Credit Agreements Act

CREDIT AGREEMENTS ACT 75 OF 1980

TABLE OF CONTENTS

REGULATIONS

GNR.401 of 27 February 1981 Regulations in terms of section 3 of the Act

NOTICES

GNR.402 of 27 February 1981 Notice in terms of Section 2 – Determining Application of the Act

GNR.1252 of 12 June 1981 Notices of Exemption under Section 2 (2)

GNR.734 of 16 April 1982 Exemption from Sections of the Act

GNR.410 of 31 March 1999 Assignment of inspection functions

GNR.1309 of 12 November 1999 Assignment of inspection functions

GN 282 of 29 March 2005 Assignment of inspection functions

REGULATIONS

GNR.401 of 27 February 1981: Regulations in terms of section 3 of the Act

NOTE:—These Regulations were published in Government Notice R401 in Regulation Gazette 3147 of 27 February 1981, which repealed Government Notice R2573 in Regulation Gazette 3111 of 12 December 1980. These Regulations were amended by:

GN R362

GG 8054 26/2/82

GN R2826 RG 3524 31/12/82

GN R1699

RG 3728 3/8/84

GN R455

RG 3803 22/2/85

GN R1962

RG 3855 30/8/85

GN R2049

RG 3867 13/9/85

GN R2216

RG 3875 24/9/85

GN R2283

RG 3877 4/10/1985

GN R944

RG 4205 5/5/88

GN R1642

RG 4243 13/8/88

GN R949

6/5/89 GN R1007

19/5/89

GN R1137

26/5/89

GN R2422

GG 12168 3/11/89

GN R2459

GG 12177 3/11/89

GN R2471

GG 12169 7/11/89

GN R2489

GG 12179 9/11/89

GN R535

GG 12338 9/3/90

GN R956

GG 13887 27/3/92

GN R988

GG 13900 27/3/92

GN R3218 GG 14425 27/11/92

GN R496

GG 14672 26/3/93

I, Dawid Jacobus de Villiers, Minister of Industries, Commerce and Tourism, in terms of section 3 of the Credit Agreements Act, 1980 (Act No. 75 of 1980), hereby promulgate the regulations in the Schedule hereto.

D J DE VILLIERS,

Minister of Industries, Commerce and Tourism

SCHEDULE

1. In these regulations any expression to which a meaning has been assigned in the Act shall have that meaning, and unless the context otherwise indicates—

“cash price” in relation to goods, means the price at which goods are normally sold by the credit grantor on immediate payment of the full purchase price and includes a selling price referred to in the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968);

“finance charges” means finance charges as defined in the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968);

“the Act” means the Credit Agreements Act, 1980 (Act No. 75 of 1980).

2. Subject to the provisions of regulations 3 and 4, all credit agreements entered into in respect of the goods listed in column 1 of Annexure A shall comply with the provisions in regard to—

the maximum period within which the full price under such credit agreements shall be paid, as prescribed in column 3 of that Annexure;

the portion of the cash price or any other consideration which shall be paid or delivered as an initial payment or initial rental in terms of such credit agreements as prescribed in column 2 of that Annexure. 3. (1) In the case of a leasing transaction in respect of any of the goods listed in items 3, 7 and 8 of column 1 of Annexure A—

the parties shall at the time the leasing transaction is entered into agree—

on the period of such leasing transaction;

on the amount of each instalment payable after the initial rental;

the initial rental shall be equal to at least 10 per cent of the total rental payable for the period of the leasing transaction (but excluding finance charges, if any) in terms of such leasing transaction;

the initial rental referred to in paragraph ( b ) shall be refunded to the credit receiver on the expiry or the termination of the leasing transaction or set off against the last instalments in respect of the leasing transaction;

where finance charges are not levied in terms of the provisions of the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968), the period of the leasing transaction shall not be more than 30 months unless the parties thereto have the right to terminate such leasing transaction at any time after 30 months by giving 30 days notice in writing;

