National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 1 : Interpretation, Purpose and Application of Act

Part B : Purpose and Application

7. Threshold determination and industry tiers

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1)On the effective date, and at intervals of not more than five years, the Minister, by notice in the Gazette, must determine-

a)a monetary asset value or annual turnover threshold of not more than R 1 000 000 for the purpose of section 4(1); and

b)two further monetary thresholds for the purposes of determining the three categories of credit agreements contemplated in section 9.

 

2)For the purpose of applying a monetary threshold determined in terms of subsection (1)(b) to a credit facility, the principal debt of the credit facility is the credit limit under that facility.

 

3)The initial thresholds determined by the Minister in terms of this section take effect on the effective date, and each subsequent threshold takes effect six months after the date on which it is published in the Gazette.