Income-Generating Activities - Action Against Hunger

Field handbook • Scientific and Technical Department
APPENDIX 16: EXAMPLE OF A DEBTOR CONTRACT
( ____
_______________ Region “ ” ______________ 2005
ACF-E represented by __________, hereinafter referred to as “Lender”, and “XXX”
group created in XXX village of XXX region represented by XXX (passport %……) hereinafter
referred to as “Debtor” concluded the present contract.
Subject of the contract
ACF-E is providing an advance of ___________________ (with figures and written)
in kind (see attachment) without interest for the development of agricultural production
with a group guarantee.
The terms of the contract
The “Debtor” should reimburse the advance without interest (in different time
and amount) to the “Lender” according to the implementation of the activity (period
of implementation of the activity) on the last day of deadline of the contract (the
date and amount is shown in attachment 1 with the signature of the group guarantee).
Liabilities of the parties
The “Lender” should provide the reimbursement contract with signature and
stamp. -To give the advance to the “Debtor” on the day of signing of contract-. To
submit to “Debtor” the document approving the reimbursement of the advance.
The “Debtor” should sign the contract, spend the advance according to the terms
of the contract, ensure the purchased goods, respect the demands of “Lender” and
create the conditions for the “Lender” to monitor the expenditures; and reimburse the
advance by the date shown in the contract.
The rights of the parties
The “Lender” requires the “Debtor” to: spend the advance according to the assignment,
participate and monitor the expenditures, reimburse in time. Any delay in
payment is subject to 2% of interest per month for the delay of reimbursement. The
contract can be terminated with full reimbursement due to inappropriate expenditures
of the advance.
INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY
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