Bills received but not due Total amount of bills received from your customers which are not yet due.

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Ashley Evans
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1 Allocation A BNP Paribas Factor staff member assigns a payment to an account upon receipt. After reconciliation, he pays off the corresponding invoice partially or in full. Approval By issuing an approval for a set purchaser, BNP Paribas Factor agrees to take over your debts with this purchaser under the modalities determined in your factoring contract. The approval can include an outstanding amount limit (see approval ceiling). Before submitting any invoices, you must obtain BNP Paribas Factor approvals to suit your requirements for each of your customers. Any unused approval for six consecutive months are cancelled automatically. Bills received but not due Total amount of bills received from your customers which are not yet due. Commission on promissory notes Commission calculated on a pro rata basis on the amount of the promissory note issued by BNP Paribas Factor. Contract number This eight-figure number is allocated to you when you sign your contract and allows us to identify you.

The approval can include an outstanding amount limit (see approval ceiling).

2 Conventional subrogation This is the legal medium whereby the ownership of your invoices are transferred to BNP Paribas Factor (Art. 1249, 1250 and subsequent articles of the Civil Code). Customer Business which has signed a factoring contract with BNP Paribas Factor = your company. Direct payment Settlement made to you directly by your customer in payment of an invoice assigned to BNP Paribas Factor. You must then reimburse us the amount upon receipt by returning the payment to us as is if it is a cheque of bill or by sending us the equivalent amount if it is a transfer. Drawing right Financing method at the client request depending on his requirements. Factoring This is a set of three services offered by a factor to businesses so that they can outsource the management of their accounts receivable: managing invoices and their recovery, guarantee against insolvency, fin a n cin g. Factoring account Account in which all operations relating to your factoring contract are recorded: purchase of your debts, withdrawal of various charges, financing,... Its credit balance is the amount available for financing. Factoring fees Fees received by BNP Paribas Factor in payment of services rendered in managing customer accounts and the performance guarantee. This is a flat calculation on the amount of each invoice submission. Fees on promissory notes Fees calculated on a pro rata basis on the amount of the promissory note issued by BNP Paribas Factor.

Direct payment Settlement made to you directly by your customer in payment of an invoice assigned to BNP Paribas Factor.

3 Financing This is the advance of sums available in your factoring account following take over of your invoices. You can request financing when submitting invoices or at any moment according to your needs and within the balance available. We provide this financing by transfer(s) and/or promissory note(s), according to the terms of your contract. Financing account This is the cash-flow account. It s used to calculate the interest due for a period. Guarantee against insolvency Insurance against the insolvency of a company (risk of final failure of your customers = ceasing of payments, judicial recovery or liquidation) or performance guarantee of the payment of a debt. This guarantee is issued within the limit of approved amounts. Guarantee fund A guarantee fund is constituted, depending on the provisions in your contract to guarantee the reimbursement of any sum you may owe BNP Paribas Factor. The sums thus allocated as guarantee will only be paid back to you after final closure of accounts. Guarantee limit (or approved amount) It determines the amount of the guarantee granted by BNP Paribas Factor for a specific purchaser. The guarantee amount is given for an amount including VAT for each main establishment identified by its SIREN number. Invoices due, not paid Invoices past their due date and not yet paid in full. Invoices for collection or unavailable Invoices purchased by BNP Paribas Factor but not financed. The amount of these invoices is available as and when BNP Paribas Factor collects payments from your customers. Invoice purchase When invoices are assigned to the Factor, they are credited to the factoring account, representing the purchase of these invoices and their transfer of ownership.

We provide this financing by transfer(s) and/or promissory note(s), according to the terms of your contract. Financing account This is the cash-flow account.

4 Notification Your customers are advised of the existence of a factoring contract between you and BNP Paribas Factor. It takes the form of a registered letter with acknowledgement of receipt sent by you to your customers and affixing the subrogation statement on your invoices. Outstanding customer used amount The outstanding customer used amount is the total of purchased, unpaid invoices minus credit notes (including bills received but not due). Outstanding purchaser amount overrun Outstanding amount for a purchaser higher than the guarantee limit. BNP Paribas Factor doesn t guarantee any invoice potentially purchased for a purchaser overrunning the agreed limit. Outstanding purchaser used amount This is the outstanding used amount for a purchaser, i.e. the amount of invoices purchased for this purchaser and not paid, minus credit notes (including bills received but not due). Pre-calculated interest During financing, interest is paid on the financed part by transfer to the provisional financing period base using the formula: IP = MF x TF/360 days x DP, where: > IP = Pre-calculated interest, MF = Amount financed, TF = Annual financing rate, DP = Provisional financing period (in number of days). Purchaser Customer of the business which has signed a factoring contract = your customer. Purchaser number A nine-figure number is allocated to each of your purchasers (different from its SIREN). In the BNP Paribas Factor computer system, this number signifies exclusively the relationship between you and your customer. Your own customer account numbers can be used if you so request. Recovery BNP Paribas Factor chases in a variety of ways, by post or telephone, to recover payment of assigned invoices from your purchases on the dates agreed on the invoices.

Outstanding customer used amount The outstanding customer used amount is the total of purchased, unpaid invoices minus credit notes (including bills received but not due).

5 Revolving If the limit on your client is not enough when purchasing the invoice, the part of the invoice not covered will be manaegs as non guaranteed. Settlements received after will "free" the limit which allows to guarantee the amounts not yet guaranteed, in the limit of the approval Submission This is the set of invoices assigned to BNP Paribas Factor. A submission comprises one copy of invoices bearing the subrogation statement - you send the originals directly to your customers -, the subrogatory discharge and the supporting documentation provided for in your contract. Subrogation statement The subrogation statement must be affixed to every copy of invoices issued. It tells your customers that the invoices have been assigned under a factoring contract and must, therefore, be settled directly to BNP Paribas Factor. Subrogatory discharge The subrogatory discharge confirms the transfer of ownership of debts to us. It must be sent duly completed, signed and bearing your company stamp with each invoice submission. It summarises the invoices sent to BNP Paribas Factor and the desired financing modalities. Supporting documentation Documents backing up an invoice (written order, delivery note, etc.). The supporting documentation defined in the conditions of your contract must be sent to BNP Paribas Factor with your invoice submissions. Unavailable or collection account When your invoices cannot be financed or when a payment you are expecting is not yet due, these operations are moved into an unavailable or collection account, a sub-account of the factoring account.

UPDATED DRAFT DEBT AND CREDIT CONTROL POLICY

UPDATED DRAFT DEBT AND CREDIT CONTROL POLICY UPDATED DRAFT NALEDI LOCAL MUNICIPALITY Council resolves to adopt the following proposal as the Debt and Credit Control Policy of the Naledi Local Municipality Policy effective date: [30 May 2012] Approved