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| Attachment | Size |
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| act-42-1986.pdf | 1.83 MB |
42 of 1986
The Usury (Limitation and Disclosure of Finance Charges) Amendment Act 42 of 1986 intends:
- to amend the Usury (Limitation and Disclosure of Finance Charges) Act, 1968 [repealed in June 2006], so as
- to bring certain arrangements and schemes with·in the ambit of a "credit card scheme"; to extend the definition of "ledger fee" to include fees charged by banking institutions for the initial issue of credit cards;
- to remove certain cash sales of immovable property from the ambit of a "money-lending transaction";
- to include certain further sums in the definition of "principal debt";
- to remove possible doubt as to the meaning of "different money values" in the provisions dealing with the maximum annual finance charge. rates which may be charged in connection with a money lending transaction, credit transaction or leasing transaction, and to provide for a different manner of determining finance charges;
- to exempt instruments of debt in the form of registered bonds from the requirement of disclosure of finance charges, and to provide for the execution of instruments of debt also by a representative of the money-lender, credit grantor or lessor;
- to provide for a different manner of determining finance charges in respect of money lending transactions secured by certain mortgage bonds;
- to provide that the disclosure of finance charges on demand shall be in writing, and that such disclosure may also be made by a representative of the money-lender, credit grantor and lessor;
- to effect a textual alteration as a result of the activities of the National Finance Corporation of South Africa passing to the Corporation for Public Deposits;
- to make other provision regarding the annual finance charge rate which applies when an additional amount is recoverable from a borrower, credit receiver or lessee by reason of his default or the deferment of payment of his debt;
- to provide for certain further sums that may be recovered from a borrower, credit receiver or lessee;
- to remove possible doubt as to the meaning of "leasing transaction" in the provisions dealing with the money value of leased property at the expiry of the lease or the termination of the leasing transaction, and to extend the class,of debts which a lessor may set-off when required to pay a balance to a lessee in those circumstances;
- to replace certain obsolete expressions; and
- to alter the short title; and
- to provide for matters connected therewith.
Commencement
30 April 1986
