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Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)

Part VI : Collective Investment Schemes in Participation Bonds

52. Definitions

 

(1) In this Part, unless the context indicates otherwise—

 

"collective investment scheme in participation bonds"

means a scheme of which the portfolio, subject to the provisions of this Act, consists mainly of assets in the form of participation bonds, and in pursuance of which members of the public are invited or permitted to acquire a participatory interest in all the participation bonds included in the scheme:

 

"nominee company"

means a nominee company which has been approved by the registrar and which—

(a) has as its principal object to act as nominee for or representative of any person in the holding of any property in trust for such person;
(b) is precluded by its memorandum of association from incurring any liabilities except for those persons on whose behalf it holds property to the extent of their respective rights to and interests in such property;
(c) has entered into an irrevocable agreement with the manager in terms of which such manager has undertaken to pay all the expenses of and incidental to its formation, operations, management and liquidation, and has appointed directors responsible for the management and control of the nominee company of whom more than 50 per cent are independent from the manager or its holding company or subsidiary of such holding company or fellow subsidiary of such manager;

 

"participant"

means a person who holds a participatory interest in all the Participation bonds included in a collective investment scheme in participation bonds;

 

"participation bond"

means a mortgage bond over immovable property—

(a) which is described as a participation bond and is registered as such in the name of a nominee company and is included in a collective investment scheme in participation bonds; and
(b) which is a first mortgage bond or which ranks equally with another first participation bond and has the same mortgagor;

 

"principal debt"

means the cash amount in money actually received by or on behalf of the mortgagor in terms of the money-lending transaction secured by a participation bond; and

 

"rules"

means the rules referred to in subsection (2).

 

(2) The registrar may, for the purposes of this Part, make rules which are consistent with this Act for the administration of a collective investment scheme in participation bonds.

 

(3) Such rules do not have the force of law until published by notice in the Gazette.