Below is a copy of an open letter from Dan Chapman of Leathes Prior, the Club's solicitors regarding loans from individual supporters.  The latter part of the letter is a copy of the loan agreement which details the terms and conditions and would be signed by the lender and the solicitors on behalf of Welling United FC.

The content of the letter will be discussed further at tomorrow morning's meeting where hard copies of the emailed letter will be available.  There will also be a supply of loan agrrement forms available. 




To Whom it May Concern

Our Ref    : DHC/FJS/WEL80-3
Your Ref    :   
Ask for    : Dan Chapman
Direct Dial    : (01603) 610911
Fax No    : (01603) 760472
Email    : dchapman@leathesprior.co.uk


Dear Sir/Madam

RE:     Welling United Football Club

I would like to take this opportunity to thank-you on behalf of the Club for your continued loyalty and support.

As you are aware, the Club is facing challenging times and currently has financial difficulties. This has resulted in HM Revenue & Customs petitioning for the winding-up of the Club. If the Club fails to find the necessary funds to satisfy HMRCs petition debt by 15 December 2010 the court will have no realistic alternative but to grant a winding-up order. The consequence of a winding-up order being made are obvious;  Welling United will join the list of clubs (which include Chester, Ilkeston Town and Kings Lynn) to have ceased to exist at the hands of HMRC.   

It has been suggested to the Club that a number of fans may be prepared to offer a loan to the Club to play a part in saving Welling United.

We hope that you also will assist in saving the Club and for that reason I attach a short loan agreement that has been constructed for your benefit. You will note from the agreement that any financial support that you provide will be combined to any other loans provided by loyal fans and used solely for the purpose of clearing the debt owed to HMRC as at 15 December 2010. Should insufficient funds be raised by 15 December 2010 for this purpose then your loan will remain in Leathes Priors client account on trust and will be repaid to you at your request.  I confirm that your money will only be used in conjunction with other monies raised to satisfy the debt to HMRC.    You will see from the agreement the other situations in which you would be entitled to repayment. 

In order to successfully save the Club we need to raise £60,000 promptly. Time is ticking and the deadline is approaching fast.

To help, you simply need to elect the amount you wish to provide to the Club from the following sums: £3,000 / £2,500 / £2,000 / £1,500 / £1,000 / £500.    If you would wish to loan a greater sum then please contact me directly to discuss this. 

You then need to complete the loan agreement, and send this to us with the monies.  The simplest and quickest way to send monies is to create a CHAPS transfer to Leathes Priors client account quoting the reference DHC/WEL80-3. The bank account details are as follows:

Bank Address:        NatWest Bank plc
Norwich City Office
45 London Street
Norwich
NR2 1HX

Sort code:        60-15-31

Account number:    68537956

IBAN:            GB24NWBK60153168537956

Swift/BIC code:    NWBKGB2L


Alternatively, please make your cheque payable to Leathes Prior Solicitors.

Once Leathes Prior has received your payment we will sign the loan agreement and provide you with a copy.  

Should you have any queries then please do not hesitate to contact me by email on dchapman@leathesprior.co.uk or on 01603 610911.

Once again, on behalf of the Club thank you for your continued support to Welling United.

Yours sincerely



DAN CHAPMAN
Partner


Enc.

This loan agreement is made the day of December 2010

BETWEEN:

(1) of (address) (the Lender)

(2) Welling United Football Club (the Club)


WHEREBY IT IS AGREED AS FOLLOWS:


1. The Lender shall lend to the Club the sum of [] (the Loan) to be used in the following specific circumstances:

1.1    If by 15 December 2010, when combined with other loans to the Club held in Leathes Prior Solicitors Client Account on trust, the total loans held are able to clear the Clubs outstanding liability owed to HMRC, the Loan can be drawn against for the purpose of satisfying the debt to HMRC.


2. In consideration of the Lender lending the Loan the Club promises to repay the Loan to the Lender in the following instalments (the Lender being given the opportunity to elect the repayment option at 2.2 in conjunction with 2.1)

2.1     Repayment of £ a year commencing on 2011. To be repaid by no later than in any financial year.

2.2    The granting of a season ticket for individuals of the Lenders choosing may be treated as part payment (to the value of the season ticket at its lowest possible purchase price)


3. No interest shall be paid on the Loan.
4. Notwithstanding anything else contained in this agreement the whole of the Loan or so much of it as for the time being remains outstanding shall immediately become repayable in any of the following events:
4.1     if an order is made or a resolution passed for winding up the Club (otherwise than for voluntary liquidation for the purpose of reconstruction or amalgamation the terms of which resolution have been previously approved in writing by the Lender);
4.2    if the Club is subject to a takeover (other than if previously approved in writing by the Lender);
4.3    if the Club shall commit or permit any breach of any of the stipulations and provisions contained in this agreement and on its part to be observed and performed.
5. The Lender shall not be entitled to assign the benefit of this agreement.

SIGNED BY                 SIGNED BY THE LENDER

                    ..
On behalf of Welling United Football Club