Usury Act, 1968 (Act No. 73 of 1968)6C. Consequence of certain agreement relating to change of amount of instalments payable in terms of certain money lending transactions or credit transactions |
| (1) | Where the principal debt and finance charges owing by a borrower or a credit receiver in connection with a money lending transaction or a credit transaction, not secured by a mortgage bond over immovable property or a notarial bond over movable property, have, in terms of an agreement between himself and the moneylender or credit grantor concerned, to be paid in instalments, including finance charges, over a period in the future, and such moneylender or credit grantor and such borrower or credit receiver concluded an agreement in terms of which such principal debt and finance charges as from a stated date are to be paid by way of instalments greater or smaller than the instalments agreed upon at the conclusion of such money lending transaction or credit transaction, such money lending transaction or credit transaction shall be terminated as from such date and a new money lending transaction or credit transaction shall be concluded between such moneylender or credit grantor and such borrower or credit receiver as from such date in respect of the balance of such principal debt and finance charges thereon still unpaid on such date. |
| (2) | For the purposes of subsection (1) the balance of the principal debt and finance charges thereon which on the date on which the money lending transaction or credit transaction concerned is terminated in terms of that subsection, are still unpaid in respect of such transaction, shall be calculated in accordance with the provisions of section 6B(1) as if— |
| (a) | such balance and finance charges had been paid in one amount before the due date thereof and on the date on which such transaction was so terminated; |
| (b) | the date on which such transaction was so terminated, were the date, as contemplated in section 3A(1)(c), stated in a notice referred to in section 6B(1)(b). |
| (3) | A moneylender or credit grantor shall not recover finance charges in connection with a money lending transaction or a credit transaction concluded in terms of subsection (1) at an annual finance charge rate exceeding the maximum rate which on the date on which such transaction was concluded, could have been stipulated for, demanded or received in terms of section 2 in respect of such transaction. |
| (4) | Any insurance premiums, taxes and other fiscal charges, licence and other fees actually paid or payable by the moneylender or credit grantor concerned in respect of a money lending transaction or a credit transaction terminated under subsection (1), shall be deemed to have been paid or be payable in respect of a money lending transaction or a credit transaction concluded in terms of that subsection. |
| (5) | If a money lending transaction or a credit transaction is concluded in terms of subsection (1), the moneylender or the credit grantor shall be entitled to recover from the borrower or credit receiver the costs in respect of stamp duties, taxes and other fiscal charges actually paid or payable in connection with the execution of the instrument of debt in respect of such transaction. |
| (6) | Where the principal debt and finance charges owing by a borrower or a credit receiver in connection with a money lending transaction or a credit transaction, secured by a mortgage bond over immovable property or a notarial bond over movable property, have, in terms of an agreement between himself and the moneylender or credit grantor concerned, to be paid in instalments, including finance charges, over a period in the future, and such moneylender or credit grantor and such borrower or credit receiver concluded an agreement, which shall be in writing, in terms of which such principal debt and finance charges thereon are to be paid as from a stated date by way of instalments greater or smaller than the instalments agreed upon at the conclusion of such money lending transaction or credit transaction, the balance of the principal debt and finance charges thereon still unpaid on such date in respect of such transaction, shall be calculated in accordance with the provisions of section 6B(1) as if— |
| (a) | such balance and finance charges had been paid in one amount before the due date thereof and on such stated date; and |
| (b) | such stated date were the date, as contemplated in section 3A(1)(c), stated in a notice, as contemplated in section 3A(1)(a), given in accordance with a provision of the instrument of debt concerned. |
| (7) | An agreement concluded in terms of subsection (6) shall contain the following particulars, namely— |
| (a) | the aggregate amount of the principal debt and finance charges thereon, as calculated in terms of that subsection, still unpaid on the stated date referred to in that subsection; |
| (b) | the amount of the new principal debt and finance charges thereon which are to be paid in instalments over a period in the future; |
| (c) | the period over which the principal debt and finance charges thereon are to be paid; |
| (d) | the rate at which finance charges are to be calculated with effect from the stated date referred to in that subsection; |
| (e) | the date on which or the number of instalments in which the principal debt together with the finance charges must be paid, the amount of each instalment, and the due date of each instalment or the manner in which that date is determined. |
| (8) | The provisions of subsections (3), (4) and (5) shall apply mutatis mutandis in respect of an agreement concluded in terms of subsection (6). |