The Hard Money Loan Contract is utilized in South Africa when traditional financing options are not suitable or available, typically in situations requiring quick funding for real estate transactions or development projects. This document is essential for private lenders and borrowers engaging in asset-based lending, where the loan is secured by real property. The agreement must conform to South African legislative requirements, including the National Credit Act 34 of 2005 and related financial regulations. It contains comprehensive details about the loan terms, security arrangements, interest rates (typically higher than conventional loans), repayment schedules, and enforcement provisions. This type of contract is particularly relevant for time-sensitive real estate opportunities, bridging finance, or development projects where conventional banking solutions may not be appropriate or available.

1. Parties: Identification of the Lender and Borrower with full legal names, registration numbers (if applicable), and physical addresses

2. Background: Context of the loan agreement, including the Borrower's request for funding and the Lender's agreement to provide it

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms, security-related terms, and technical references

4. Loan Amount and Purpose: Specification of the loan amount, purpose of the loan, and any conditions precedent to disbursement

5. Interest Rate and Fees: Details of the interest rate, calculation method, and any additional fees or charges

6. Security Arrangements: Description of the property or assets provided as security, including registration of mortgage bonds

7. Repayment Terms: Schedule of repayments, payment methods, and consequences of early or late payment

8. Representations and Warranties: Statements of fact and assurances given by the Borrower regarding their status and the security property

9. Borrower's Covenants: Ongoing obligations of the Borrower during the loan term, including property maintenance and insurance

10. Events of Default: Circumstances constituting default and the Lender's rights and remedies in such events

11. Enforcement and Recovery: Lender's rights and procedures for enforcing security and recovering the debt

12. General Provisions: Standard contractual terms including notices, amendments, governing law, and jurisdiction