the first of the instalments intended in paragraph ( a ) (ii) shall be payable not later than the end of the months following the months in which delivery was effected;

the credit grantor in terms of such leasing transaction shall, during the currency of the leasing transaction, be responsible for the maintenance of the goods. (2) In the case of a credit agreement in respect of any of the goods listed in items 3, 7 and 8 of column 1 of Annexure A the conditions laid down in regulation 2, 3 (1) ( b ), ( c ) and ( d ) shall not apply to such credit agreement if the goods are used by the credit receiver for monitoring, instructional, educational and security purposes or multiple viewing situations and payments in terms of the agreement, or amounts representing depreciation or wear or tear of the goods purchased, are amounts allowed to be wholly or partly deducted from or set off against the taxable income of the credit receiver under Part I of Chapter II of the Income Tax Act, (Act No. 58 of 1962), or if the income of the credit receiver under such agreement is exempt from tax in terms of the said Income Tax Act.

[R. 3 amended by GN R2049 of 1985 and by GN R988 of 1992.]

4. (1) In the case of a credit transaction in respect of any of the goods listed in items 9 and 10 of column 1 of Annexure A the conditions laid down in regulation 2 shall not apply to such credit transaction if payments in terms of the transaction, or amounts representing depreciation or wear and tear of the goods purchased, are amounts allowed to be wholly or partly deducted from or set off against the taxable income of the credit receiver under Part I of Chapter II of the Income Tax Act, 1962 (Act No. 58 of 1962) or if the credit receiver is exempt from income tax in terms of section 10 (1) ( f ) of the Income Tax Act, 1962.

[Sub-para. (1) amended by GN R496 of 1993.]

(2) In the case of a leasing transaction in respect of any of the goods listed in items 9 and 10 of column 1 of Annexure A, the conditions laid down in regulation 2 shall not apply to such leasing transaction—

(i) if payments in terms of the transaction are amounts allowed to be wholly or partly deducted from or set off against the taxable income of the credit receiver under Part 1 of Chapter II of the Income Tax Act, 1962 (Act No. 58 of 1962); or

if the credit receiver is exempt from income tax in terms of section 10 (1) ( f ) of the Income Tax Act, 1962; or

[ Item ( a ) substituted by GN R3218 of 1992.]

if a credit grantor in terms of such leasing transaction normally leases any of the said goods on conditions in terms of which the credit receiver remunerates the lessor in full or in part for the use of the said goods at an agreed tariff per kilometre, and such leasing transaction is made subject to the said conditions.

5. No credit agreement shall be entered into by a credit grantor or lessor subject to the conditions that—

payments, other than the initial payment or rental under the said agreements are to be made to the credit grantor or lessor before the goods are delivered: Provided that this prohibition shall not apply to any credit agreement providing for the goods in question to be imported into the Republic as per order of or be manufactured according to the written requirements of the prospective credit receiver;

the amount of any one instalment payable under the said agreement after the initial payment or initial rental differs by more than 10 per cent from any of the other instalments, excluding the final instalment which may be smaller than the amount of that one instalment: Provided that the provisions of this regulation shall not apply to a credit agreement intended in regulations 3 (2) and 4.

6......

[R. 6 withdrawn by GN R362 of 1982.]

