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The Revolving Promissory Note serves as a vital financial instrument in South African commercial and private lending arrangements, combining the traditional characteristics of a promissory note with revolving credit facility features. This document is particularly useful when parties require a flexible borrowing arrangement that allows for multiple draw-downs and repayments over time, while maintaining a maximum facility limit. It is commonly utilized in business financing, working capital management, and ongoing credit relationships. The document must comply with South African financial regulations, including the Bills of Exchange Act and National Credit Act, and typically includes detailed provisions for draw-downs, interest calculations, repayment schedules, and security arrangements. This instrument provides a more flexible alternative to traditional term loans while maintaining the legal enforceability and negotiability features of a standard promissory note.

1. Parties: Identification of the Maker (debtor) and the Payee (creditor) with full legal names and addresses

2. Background: Brief context explaining the revolving credit arrangement and relationship between the parties

3. Definitions: Key terms used in the note including 'Draw-down', 'Facility Limit', 'Interest Rate', and 'Repayment Date'

4. Promise to Pay: Unconditional promise by the Maker to pay the Payee, specifying the maximum facility amount

5. Revolving Facility Terms: Terms governing the revolving nature of the facility, including draw-down mechanics and facility limit

6. Interest: Interest rate, calculation method, and payment frequency

7. Repayment Terms: Schedule of payments, minimum payment requirements, and prepayment provisions

8. Events of Default: Circumstances constituting default and consequences thereof

9. Security: Details of any security or collateral securing the note

10. General Terms: Standard provisions including amendments, notices, and governing law