Attorneys Act, 1979 (Act No. 53 of 1979)

Chapter II : Fidelity Fund

Purchase

(1)	Subject to the provisions of this Act, the fund shall be applied for the following purposes, namely—

(a)	all claims, including costs, payable in terms of this Act, and interest as provided in subsection (2);

(b)	in the discretion of the board of control, a contribution towards expenses incurred by a claimant in establishing his claim;

(bA)	in the discretion of the board of control, the costs or any portion thereof incurred by a claimant in exhausting the legal remedies contemplated in section 49(1);

[Section 45(1)(bA) inserted by section 20(a) of Act No. 87 of 1989];

(c)	legal expenses incurred in defending any claim made against the fund or otherwise incurred in relation to the fund;

(d)	premiums payable in respect of contracts of insurance entered into by the board of control in terms of section 40;

[Section 45(1)(d) amended by section 17(a) of Act No. 55 of 2002];

(e)	refunds made to any member or to his estate in terms of section 44;

(f)	expenses involved in the administration of the fund, including allowances to members of the board of control in respect of their services or their reasonable travelling expenses incurred in connection with the management of the fund;

(g)	in the discretion of the board of control, the bank charges or any portion thereof paid by a practitioner in connection with the keeping of his trust account;

[Section 45(1)(g)amended by section 20(b) of Act No. 87 of 1989];

(h)	in the discretion of the board of control, the premium or any portion thereof payable in respect of a professional indemnity group insurance policy taken out in favour of practitioners;

[Section 45(1)(h) inserted by section 17(b) of Act No. 55 of 2002];

(i)	in the discretion of the board of control, the costs or any portion thereof incurred by a practitioner in connection with the obtaining of a fidelity fund certificate;

(j)	in the discretion of the board of control, the defraying of the whole or any portion of the expenses incurred by any society for the purposes of or in connection with any steps taken by it under section 22(1), 78 or 83(13);

[Section 45(1)(j) amended by section 3 of Act No. 80 of 1985];

(k)	loans and interest thereon;

(l)	other moneys which are payable or may be paid from the fund in accordance with this Act or the regulations made thereunder.

(2)	The board of control may in its discretion pay an amount out of the fund as interest on the amount of any judgment obtained or of any claim admitted against the fund: Provided that—

(a)	[Section 45(2)(a) deleted by section 20(c) of Act No. 87 of 1989];

(b)	the rate of interest shall not exceed the prevailing rate of interest prescribed under section 1(2) of the Prescribed Rate of Interest Act, 1975 (Act No. 55 of 1975).