Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Usury Act, 1968 (Act No. 73 of 1968)3A. Particulars in instrument of debt relating to payment of outstanding principal debt and finance charges before due date |
Referenced by:
| 1) | Subject to the provisions of subsection (2) every instrument of debt, except a debenture, in terms of which the principal debt and finance charges which are owing by the borrower or credit receiver or lessee concerned, are to be paid over a period in the future in instalments, including finance charges, shall provide the following, namely-- |
| a) | the period, not exceeding 90 days, or, if any longer period is prescribed by regulation for the purposes of this paragraph, not exceeding the period so prescribed from time to time, which shall lapse from the date on which a borrower or a credit receiver or a lessee in writing notified the moneylender or credit grantor or lessor concerned of his intention to pay the outstanding balance of the principal debt and finance charges thereon in one amount before the due date thereof to such moneylender or credit grantor or lessor, before such borrower or credit receiver or lessee shall be entitled so to pay such outstanding balance and finance charges; |
| b) | the minimum period, not exceeding 90 days, which shall lapse after the date of such transaction before any notice referred to in paragraph (a) may be given by or on behalf of a borrower or a credit receiver or a lessee; |
| c) | that any notice referred to in paragraph (a) shall state the date on which the borrower or credit receiver or lessee concerned intends to pay the outstanding balance and finance charges referred to in that paragraph in one amount; |
| d) | that, notwithstanding anything to the contrary contained in the instrument of debt concerned, the date stated in accordance with paragraph (c) in a notice referred to in paragraph (a), shall be deemed to be the date on which the outstanding balance of the principal debt concerned and finance charges thereon shall be paid by such borrower or credit receiver or lessee in terms such instrument of debt: |
Provided that for the purposes of paragraph (a) different periods may be prescribed for transactions of different money values.
| 2) | In any agreement in connection with-- |
| a) | a money lending transaction or a credit transaction where on the date of such transaction the principal debt exceeds R50 000 or such other amount, whether greater or smaller, as may be prescribed by regulation for the purposes of this subsection; |
| b) | a leasing transaction, |
the parties may agree that such transaction shall remain in force and that finance charges be levied until the expiry of the term of such transaction.
