| (1) |
The Minister, in consultation with the Minister of Finance, shall enter into an agreement with the Corporation with the object of insuring on behalf of the Government in terms of policies of insurance any contracts entered into by persons carrying on business in the Republic, being contracts subject to risk of monetary loss or monetary detriment attributable to circumstances beyond the control of the person suffering the loss or detriment and arising out of or in connection with— |
| (b) |
investments in countries outside the Republic; or |
| (c) |
any loan or similar facility connected with any such act, transaction or investment and granted by a person carrying on business in the Republic to any person, for any of the following causes |
| (i) |
the operation of a law, or of an order, a decree or regulation having the force of law, which |
| (aa) |
prevents, restricts or controls the transfer of payments from the buyer's country or from the country in which the investment was made, to the Republic; or |
| (bb) |
prevents, restricts or controls the importation of goods into the buyer's country; or |
| (cc) |
prevents, restricts or controls the transfer from the country in which the investment was made to the Republic of dividends and interest in respect of the investment; |
| (ii) |
nationalization, expropriation or confiscation; |
[Paragraph (ii) substituted by section 2(b) of Act 9 of 2001.]
| (iii) |
the occurrence of war; |
| (iv) |
the occurrence of hostilities, civil war, rebellion revolution, insurrection, or other disturbance outside the Republic; |
| (ivA) |
the failure to repay a loan negotiated for purposes of entering into a trading transaction with a person in a country outside the Republic, or to repay a loan negotiated in connection with such transaction; or |
| (v) |
such other causes as the Corporation deems to arise from risks not normally insurable. |
[Paragraph (v) substituted by section 2(c) of Act 9 of 2001.]
[Sub-section (1) substituted by section 2(a) of Act 34 of 2002.]
| (2) |
The Corporation shall be registered as an insurer as contemplated in section 7(1)(a) of the Short-term Insurance Act, 1998 (Act 53 of 1998), and shall in its capacity as a registered insurer and juristic person be subject to the relevant insurance and company laws. |
[Sub-section (2) added by section 2(d) of Act 9 of 2001.]
| (3) |
Without detracting in any way from the Minister's power to determine through the agreement contemplated in subsection (1) the manner in which the Corporation shall conduct its business, the Minister may appoint members of the Board and the Chief Executive Officer of the Corporation. |
[Sub-section (3) substituted by section 2(b) of Act 34 of 2002.]
| (4) |
The members and Chief Executive Officer contemplated in subsection (3) shall be suitably qualified to perform the functions of the Corporation. |
[Sub-section (4) added by section 2(d) of Act 9 of 2001.]
[Section 2 amended by section 2 of Act 34 of 2002.]
Gold Membership
