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NCA: NEW REGISTRATION REQUIREMENTS WHEN LENDING MONEYTO ALL EXTENDED BUSINESS PARTNERS |
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13/2016 |
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Government Gazette No. 39663 of 4 February 2016 (copy attached for ease of reference)
Notice 158 of 2016 Since its coming into operation, the National Credit Act has obliged anyone lending money in an arm's length transaction to another (except in respect of ‘incidental agreements’) to register with the National Credit Regulator, if that lender is the credit provider in 100 or more credit agreements or the total principal debt owed under all outstanding loans exceeds R500,000. In the realm of property transactions, this triggers compliance issues not only for banks but also for private persons who make interest-bearing loans to property purchasers. Amendments to the Act published on 11 May 2016, now determine a R nil threshold for lender registration for new loans entered into 6 months with effect from 6 May 2016 onwards (see section 42 of the Act). For any queries please contact our property law division at the details below: Allen West Daleen Loubser |
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Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein |
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