Acts Online
GT Shield

Usury Act, 1968 (Act No. 73 of 1968)

5A. Recovery of certain moneys not permitted by section 5

 

 

Referenced by:

 

1) In addition to the amounts which a moneylender, credit grantor or lessor is entitled to obtain judgement for or recover under section 5, he may, under a mortgage on immovable property or on any right to such property, or under any subsequent written agreement under the mortgage, obtain judgement for or recover the followings amounts, namely--
a) any amount disbursed by the moneylender, credit grantor or lessor on behalf of the borrower, credit receiver or lessee in respect of--
i) the installation of sewerage on the property or the property to which the right is attached;
ii) the provision of electricity or water on the property or the property to which the right is attached;
iii) the cost incurred in converting such property from leasehold to freehold;
iv) the cost of the division of the property in accordance with a sectional plan in terms of the Sectional Titles Act, 1986 (Act No. 95 of 1986); and
v) rates, taxes and licence fees in respect of the property or right;
b) finance charges on any amount referred to in paragraph (a) at an annual finance charge rate not exceeding the rate at which finance charges are payable on the principal debt which is secured by the mortgage; and
c) legal costs incurred by the moneylender, credit grantor or lessor in respect of legal proceedings instituted against a borrower, credit receiver or lessee, and also against a mortgagor if the borrower, credit receiver or lessee is not the mortgagor, for the recovery of any amount or charges referred to in paragraph (a) or (b).

 

2) The provision of sections 5(2) and (3) and 6L shall mutatis mutandis apply to any amount recoverable in terms of subsection (1).

 

3) The provisions of subsections (1) and (2) shall also apply to a money lending transaction, credit transaction or leasing transaction already concluded at the commencement of the Usury Amendment Act, 1988.