Financial Sector Regulation Act, 2017
R 385.00
National Credit Act, 2005 (Act No. 34 of 2005)Chapter 1 : Interpretation, Purpose and Application of ActPart C : Classification and categories of credit agreements10. Developmental credit agreements |
| (1) | A credit agreement, irrespective of its form, type or category, is a developmental credit agreement if— |
| (a) | at the time the agreement is entered into, the credit provider holds a supplementary registration certificate issued in terms of an application contemplated in section 41; and |
| (b) | the credit agreement is— |
| (i) | between a credit co-operative as credit provider, and a member of that credit co-operative as consumer, if profit is not the dominant purpose for entering into the agreement, and the principal debt under that agreement does not exceed the prescribed maximum amount; |
| (ii) | an educational loan; or |
| (iii) | entered into for any of the following purposes— |
| (aa) | development of a small business; |
| (bb) | the acquisition, rehabilitation, building or expansion of low income housing; or |
| (cc) | any other purpose prescribed in terms of subsection (2)(a). |
| (2) | The Minister may prescribe— |
| (a) | additional purposes, as contemplated in subsection (1)(b)(iii)(cc), that are designed to promote the socio-economic development and welfare of persons contemplated in section 13(a); |
| (b) | a maximum principal debt above which a credit agreement contemplated in subsection (1)(b)(i) does not automatically qualify as a developmental credit agreement; and |
| (c) | criteria and standards to be applied by the National Credit Regulator in considering whether a credit provider’s dominant purpose for making an agreement was profit or a purpose other than profit, including but not limited to the extent to which the credit agreement concerned contributes to the socio-economic development and welfare of persons contemplated in section 13(a). |
