Basic Conditions of Employment Act, 1997
R 385
Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesRules for the administration of a collective investment scheme in participation bonds5. Maximum amount of bond: Collateral security |
| (1) | Where the manager accepts collateral security for the debt secured under a participation bond in the form of a surety or a collateral mortgage bond ranking as first mortgages over immovable property and registered or endorsed as a participation bond, rule 4 applies to such collateral security and the manager may advance:— |
| (a) | in the case of a reducible participation bond, an amount not exceeding seventy-five percent; or |
| (b) | in the case of a non-reducible participation bond, an amount not exceeding sixty seven percent, |
of the aggregate value of the immovable property mortgaged under such participation bond and the immovable property mortgaged under such surety or collateral mortgage bond, as the case may be.
| (2) | Where there is a pari passu ranking charge over the immovable property mortgaged or to be mortgaged under such surety or collateral mortgage bond, the maximum amounts as aforesaid which may be advanced by the manager must be reduced by the maximum possible indebtedness secured under such pari passu ranking charges. |
