Jewelry Loan Agreement Template for Nigeria

The Jewelry Loan Agreement is essential for transactions in Nigeria where parties seek to establish a secured lending arrangement using jewelry as collateral. This document is commonly used by financial institutions, pawnbrokers, and private lenders when providing loans secured by valuable jewelry items. The agreement ensures compliance with Nigerian financial regulations, including the Money Lenders Act Cap M17 LFN 2004 and the Pawnbrokers Act Cap P2 LFN 2004. It includes crucial elements such as detailed jewelry descriptions, professional valuations, storage requirements, and specific provisions for default scenarios. The document is particularly relevant in situations where borrowers prefer using their jewelry assets as security rather than seeking unsecured loans or using other forms of collateral.

1. Parties: Identifies and provides full details of the lender and borrower, including names, addresses, and any registration numbers

2. Background: Establishes the context of the agreement, stating that the borrower wishes to obtain a loan secured by jewelry and the lender agrees to provide such loan

3. Definitions: Defines key terms used throughout the agreement, including 'Jewelry', 'Loan Amount', 'Interest Rate', 'Security', etc.

4. Loan Terms: Specifies the principal amount, interest rate, repayment schedule, and duration of the loan

5. Security Provisions: Details about the jewelry being provided as security, including description, valuation, and storage arrangements

6. Representations and Warranties: Borrower's declarations regarding ownership and condition of jewelry, and both parties' capacity to enter into the agreement

7. Rights and Obligations: Lists the specific rights and duties of both parties during the loan term

8. Default and Remedies: Defines events of default and outlines the lender's rights and remedies in such cases

9. Return of Security: Conditions and process for returning the jewelry upon full repayment of the loan

10. Governing Law and Jurisdiction: Specifies that Nigerian law governs the agreement and establishes jurisdiction for dispute resolution