An application form used by an investor to invest in a collective investment scheme in participation bonds must disclose at least the following information, in addition to the information contemplated in section 3 of the Act, to the extent that the information is applicable to collective investment schemes in participation bonds:—
| (a) |
that money invested in the scheme must remain invested in such scheme for a period of not less than five years; |
| (b) |
that the participant's investment is secured by all the participation bonds included in the scheme and that the debt owing under such bonds is, to the extent of the participatory interest granted to such participant, a debt owing to such participant and not to the manager or the nominee company; |
| (c) |
that neither the manager nor the nominee company guarantees the repayment of the debt; |
| (d) |
that, upon the expiry of the five year period referred to in section 58 of the Act, the participant may withdraw his or her investment, subject to rule 22(2) and subject to the participant having given the manager written notice; |
| (e) |
the period of the written notice referred to in rule 22(2)(b), which period shall not be more than three months; |
| (f) |
that the participant may, within the five year period referred to in section 58 of the Act, transfer, cede or encumber his participatory interest, subject to rule 22(1); |
| (g) |
that the interest payable by the mortgagors under participation bonds may fluctuate during the terms of such bonds and that interest payable to the participant may fluctuate; |
| (h) |
that interest paid by mortgagors to the manager in terms of participation bonds, less the manager's administration fees, which must be determined by the manager from time to time, must be paid by the manager to the participants at intervals determined by the manager; |
| (i) |
that the manager must, at intervals of no more than three months, furnish each participant, in writing or by electronic means, with a statement of account disclosing the amount of capital owing to the participant and indicating how the net amount of interest paid has been calculated; |
| (j) |
such further information as the registrar may require. |
Older Persons Act, 2006