7. These regulations shall come into operation of 2 March 1981.

8. Government Notice R2573 of 12 December 1980 is hereby repealed.

Annexure A

Column 1 Column 2 Column 3 Portion of Period of the cash payment price Months Good Per cent from date of delivery 1. 10 24 Household furniture, including garden furniture, lawnmowers, mattresses, floor carpets and floor rugs, irrespective of the material from which these articles are manufactured 2. Electrical and non-electrical appliances for domestic 10 24 use 3. Television receivers, accessories and parts thereof but 10 24 excluding closed circuit television equipment 4. Radios and gramophones, sound recorders and reproducers, record players, laser disc players, tape 10 24 and wire decks, loud-speakers, amplifiers, accessories and parts thereof for these articles 5. 20 18 Jewellery, clocks and watches and parts thereof 6. Photographic and cinematographic cameras, enlargers, reducers and projectors, including accessories for 20 18 these articles, but excluding equipment for cinemas and theatres, microfilm equipment and lithographic process cameras 7. Video cassette recorders and players, video tape 20 18 recorders and players, and video recorders and cameras and decoders 8. 20 18 Electronic television games 9. Mechanically propelled motor vehicles not subject to the provisions of paragraph 10 including any commercial vehicle irrespective of whether such motor vehicle is subsequent to the manufacture thereof 10 54 equipped, constructed or adapted for conveyance of persons, but excluding tractors, harvesting machinery, agricultural machinery and implements and irrigation machinery 10. Mechanically propelled road passenger motor vehicles 10 54 designed to seat not more than 15 persons, including motor-cycles and motor-tricycles

[Annexure A substituted by GN R956 of 1992.]

NOTICES

GNR.402 of 27 February 1981: Notice in terms of Section 2 – Determining Application of the Act

NOTE:—This notice was published in Government Notice R402 in Regulation Gazette 3147 of 27 February 1981 and amended by:

GN R2233

RG 3496 15/10/82 GN R2827

RG 3524 31/12/82

GN R946

RG 4206 5/5/88

GN R989

GG 13900 27/3/92

I, DAWID JACOBUS DE VILLIERS, Minister of Industries, Commerce and Tourism, in terms of section 2 of the Credit Agreements Act, 1980 (Act No. 75 of 1980), hereby prescribe as follows:

1. In this Notice any expression to which a meaning has been assigned in the Act shall have that meaning, and unless the context otherwise indicates—

“cash price” in relation to a credit agreement which is an instalment sale transaction, means the price at which goods are normally sold by the credit grantor on immediate payment of the full purchase price and includes a selling price referred to in the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968);

“the Act” means the Credit Agreements Act, 1980 (Act No. 75 of 1980).

2. The provisions of the Act shall apply to any—

(1) transaction referred to in paragraph (a) of the definition of “credit transaction” in section 1 of the Act, entered into in respect of any of the goods listed in Annexure A hereto;

leasing transaction in respect of any of the goods listed in Annexure A hereto; the duration of which exceeds six months from the date of the credit agreement concerned and the cash price of which does not exceed Five Hundred Thousand Rand.

3. The provisions of section 13 of the Act shall not apply to any person who is a party to any credit transaction or any leasing transaction to which the Act applies if such person initiated and concluded such transaction in writing entirely by means of the official state postal service of the Republic.

4. The provisions of the Act shall not apply to the following bodies:

The Economic Development Corporation of South Africa Limited.

The Qwaqwa Development Corporation Limited.

The Shangaan/Tsonga Development Corporation Limited.

The KwaZulu Development Corporation Limited.

Lebowa Development Corporation Limited.

5. The provisions of this notice shall come into operation on 2 March 1981.

6. Government Notice R2572 of 12 December 1980 is hereby repealed.

D J DE VILLIERS,

Minister of Industries, Commerce and Tourism. Annexure A

1. Household furniture, including garden furniture, lawnmowers, mattresses, floor carpets and floor rugs, irrespective of the material from which these articles are manufactured.

2. Electrical and non-electrical appliances for domestic use.

3. Television receivers, accessories and parts thereof but excluding closed circuit television equipment.

4. Radios and gramophones, sound recorders and reproducers, record players, laser disc players, tape and wire decks, loudspeakers, amplifiers and accessories for these articles.

5. Jewellery, including clocks and watches and part thereof.

6. Photographic and cinematographic cameras, enlargers, reducers and projectors, including accessories for these articles, but excluding equipment for cinemas and theatres, microfilm equipment and lithographic process cameras.

7. Video cassette recorders and players, video tape recorders and players, video cameras and decoders.

8. Electronic television games.

9. Mechanically propelled motor vehicles not subject to the provisions of item 10 including any commercial vehicle irrespective of whether such motor vehicle is subsequent to the manufacture thereof equipped, constructed or adapted for conveyance of persons, but excluding tractors, harvesting machinery, agricultural machinery and implements and irrigation machinery.

