Private Bonds | 8 September 2015

Posted on: September 8th, 2015 by Niel Grundlingh

Often clients investigate the possibility of registering  a private bond for funds advanced to a third party. For example where a purchaser obtains a loan from a family member or source other than a bank for funds with which to purchase a property, the lender will want to secure the purchaser’s obligations to it by registration of a bond.

The National Credit Act lays down requirements that must be complied with where such a loan is at arm’s length and in excess of R500 000, including that the lender must register as credit provider with the National Credit Regulator, a process which takes between 6-8 weeks.

The private bond can be registered in the Deeds Office while the application to register as a credit provider is ongoing.

For further information, contact us at STBB for assistance or visit the National Credit Regulator website

Comments are closed.

STBB Meerkats

Subscribe to our Newsletters

Visit our subscription page to view the newsletters available. You can select any number of newsletters to subscribe to.

Subscribe

You have Successfully Subscribed!