Companies Act, 2008 (Act No. 71 of 2008)
R 385
Deeds Registries Act, 1937 (Act No. 47 of 1937)Chapter V : BondsGeneral Provisions51. Requirements in case of bonds intended to secure future debts |
| (1) | No mortgage bond or notarial bond attested or registered after the commencement of this Act shall be of any force or effect for the purpose of giving preference or priority in respect of any debt incurred after the registration of such bond, unless— |
| (a) | it is expressly stipulated in the bond that the bond is intended to secure future debts generally or some particular future debt described therein; and |
| (b) | a sum is fixed in the bond as an amount beyond which future debts shall not be secured by the bond. |
[Section 51(1) substituted by section 14 of Act No. 27 of 1982]
| (2) | If a mortgage bond or notarial bond purports to secure payment by the mortgagor of the costs of preserving and realising the security or of fire insurance premiums, cost of notice or bank exchange, such costs and charges shall not be deemed to be future debts within the meaning of subsection (1). |
[Section 51 substituted by section 19 of Act No. 87 of 1965]
