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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 6 : Debt

49. Disclosure


(1) Any person involved in the borrowing of money by a municipality must, when interacting with a prospective lender or when preparing documentation for consideration by a prospective investor—
(a) disclose all information in that person's possession or within that person's knowledge that may be material to the decision of that prospective lender or investor; and
(b) take reasonable care to ensure the accuracy of any information disclosed.


(2) A lender or investor may rely on written representations of the municipality signed by the accounting officer, if the lender or investor did not know and had no reason to believe that those representations were false or misleading.