February 03, 2025
AJETUNMOBI TOYIN ENITAN
Trading under name and style
TY DYNASY DUDU INFINITY BY NATURE
10, Oshundeyi Street Mafoluku,
Lagos State.
Dear Sir,
RE: OFFER LETTER – N5,000,000 (FIVE MLLION NAIRA ONLY) BUSINESS
SUPPORT FACILITY
Further to your request for the subject facility, we are pleased to inform you that the
facility has been approved under the following terms and conditions:
Facility Type: BUSINESS SUPPORT FACILITY
Lender: Sterling Bank Limited (“Sterling”/ “Bank”)
Borrower: Ajetunmobi Toyin Enitan (Trading Under name and
Style of
TY DYNASTY DUDU INFINITY BY NATURE (“Borrower”)
Bank Verification
Number: 2215777100 – Ajetunmobi Toyin Enitan
Tax Identification 24422772 - 0001
Number:
Amount: N5,000,000 (Five Million Naira Only)
Tenor: 12 Months
Purpose: To augment working capital and stock up goods
Interest Rate: 36% p.a. (floating)
Annual Percentage
Rate: 46.25%
Rate Review: These rates are subject to review/change in line with money market
conditions at any time or at the Bank’s discretion. The Bank will
send a notification via email or Short Message Service (SMS) or
written letter in advance of the application of the new rate.
However, the Bank has the right to implement the changes at the
end of the notice period if there is no response to the notice.
Repayment: Equal monthly repayment of N 502.310.43
Repayment Source: The facility will be repaid from the Borrower’s business
proceeds and other cashflow sources available to the Borrower.
Repayment Mode:Interest and principal repayments shall be repaid monthly
Management Fee: 1% flat
Insurance Fee: 3.5% per annum payable upfront
Stamp Duty: 0% of the facility amount (payable upfront)
SECURITY:
i. Stock hypothecation.
ii. 2 Third-party Guarantee with other bank’s undated cheque covering facility amount
drawn on the guarantor’s personal account supported by statement of personal net
worth.
iii. 3.5% Credit Life Insurance
CONDITIONS PRECEDENT TO DRAWDOWN
1. Submission of request letter for the facility.
2. Submission of duly executed offer letter in acceptance of the facility.
3. Submission of duly executed credit Facility Agreement.
4. Submission of letter of commitment to repay facility.
5. Payment of upfront fees.
TRANSACTION DYNAMICS
1. The Borrower submits executed offer letter, credit facility agreement and any other
required document
2. Borrower funds the account for upfront fees which is debited upon receipt of
documents.
3. Loan is booked for approved tenor.
4. Borrower’s account is debited monthly for loan repayment
A. Other Conditions
1. This Offer letter shall not be binding unless it is accepted unconditionally and
returned to the Bank within 30 days from the date hereof. Upon acceptance, it shall
remain valid for a period of 90 days, after which it is deemed to have elapsed if the
facility is not utilized.
2. Without prejudice to the foregoing, the Bank reserves the right to vary, alter or
amend any of the terms and conditions of the facility as and when the need arises.
3. All expenses incurred in the arrangement, documentation and enforcement of
payments under the facility, including all professional, valuation, legal fees,
monitoring, taxes and commissions (if any) would be borne by the Borrower and the
Bank shall be entitled to debit the Borrower’s account immediately for such
expenses.
4. Utilization of the facility or any part thereof shall be at Sterling’s discretion and is
subject to satisfactory documentation and regulation of Central Bank of Nigeria
(CBN) as may be laid down from time to time.
5. The Borrower acknowledges that the Bank is a financial institution regulated by CBN.
6. The Borrower hereby agrees to indemnify the Bank against any loss howsoever
occurring that the Bank may incur, as a result of any misrepresentation, irregularity
or incompleteness in the information contained in any document submitted to the
Bank.
7. Where there is a turnover covenant, and there is default in the turnover covenant,
which exceeds a continuous period of three (3) months and extends up to six (6)
months, in addition to the increase in the interest rate pricing mentioned above, the
approved limit for the facility shall be reduced, to match the level of the turnover
achieved.
