered shall remain valid and binding as between UIP Credit Limited and thecustomer.


5. Covenants.

The Borrower covenants with the UIP Credit Limited that, from the date of executing this terms andconditions until all moneys owing to UIP Credit Limited under this agreement have been paid in full:

a). The Borrower will not, without the prior written consent of the UIP Credit Limited, permit any security interest by the Borrower to subsist, arise or be created or extended over all or any part of the Borrower’s undertaking, property, assets or revenues to secure any present or future Borrowing of the Borrower or any person, unless such Security Interest is at the same time extended equally and rateably to all moneys owing by the Borrower under this Agreement or all such moneys are secured in such manner as shall be acceptable to UIP Credit Limited;

b). The Borrower will perform and observe the covenants agreements and conditions contained in or implied by the grant conveyance transfer assignment lease or other title under which the Property is held or is to be held by the Borrower;

c). Obtain, comply with and promptly renew and maintain all consents, licenses, approvals, rights, powers, privileges, and authorizations (if any) required under any applicable law or regulation to ensure the legality, validity and enforceability of this Letter and the Security;

d). Comply with and observe at all times all the covenants, agreements, stipulations and conditions contained in this Letter, in the Security or in any other security created by the Borrower in favour of UIP Credit Limitedor in any letter or correspondence exchanged between theBorrower and UIP Credit Limited and not without the prior consent of UIP Credit Limited in writing vary orwaive any of the terms thereof;

e). Notify UIP Credit Limited of any event which is or may, with the giving of notice or the lapse of time orboth, constitute an Event of Default;

f). Advise UIP Credit Limited of the occurrence of any event by virtue of which any indebtedness of the borrower (other than the Borrower’s indebtedness under this terms and conditions) iscapable of being declared due and payable prior to its stated maturity or which mightprevent the Borrower from fulfilling the Borrower’s obligations hereunder or under the becurity.


6. Representation and Warranties The Borrower represents and warrants to UIP Credit Limited as follows:

a). The obligations expressed as being assumed by the Borrower under these terms and conditions constitute valid, legal and binding obligations of the Borrower enforceable against the Borrower;

b). Neither the execution and delivery of the form of acceptance endorsed on these terms and conditions by the Borrower nor the performance or observance of any of its obligations under these terms and conditions will conflict with, or result in any breach of, any law, statute, regulation, indenture, mortgage, trust deed, agreement or other instrument, arrangement, obligation or duty by which the Borrower is bound;

c). That the statements made by the Borrower on the application form and is accurate and truthful.


7. In case of default before completion of payment, UIP Credit Limited will be at liberty to sell the property acquired using the credit finance to recover the remaining balance.

8.This agreement is governed by all the terms and conditions of the Transfer of Chattels Act (Cap 28) of the Laws of Kenya.


In these terms and conditions the expression ‘the customer’ shall include any persons, firm, partnership or corporate body.


I/We hereby declare that the information provided above is true to the best of my/our understanding and commit to abide by the Terms and Conditions of UIP Credit Limited with regard to this credit facility. I further accept all liability posed by the credit facility with regard to terms of engagement between myself/ourselves and UIP Credit Limited.

Name of Applicant: ………………………………………………