Public Service Commission Act, 1997
R 385
Usury Act, 1968 (Act No. 73 of 1968)6K. Money value of leased property at expiry of lease or termination of leasing transaction |
Referenced by:
| 1) | If a leasing transaction in respect of which finance charges are levied, expires or is terminated for reasons other than the failure of the lessee to meet his obligations in terms of such transaction, the lessor shall, notwithstanding anything to the contrary contained in the instrument of debt concerned or in any other agreement between the lessor and lessee-- |
| a) | not more than 30 days before the date on which such transaction expires or is so terminated, determine the money value, as at that date, of the movable property leased in terms of such transaction; and |
| b) | not later than 14 days before that date, in writing notify the lessee of the money value so determined, |
and thereupon the lessor shall be obliged to sell or, in terms of a new leasing transaction, lease such property to the lessee at such money value if the lessee before that date in writing notified the lessor that he intends to buy or again lease such property.
| 2) | Where a leasing transaction in respect of which finance charges are levied is terminated by a lessor on account of the failure of the lessee to meet his obligations in terms of such transaction, the lessor shall determine the money value, as at the date on which such transaction is so terminated, of the movable property leased in terms of such transaction, and notify the lessee in writing within 14 days after the lessor obtains access to the property to enable a valuation to be made. |
| 3) | If-- |
| a) | on expiry of the leasing transaction in respect of which finance charges are levied the money value, as determined in terms of subsection (1), of the movable property leased in terms of the leasing transaction concerned, exceeds the book value thereof or if such property is sold or leased to a person other than the lessee in terms of such transaction, at a price or money value, not including finance charges, exceeding such book value, the lessor in terms of such transaction, shall pay to the lessee, after deducting any amount owing by the lessee to the lessor, in cash the amount by which the money value so determined or the price or money value, not including finance charges, at which such property is sold or leased to such other person, whichever is the greater, exceeds such book value; or |
| b) | a leasing transaction in respect of which finance charges are levied is terminated before the expiry of the lease agreed upon at the conclusion of such transaction, and the movable property leased in terms of such transaction is sold or leased to a person other than the lessee in terms of such transaction, at a price or money value, not including finance charges, exceeding the money value thereof as determined in terms of subsection (1) or (2), the lessor shall pay to the lessee, after deducting any amount owing by the lessee to the lessor, in cash the amount by which the price or money value, not including finance charges, at which such property is sold or leased to such other person exceeds the money value so determined in terms of subsection (1) or (2): |
Provided that the lessor shall, if he after such expiry or termination repaired or caused to be repaired such property, be entitled to reduce for the purposes of calculating the amount to be paid as aforesaid to the lessee in cash, the price or money value at which property was sold or leased to a person other than the lessee by the costs actually incurred by such lessor in respect of such repair.
| 3A) | [Deleted by s.4 of Act No. 67 of 1990]. |
| 4) | Two or more amounts owing and to be paid by the same lessee in connection with several leasing transactions to the same lessor as principal debts and finance charges, shall not be treated by the lessor as single debt. |