8. Funds received into the account when the principal and/or interest are past due, will
be applied first to the overdue interest before the outstanding principal amount.
9. The facility shall terminate and all sums due to the Bank hereunder shall become
immediately due and payable if the Borrower commits any breach or defaults under
the terms of this facility or any other credit facility granted the Borrower by Sterling
or any other bank.
10. The Bank reserves the right to cancel its commitment unconditionally if the facility
remains undrawn or if, in the Bank’s opinion, there is any deterioration in the
Borrower’s credit worthiness and the Borrower shall thereafter be notified of such
cancellation.
B. Insurance, Renewals and Asset Revaluations
i. Where it is necessary to insure any or all parts of the facility or security pledged, the
Bank shall use any of the Insurance companies in the table below, please indicate
your choice from the available options;
Insurance Companies Select any of the
options
EMPLE (Formerly Old Mutual Nigeria) Life Assurance X
Company
Custodian & Allied Insurance Limited
NEM Insurance Plc
AIICO Insurance plc
Prestige Assurance plc
Sovereign Insurance plc
Axa Mansard Insurance Plc
Saham Unitrust Insurance
ii. Renewal of insurance cover(s) on any or all parts of the facility or security pledged,
shall be notified to the Borrower at the expiration of the insurance policy, and the
Bank is hereby authorized to debit the Borrower’s account for the renewal premium.
iii. The Borrower acknowledges that during the tenor of the facility, the Bank may,
where necessary, revalue any security pledged towards the facility. The revaluation
shall be carried out by the Bank’s approved valuer, with notice to the Borrower. The
revaluation fee shall be borne by the Borrower and the Bank is entitled to debit the
Borrower’s account for such expense.
B. Events of Default
The occurrence of any of the following events shall cause all outstanding under the
facility to be immediately repayable:
i. If the Borrower fails to pay monthly interest as and when due or the Borrower fails to
pay outstanding principal sum at maturity of the facility; or
ii. If the Borrower fails to settle, when due, any outstanding amount owed to and
advised by the Bank; or
iii. If the Borrower defaults in the performance or observance of any other term,
condition or covenant herein and such breach or default shall continue on
unremedied after ten (10) days’ notice shall have been given to the Borrower or If an
order is made; or
iv. If a distress or execution is levied upon or issued against the Borrower’s property
and is not discharged within five (5) days or an encumbrancer takes possession of all
or any part of the Borrower’s undertaking and asset; or
v. If the Borrower ceases or threatens to cease to carry on business or if in the opinion
of the Bank, there shall be any material adverse change whatsoever in the business,
assets, financial condition and operation of the Borrower; or
vi. If the Borrower is unable to pay any of the Borrower’s debts to any other party; or
vii. If the Borrower does not comply with Environmental and Social (E&S) Laws (where
applicable).
C. Covenants
The Borrower undertakes that during the validity of the facility while there are any
outstanding thereon, it shall:
i. Provide the Bank annually with a copy of the Borrower’s audited accounts and other
financial information.
ii. Not create or allow to subsist any charge, mortgage, pledge, lien or other
encumbrance over the Borrower’s assets or undertaking without the Bank’s prior
written consent.
iii. Not to sell, transfer or otherwise dispose of the Borrower’s assets or undertaking
without the Bank’s prior written consent.
iv. Not, without the Bank’s prior written consent, make any offer of employment or
engage either directly or indirectly any staff of the Bank that is involved in providing
advisory or relationship management services in respect of the facility, during the
tenor of the facility or within twelve (12) months of the liquidation/repayment of the
facility.
v. At any time and from time to time, upon the written request of the Bank, promptly
and duly execute and deliver such further instruments and documents and take such
further actions as the Bank reasonably may request for the purposes of obtaining or
preserving the full benefits of this facility and of the rights and powers herein
granted.
