Receivables Purchase Agreement Template for South Africa

The Receivables Purchase Agreement is a key document used in trade finance and working capital solutions in South Africa, enabling businesses to monetize their accounts receivable. This agreement is particularly relevant when companies seek to improve their working capital position by selling their receivables to financial institutions or specialized purchasers. It comprehensively addresses all aspects of the receivables purchase program, including detailed provisions for the identification and sale of eligible receivables, purchase price calculations, servicing arrangements, and compliance with South African regulatory requirements. The document is structured to comply with South African law, particularly considering the requirements of the National Credit Act, Financial Intelligence Centre Act, and other relevant legislation that may impact receivables transfers and collections.

1. Parties: Identification of the Seller and Purchaser, including registration details as required under South African law

2. Background: Context of the transaction and brief description of the receivables being sold

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including specific South African legal terms

4. Sale and Purchase: Core provisions regarding the sale and assignment of receivables, including true sale provisions

5. Purchase Price and Payment: Calculation of purchase price, payment mechanics, and any adjustments

6. Eligibility Criteria: Criteria that receivables must meet to be eligible for purchase

7. Representations and Warranties: Seller's representations regarding the receivables and general corporate matters

8. Undertakings: Ongoing obligations of the Seller, including delivery of information and maintenance of systems

9. Servicing: Provisions regarding the collection and administration of the receivables

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Circumstances allowing termination and consequences

12. Confidentiality: Protection of confidential information and permitted disclosures

13. Notices: Process for giving notices and contact details

14. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and assignment