All templatesDEBENTURE
THIS DEBENTURE is made on the ______ day of ____________ 20____ BETWEEN Rift Valley Hardware Limited ("the Company") AND Stanbic Trust Bank Kenya Limited ("the Lender").
1. Covenant to Pay
The Company will pay the Lender the sums secured by this Debenture, up to KES 45,000,000 ("the Secured Amount"), when they fall due.
2. Charge
As security for the Secured Amount the Company charges to the Lender:
(a) a fixed charge over plant, machinery and book debts; and
(b) a floating charge over all stock-in-trade and other undertaking and assets.
3. Negative Pledge
The Company will not create or allow any other security over the charged assets without the Lender's written consent.
4. Registration
The Company will lodge this Debenture and the prescribed particulars of it with the Registrar of Companies for registration within thirty (30) days after the day on which it is created, as the Companies Act requires.
5. Notices
A notice under this Debenture is given in writing and delivered or posted to the party at its address: the Company at [Company postal address]; the Lender at [Chargee postal address].
6. Assignment
Banking & Finance
Debenture template (Kenya)
What it is for
A sample Debenture for use in Kenya, drafted under the Companies Act Cap 486 and the Insolvency Act Cap 53.
The Kenyan law it follows
- Companies Act Cap 486 — s.878 (a company that creates a charge lodges its particulars and the document with the Registrar) and s.885(1) (the deadline is thirty days from the day the charge is created)
- Insolvency Act Cap 53 — the rights of the holder of a floating charge on insolvency
Who prepares it
This is normally drawn by an advocate, and where it is a court paper, filed by one. The sample shows what the finished document looks like.
Draft this for your matter
Advocates draft this on Lex from their own facts and download it in Word. If you need one prepared for you, find an advocate.
Sample debenture
The first part of the sample is shown here. The names, amounts and facts are made up to show how the document reads.
The rest of this debenture is for Lex members
Create a free account to read the whole sample, draft it for your matter and download it in Word.
This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.