Financial Services Board Act, 1990
R 385
Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesRules for the administration of a collective investment scheme in participation bonds4. Maximum amount of bond |
| (1) | If a bond is a reducible mortgage bond then, subject to rule 5, no more than seventy-five percent of the value of the immovable property mortgaged or to be mortgaged under a participation bond, determined in terms of rule 2(b), may be advanced by the manager upon the security of such bond. |
| (2) | If a bond is a non-reducible mortgage bond then, subject to rule 5, no more than sixty seven percent of the value of the immovable property mortgaged or to be mortgaged under a participation bond, determined in terms of rule 2(b), may be advanced by the manager upon the security of such bond. |
| (3) | If there is a pari passu ranking charge over the immovable property mortgaged or to be mortgaged under such participation bond, the maximum amounts which may be advanced by the manager as aforesaid, must be reduced by the maximum possible indebtedness secured under the pari passu ranking charge. |