D. Representations and Warranties
The Borrower represents and warrants to the Bank as follows:
i. The Borrower has the power and authority to take up this facility upon the terms and
conditions outlined and to observe and perform the Borrower’s obligations
hereunder
ii. That all information relating to the Borrower or otherwise relevant to matters
contemplated herein as supplied by the Borrower to the Bank is true and correct in
all material respects.
iii. There is no pending or threatened action, litigation, arbitration or administrative
proceedings before any court, arbitral body or agency which may materially
adversely affect the Borrower’s financial condition, business or affect the Borrower
as a going concern and impact the Borrower’s ability to repay the loan or which may
affect the validity or enforceability of this contract. However, if there are pending
litigations, the Borrower shall so disclose.
E. Default Interest
a) If the Borrower fails to pay any amount payable by the Borrower under this facility
on its due date, interest shall accrue on the overdue amount from the due date up to
the date of actual payment at a rate which, subject to paragraph (c) below, is 1.00%
per month in addition to the rate which would have been payable if the overdue
amount had, during the period of non-payment, constituted a Loan in the currency of
the overdue amount for successive Interest Periods.
b) The Bank shall notify the Borrower within 3 days from the first day of default that a
default charge would be applied on the account 7 days from the date the obligation
becomes due.
c) If any overdue amount consists of all or part of a Loan which became due on a day
which was not the last day of an Interest Period relating to that Loan:
i. the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to that Loan;
and
ii. the rate of interest applying to the overdue amount during that first Interest
Period shall be 1.00% per month in addition to the rate which would have
applied if the overdue amount had not become due
d) Default interest (if unpaid) arising on an overdue amount shall be compounded with
the overdue amount at the end of each Interest Period applicable to that overdue
amount and will remain immediately due and payable
F. Facility Review
It is the Bank’s policy to review facilities from time to time, in the light of changing
market conditions and or financial conditions of the Borrower. The Bank reserves the
right to change, vary, or cancel at any time, with adequate notice to the Borrower,
the nature and amount of the facility as well as the underlying terms, conditions and
security arrangement. Therefore, notwithstanding anything in this Offer to the
contrary, this facility is regarded as payable at any time at the option of the Bank.
G. Voluntary Prepayment
The Borrower may repay the whole or any part of the loan upon giving the Lender 7
(seven) Business day’s prior notice. Any amount prepaid may not be redrawn (and
shall be applied against scheduled repayments in (inverse order of maturity). Any
amount prepaid shall include interest and any pro rata amount of fees that become
due and payable on the immediately succeeding due date for such fees. Provided
however, that the Borrower may be charged a fee if the Borrower pays off the loan
before maturity.
H. Consent to Disclose Credit Information to Credit Bureaus
a) The Borrower hereby consents that the Bank may collect, use and disclose our
transaction/ information to the appointed Credit Bureau and that the Credit bureau
may use the information for any approved business purposes as may from time to
time be prescribed by the Central Bank of Nigeria and/ or any relevant statute.
b) The Borrower also authorizes the Bank to conduct previous/current credit
information checks on us / me from other financial institutions through any relevant
means/ agency.
I. Right of Set-Off
i. The Borrower covenants that in case of default, in addition to any general lien or
similar right to which Sterling as a bank may be entitled by law, the Bank may at any
time combine or consolidate all or any of the Borrower’s accounts with and liabilities
to the Bank, set off or transfer any sum(s) standing to the credit of any one or more
of such accounts in or towards the satisfaction of any of the Borrower’s liabilities to
the Bank or any other account or in any other respect whether such liabilities be
actual or contingent, primary or collateral and several or joint, and notice of the set-
off shall thereafter be given to the Borrower.
ii. The Borrower covenants to repay the loan as and when due. In the event that the
Borrower fails to repay the loan as agreed, and the loan becomes delinquent, the
Bank shall have the right to report the delinquent loan to the Central Bank of Nigeria
(CBN) through the Credit Risk Management System (CRMS) or by any other means,
and request the CBN to exercise its regulatory power to direct all banks and other
financial institutions under its regulatory purview to set off the Borrower’s
indebtedness from any money standing to the Borrower’s credit in any other bank
account and from any other financial assets they may be holding for the Borrower’s
benefit.
