| (1) |
A debt intervention applicant who has filed an application for debt intervention contemplated in section 86A may not enter into any further credit agreement, other than a consolidation agreement, with a credit provider unless— |
| (a) |
the National Credit Regulator rejects the application for debt intervention and the prescribed time period for direct filing in terms of section 86A(7) has expired without the debt intervention applicant having so applied; |
| (b) |
the Tribunal has determined that the debt intervention applicant is not over-indebted, or has rejected the proposal of the National Credit Regulator or the debt intervention applicant’s application; |
| (c) |
the Tribunal having made an order or the debt intervention applicant and credit providers having made an agreement re-arranging the debt intervention applicant’s obligations and all the debt intervention applicant’s obligations under the credit agreements as re-arranged are fulfilled, except where the debt intervention applicant fulfilled the obligations by way of a consolidation agreement; or |
| (2) |
If a debt intervention applicant fulfils obligations by way of a consolidation agreement, the effect of subsection (1) continues until the debt intervention applicant fulfils all the obligations under that consolidation agreement, unless the debt intervention applicant again fulfilled the obligations by way of another consolidation agreement. |
| (3) |
A credit provider who receives notice of an application contemplated in section 86A may not exercise or enforce by litigation or other judicial process any right under that credit agreement until— |
| (a) |
the National Credit Regulator or Tribunal rejects the application or the debt intervention applicant is in default under the credit agreement; and |
| (b) |
one of the following has occurred: |
| (i) |
An event contemplated in subsection (1)(a), (b) or (c); or |
| (ii) |
the debt intervention applicant defaults on any obligation in terms of a re-arrangement agreed between the debt intervention applicant and credit providers, or ordered by the Tribunal. |
| (4) |
If a credit provider enters into a credit agreement, other than a consolidation agreement contemplated in this section, with a debt intervention applicant who is expecting, or is subject to, an order related to debt intervention, all or part of that new credit agreement may be declared to be reckless credit, whether or not the circumstances set out in section 80 apply. |
| (5) |
If a debt intervention applicant applies for, or enters into a credit agreement contrary to this section, the provisions related to debt intervention will never apply to that agreement. |
| (6) |
If the Tribunal ordered that the debt that underlies a credit agreement is extinguished, the credit provider may not exercise or enforce by litigation or other judicial process any right under that credit agreement or arising from that order, in respect of the portion of the debt that the order applies to. |
[Section 88A inserted by section 16 of Notice No. 1081, GG 42649, dated 19 August 2019]
Stamp Duties Act, 1968 (Act 77 of 1968)
