Mr. Thomas Nelson, Branch Manager of Regional Bank Ltd to which you are employed as a Junior Loans Officer, has asked you to draft an Offer Letter/ Commitment Letter to ReadyParts Ltd. That company has been approved for credit as set out below. At a minimum, your letter should take into account the items listed below together with the covenants attendant on a credit of this nature.

ReadyParts Ltd is a new Auto Spare shop being established and owned by Mrs. Neil Malcolm and her husband Simon. The company has been approved for a credit of $19,000, 000 broken down as follows:
Demand loan - $12,500,000 at an interest rate of 14% per annum amortized over 60 months at a monthly payment of $290,853.14. (Payment due date is one month after disbursement and disbursement is to be decided by you).
Overdraft - $6,500,000 given at a rate of prime plus 3%. The prime rate is currently 11.5% but this can be adjusted depending on money market conditions.
Shop numbered 17 at 64 Ever Spring Road, is owned by the company on a freehold basis and has no lien. It is valued at $21,000,000 and the bank's policy allows up to $14,000,000 to be accepted as collateral security on properties of this nature. Mrs. Malcolm owns a 2015 Mercedes Benz motor car with chassis numbered 9843524 and valued at $7,000,000. The
bank's policy will allow it to be charged at $3,500,000. Mr Malcolm's brother, Dwight Lewis, has a fixed deposit account in Regional Bank with a balance of $3,000,000 of which he has offered to pledge $1,500,000 as security for the credit facilities.
A commitment fee of one and a half percent (1.5%) of the total facility will be charged and receipt of loan payments after 8 days past the due date will attract a fee of 1.209 per month of the payment due. Stamping and registration fee of $30,000 for all the security documentation has been pre- approved by the relevant government departments.