iii. The Borrower covenants and warrants that the Bank shall have power to set-off the
Borrower’s indebtedness under this loan agreement from all such monies and funds
standing to the Borrower’s credit/benefit in all such accounts or from any other
financial assets belonging to the Borrower and in the custody of any such bank.
iv. The Borrower hereby waives any right of confidentiality whether arising under
common law or statute or in any other manner whatsoever and irrevocably agrees
that the Borrower shall not argue to the contrary before any court of law, tribunal,
administrative authority or any other body acting in any judicial or quasi-judicial
capacity.
C. Taxes
It is a condition of this offer that the Borrower shall bear all taxes including Stamp
Duty, and/or any other levies, duties, or charges as may be levied from time to time
by the government or other authorities of government, including those taxes or
charges that may be incurred by the Bank, in accordance with the laws of the
Federal Republic of Nigeria for the time being in force, in respect of, or in connection
with this facility.
J. Lien
The Borrower hereby grants the Bank an irrevocable and unconditional right of lien
over the Borrower’s assets. The lien shall remain in force for as long as any part of
the facility is outstanding.
K. Assignment
The Borrower hereby acknowledges that the Bank may sell, transfer, assign, novate
or otherwise dispose of all or part of its rights or obligations (including by granting of
participations) under this Agreement to another bank or financial institution or to a
trust, fund or any other entity which is engaged in or established for the purpose of
making, purchasing or investing in loans, securities or other financial assets. The
Borrower hereby agrees to execute all documents and take all such steps as may
reasonably be required by the Bank to give effect to such an assignment or transfer.
L. Material Adverse Event
This Facility shall be withdrawn or terminated if a situation, change or default occurs
or threatens to occur which in the opinion of the Bank would adversely affect the
ability of the Borrower to perform the Borrower’s obligations as outlined in this offer
letter. In the event of any such termination, any fees paid by the Borrower to the
Bank shall not be refunded.
M. Waiver
No failure or delay by the Bank in exercising any remedy, power or right hereunder
shall operate as a waiver or impairment thereof nor shall it affect or impair any such
remedies, powers or rights in respect of any subsequent default.
D. Notices and Complaints
i. All notices, consents, requests, demands, and other communications required
hereunder or given pursuant to this Facility shall be in writing addressed to that
party at its respective address and delivered personally or sent by SMS, post, courier
or email.
ii. Any complaint arising from this facility shall be made in writing and delivered to the
Bank personally or sent by post, courier or email at the address set out below or at
such other current address as is specified by Sterling to the Borrower by notice;
To: STERLING BANK LIMITED
Sterling Towers, 20 Marina, Lagos
Attention: Group Head Customer Experience
Email: customercare@sterling.ng
Phone no; 070078375464; 07008220000
iii. Where necessary, the Borrower may escalate to CBN using the following information;
To: Consumer Protection Department
Central Bank of Nigeria
P.M.B 0187
CBD, Abuja
Email: cpd@cbn.gov.ng
E. Cooling Off Period:
The Borrower may cancel this loan contract within 3 days after signing without any
penalty or charges, however, the Borrower reserves the right to waive this option by
notifying the Bank in writing.
Please indicate your acceptance of these terms in the space provided below.
Yours faithfully,
For: Sterling Bank Limited.
Kayode Akinde Adefunke Amusan
Team Lead Zonal Head
MEMORANDUM OF ACCEPTANCE AND UNDERTAKING
I, AJEUNMOBI TOYIN ENITAN Trading under name and style of TY DYNASTY DUDU
INFINITY BY NATURE hereby accept the terms and conditions contained in this offer
letter dated 3rd February 2025
Signature:
Date:
In the presence of:
Name:
Address:
Occupation:
Signature:
Date:
