CHATTELS MORTGAGE

THIS CHATTELS MORTGAGE (“this Agreement”) dated this day of

20
BETWEEN
SOCIAL ECONOMIC DEVELOPMENT INTEGRATED ORGANISATION (SEDU)
(“the Lender”) of the first part
AND
of I.D. No
(“the Borrower” of the second part)
IN CONSIDERATION OF the Lender loaning certain amounts of money (“the Loan”) to the
Borrower, and the Borrower repaying the loan to the Lender, both parties agree to keep, perform
and fulfill the promises and conditions set out in this Agreement.
WHEREAS the Borrower is a member of
…………………………………………………………………….………………... (Group
name), File No………………… … of Telephone No……………………………. and account
No ……………………………………… with savings amounting to …………………………….

NOW THIS AGREEMENT is entered into voluntarily on the following terms and conditions:
1. Loan
The Lender promises to loan the amount of Ksh
…………………………………………………………………..( Kenya Shillings
………………………………………………………………………………………………….
to the Borrower and the Borrower promises to repay the amount.
The purpose of the loan is:
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

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(Include exact location of place of business project and business name if applicable)

The loan is given and taken on the understanding that is will only be used for the purpose
for which it was taken otherwise it shall be deemed to be due and shall be recalled and be
payable with immediate effect as diversion shall be taken as defeating the purpose for
which it was advanced.
The Loan id further taken on the understanding by the Borrower that the money may be
provided to the Lender in person or paid on behalf of the Borrower for the supply of any
goods, materials or equipment, or partly to the Lender and partly on his/her behalf for
such supply as the Lender deems fit to apply the Loan.
The Borrower also agree that until full payment is made he/she conduct the said business
project in a proper and legal manner including but not limited to the maintenance of
appropriate and proper business records, permits and licenses, if any, and shall allow a
representative of the Lender to leave access to any premises at which the business is
carried on or at which an property used in connection with the same or at which it ought
to be situated for the purposes of inspecting such premises or property including business
records.
2. Security/Collateral
In consideration thereof, the Borrower gives the following as security/collateral knowing
that the same shall be picked up and sold in case of any default on the part of the
Borrower.
Item Approximate value
a. …………………………….............. ……………………………............
b. …………………………….............. ……………………………............
c. …………………………….............. ……………………………............
d. …………………………….............. ……………………………............
e. …………………………….............. ……………………………............

(If more, please attach a list to be signed by both parties)

3. Guarantors
The Borrower having explained to the following persons his/her intention to borrow
money from the Lender, hereby purposes the following persons to be his/her guarantors
and the said guarantors have accepted by appending their signatures to the personal
Guarantee form attached herewith.

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 Name and I.D. Number Group Name and Registration Number
a. …………………………….............. ……………………………............
b. …………………………….............. ……………………………............
c. …………………………….............. ……………………………............
d. …………………………….............. ……………………………............
e. …………………………….............. ……………………………............
f. …………………………….............. ……………………………............
g. …………………………….............. ……………………………............

4. Payment
The Borrower has agreed to be repaying a total of Ksh …………………………….. (Kenya
Shillings ……………………………………………….) per month for
………………………………………………………… months or until the whole loan is paid
to full. This monthly repayment includes both the principal loan and interest. The next date
for each monthly repayment shall be notified to the Borrower at least 30 (thirty) days in
advance.
5. Default
In case of Default or delayed payment on the part of the Borrower in the performance of any
obligation under this Agreement and not withstanding anything contrary in this Agreement,
then the Lender may declare the principle amount owing and interest due under this
Agreement at that time to be immediately due and payable together with a penalty of 20% on
the outstanding balance and may take all necessary steps for its recovery.
6. Governing Law
This Agreement will be construed in accordance with the terms herein and governed by the
Law of Kenya for the time being in force.
7. Costs
All costs, expenses and expenditures including but not limited to the complete legal costs
incurred in preparation and enforcement of this Agreement as a result of default by the
Borrower, will be added on to the principal then outstanding and will immediately be due
and payable by the Borrower.

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 8. Binding Effect
This Agreement will pass to the benefit of and binding upon the guarantors, respective heirs,
executors, administrators, successors and permitted assigns of the Borrower and Lender. The
Borrower waives presentment for payment, notice of non-payment, protest and notice of
protest.
9. Amendments
This Agreement may only be amended or modified by a written instrument duly executed by
the Borrower and the Lender. This will include any modification on payment terms if the
Borrower defaults and the parties are able to come to an agreement on any re-adjustments.
10. Severability
The clauses and paragraphs contained in this Agreement are intended to be read and
construed independently of each other. If any term, covenant, condition or provision of the
Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable,
it is the parties’ intent that such provision be reduced in scope by the court enforceable and
the remainder of the provisions of this Agreement will in no way be affected, impaired or
invalidated as a result.
11. General Provision
Headings are inserted for convenience of the parties and are not to be considered when
interpreting the Agreement. Words in singular mean and include the plural and vice versa.
Words in the masculine mean and include the famine and vice versa.
12. Entire Agreement
This Agreement constitutes the entire agreement between the parties and there are no further
items or provisions, either oral or otherwise.
IN WITNESS WHEREOF the parties have duty affixed their signatures under hand and seal on
This ………………………………………… Day of …………………………………. 20
SIGNED, SEALED AND DELVERED )
This day of 20 )
) BORROWER

4
 )
Before me )
)
SIGNED, SEALED AND DELVERED )
This day of 20 )
) For LENDER
)
Before me )
)

 The said loan shall be disbursed in favour of the Borrower through

(tich appropriately)

a) Cash

b) Personal bank account

• A/C Name …………………………………………

• A/C No …………………………………………….
• Bank ……………………………………………..
c) M-pesa
• Ref Code ………………………………………...

d) As it may be directed by the borrower…………………………………...

• Borrower’s Signature ……………………………

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C) PERSONAL GUARANTEE
WE
1. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

2. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

3. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

4. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

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5. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

6. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

7. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

8. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

9. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

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 10. ………………………………………………………………………………………………
NO ………………………………. Phone No …………...………………………… Group
Account No ………………………………. P.O. BOX ………………….……… Amount
guaranteed kshs ……………………………… ( in words) ………………………………
………………………………………………………………………………………………
Signature ……………………………………………….

I do hereby personally guarantee the performance of the Borrower

…………………………………………...
Who is personally know to us with regards to an agreement (hereinafter referred to as the
Agreement) dated ……………………………………………... by and between Social Economic
Development Integrated Organization (hereinafter referred to as the Lender) and the Borrower.
We confirm that we have read and understood the Agreement and vouch to its truthfulness and
guarantee that in the event that the Borrower fails to make any payment due and the Lender
makes good its claim for the amount due, or if the Borrower fails to perform in any manner with
regards to the Agreement between the two entities, we undertake to make all payments to the
Lender in the same manner as if we were the principals of the said Agreement.
Furthermore, we give the power to the Lender to deduct all or part of our savings jointly and
severally to repay the same and empower the lender to enter into out households and take
possession of our attachable assets against us and in favour of the Lender for any sums due under
the Agreement plus interest and cost incurred, without stay of execution, and with Attorney’s
fees.
We also hereby waive and release all benefits and relief from any and all appraisement, stay of
exemption laws now in force or hereinafter passed.
IN WITNESS WHEREOF the parties to the group who are as described below have duly
affixed their signatures under hand and seal on this Day of 20
Confirming the details in the agreement as aforesaid
SIGNED, SEALED AND DELVERED )
This day of 20 )
) CHAIRPERSON
Before me )
)

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SINGED, SEALED AND DELVERED )
This day of 20 )
) TREASURER
Before me )
)
SINGED, SEALED AND DELVERED )
This day of 20 )
) SECRETARY
Before me )
)

ACKOWLEDGEMENT

1. ……………………………………………………….. (Borrower) do hereby acknowledge

due receipt of cheque number/cash Ksh ……………………………………...………… in
the amount of ……………………………………………………………………… being
the loan advancement from Social Economic Development Integrated Organization
payable under the terms stated above.

Signed by the
Borrower ……………………………………….. Date ………………………………….