1. Introduction
These Terms and Conditions (“Agreement”) govern the credit facilities provided by OTTO Finance (“the Provider”) to the applicant (“the Borrower”) for the purchase of a horse (“the Asset”). By completing and submitting the application, the Borrower agrees to be bound by these terms.

2. Ownership and Title
2.1. Legal ownership of the Asset shall remain vested with the Provider until the Borrower has fully paid the total amount owing, including all interest, fees, and charges.
2.2. Possession of the Asset does not constitute transfer of ownership. The Borrower shall hold the Asset as security for the debt.

3. Security and Retention of Title
3.1. The Borrower grants the Provider a specific, hypothecary security interest in the Asset under South African law, until the full amount payable is received.
3.2. The Borrower shall not sell, transfer, encumber, or dispose of the Asset in any manner without the prior written consent of the Provider.

4. Payment Terms
4.1. The Borrower agrees to make all payments in accordance with the repayment schedule agreed in the formal loan agreement.
4.2. Late payments will accrue interest at the rate specified in the agreement and may result in penalties.
4.3. Failure to pay may lead to legal action, repossession, and disposal of the Asset without further notice.

5. Repossession and Disposal
5.1. In the event of default, the Provider has the right to repossess the Asset without court order, exercising its rights under the Security Agreement.
5.2. The Provider may sell or dispose of the Asset to recover the outstanding debt. Any proceeds from such sale, after deducting costs, shall be applied to the debt.
5.3. Surplus funds, if any, shall be refunded to the Borrower.

6. Insurance and Maintenance
6.1. The Borrower shall maintain comprehensive insurance on the Asset, naming the Provider as an interested party, with the policy assigned to the Provider until full settlement.
6.2. The Asset must be kept in good condition and not modified without written approval from the Provider.

7. Default and Remedies
7.1. Default occurs if the Borrower fails to make scheduled payments, breaches any clause of this Agreement, or becomes insolvent or sequestrated.
7.2. Upon default, the Provider may accelerate the debt, recall the Asset, and institute legal proceedings to recover the outstanding amount.

8. Transfer and Sub-licensing
8.1. The Borrower shall not transfer, assign, or sublicense this Agreement or the Asset without prior written consent from the Provider.

9. Governing Law
This Agreement shall be interpreted and governed in accordance with the laws of the Republic of South Africa. Disputes shall be resolved by the courts of competent jurisdiction in South Africa.

10. Entire Agreement
This Agreement constitutes the entire understanding between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral.

11. Miscellaneous
11.1. Any amendments or variations to this Agreement must be made in writing and signed by both parties.
11.2. The Provider’s rights under this Agreement are without prejudice to any other rights provided by law.