10. Mechanically propelled road passengers motor vehicles designed to seat not more than 15 persons, including motorcycles and motor-tricycles.

GNR.1252 of 12 June 1981: Notices of Exemption under Section 2 (2)

NOTE.—This notice was published in Government Notice No. R.1252 contained in Regulation Gazette No. 3208 of 12 June 1981.

I, DAWID JACOBUS DE VILLIERS, Minister of Industries, Commerce and Tourism, hereby exempt in terms of section 2 (2) of the Credit Agreements Act, 1980 (Act 75 of 1980), the bodies mentioned in the Schedule from the provisions of the said Act.

D. J. DE VILLIERS,

Minister of Industries, Commerce and Tourism SCHEDULE BODIES

1. The Ciskei National Development Corporation Limited.

2. The KaNgwane Economic Development Corporation Limited.

3. Lebowa Development Corporation Limited.

GNR.734 of 16 April 1982: Exemption from Sections of the Act

NOTE.—This notice was published in Government Notice No. R.734 contained in Regulation Gazette No. 3410 of 16 April 1982.

I, DAWID JACOBUS DE VILLIERS, Minister of Industries, Commerce and Tourism, hereby exempt in terms of section 2 (2) of the Credit Agreements Act, 1980 (Act 75 of 1980), the Small Business Development Corporation Limited from the provisions of sections 3 (1) (a), 3 (1) (b), 4 and 13 of the said Act.

Government Notice R.511 of 6 March 1981 is hereby withdrawn.

D. J. DE VILLIERS,

Minister of Industries, Commerce and Tourism

GNR.410 of 31 March 1999: Assignment of inspection functions

CREDIT AGREEMENTS ACT, 1980 (ACT 75 OF 1980)

I, Alexander Erwin, Minister of Trade and Industry, hereby under the powers vested in me in terms of section 2A of the Credit Agreements Act, 1980 (Act No. 75 of 1980) assign with effect from 1 April 1999 the power and the duty imposed upon the Director- General: Trade and Industry under section 26 of the Credit Agreements Act, 1980, to the competent authority within the jurisdiction of the government of the Eastern Cape Province, Northern Province, Mpumalanga and North West Province mentioned in section 103 (1) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), which authority shall be designated by the Premiers of the mentioned provinces.

A ERWIN

MINISTER OF TRADE AND INDUSTRY

GNR.1309 of 12 November 1999: Assignment of inspection functions CREDIT AGREEMENTS ACT, 1980 (ACT 75 OF 1980)

I, Alexander Erwin, Minister of Trade and Industry, hereby under the powers vested in me in terms of section 2A of the Credit Agreements Act, 1980 (Act No. 75 of 1980) assign with effect from 15 November 1999 the power and the duty imposed upon the Director-General: Trade and Industry under section 26 of the Credit Agreements Act, 1980, to the competent authority within the jurisdiction of the government of the Gauteng Province mentioned in section 103 (1) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), which authority shall be designated by the Premier of the mentioned province.

A ERWIN

MINISTER OF TRADE AND INDUSTRY

GN 282 of 29 March 2005: Assignment of inspection functions

CREDIT AGREEMENTS ACT, 1980 (ACT NO. 75 OF 1980)

I, Mandisi Mpahlwa, Minister of Trade and Industry, hereby under the powers vested in me in terms of section 2A of the Credit Agreements Act, 1980 (Act No. 75 of 1980) assign with effect from 1 April 2005 the powers and the duties imposed upon the Director-General: Trade and Industry under section 26 of the Credit Agreements Act, 1980, to the competent authority within the jurisdiction of the government of KwaZulu- Natal, Free State, Western Cape and Northern Cape province mentioned in section 103 (1) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), which authority shall be designated by the Premier of the mentioned province.

(Signed)

M MPAHLWA

Minister of Trade and Industry