Common use of Borrowing from us Clause in Contracts

Borrowing from us. 1.1 Individuals and sole traders are personally responsible for any money owed to us. 1.2 Joint account holders/partners are individually and jointly liable for money owed to us, unless we have agreed otherwise in writing. We have the right to demand repayment from all or any of the account holders or partners for all or part of such money. 1.3 Unless otherwise agreed between us, individuals authorised to give instructions on accounts of unincorporated clubs, charities, societies and other forms of association are individually and jointly liable for money owed to us. This means that we have the right to demand repayment of the full amount owed to us, and not just a share of it, from all or any of the authorised signatories. 1.4 The signatories to a limited company's or a limited liability partnership's or a limited liability company's or trust's account are not normally personally liable for money owed to us, unless they have entered into a separate agreement with us. 1.5 Under the laws of certain countries (including the UK), interest payments by you in respect of borrowings from us (and sometimes other payments by you) may be subject to withholding tax, ie an obligation to deduct tax. This may, for example, depend on your country of residence, and/or on the source of the funds from which you make the payment, and/or on the location of any assets on which the loan is secured. In any case where withholding tax applies, we require the amount you pay us to be 'grossed up'. This means that your total payment must be increased so that, after you have deducted the withholding tax, we will receive the amount we would have received in the absence of a deduction. (For instance, if the interest payment due is £100 but withholding tax of 20 per cent applies, you must pay a total of £125 from which you should deduct withholding tax of £25. We therefore receive £100 after deduction of tax.) You are responsible for the payment of any withholding tax to the applicable tax authorities.