The following is a simplified explanation of the meaning and effect of the renunciation of exceptions

and benefits and is provided for information purposes in order to assist our clients to understand the
effect of the legal terminology:

Renunciation of benefits

A renunciation of the following benefits entitles the financial institution to recover the full debt from the
person who renounced these benefits and applies in situations where there is a debtor and a surety
and/or co-or joint debtors.

Beneficium ordinis seu excussionis

A waiver of this benefit by a surety entitles the financial institution to claim payment from the surety
without first exhausting the legal remedies against the principal debtor.

Beneficium de duobus vel pluribus reis debendi

A waiver of this benefit by a co-debtor or surety entitles the financial institution to recover the full debt
from such co-debtor’s surety, without first requiring payment from the other debtor or the principal
debtor.

Beneficium divisionis

A waiver of this benefit by a co-surety entitles the financial institution to recover the full debt owed by
the principal debtor against that surety

Renunciation of exceptions

The renunciation of a legal exception will not preclude such exception from being raised as a defence
to anyone in the event that a dispute arises or legal proceedings are instituted. However, should an
exception be raised as a defence by any party after waiving such exception, then the onus of proving
that such exception and the relevant facts relating thereto, will lie with that party.

Exceptio non causa debiti

The purpose of renouncing exception is to place the onus of proving the absence of a cause of debt
on the debtor.

Exceptio errore calculi

This is the defence that the amount claimed has been incorrectly calculated

Exceptio non numeratae pecuniae

This is the defence that moneys claimed were in fact never advanced to, or received by or on behalf
of the debtor