Usury Act, 1968 (Act No. 73 of 1968)Usury Act, 1968 (Act No. 73 of 1968)6F. Termination of leasing transactions before expiry of lease |
| (1) | Where a leasing transaction is terminated in terms of section 6E before the expiry of the lease agreed upon at the time of the conclusion of such transaction, such transaction shall be deemed to be a transaction in respect of which payment of the principal debt and of finance charges thereon is to be made in a manner other than by way of regular payments, and the lessor shall not in respect of such transaction demand, receive or recover from the lessee a sum of money which in the aggregate exceeds the difference between— |
| (a) | the aggregate amount of the principal debt still unpaid on the date on which such transaction is terminated and of finance charges owing thereon, which finance charges shall, as from the date on which such transaction was concluded to the date on which it is terminated, be calculated in accordance with the provisions of section 2(5) at the annual finance charge rate disclosed in the instrument of debt executed in connection with such transaction; and |
| (b) | the money value of the movable property leased in terms of the transaction concerned, on the date on which such transaction was terminated, as determined by the lessor in terms of section 6K(1) and (2). |
| 1) | For the purposes of subsection (1) the principal debt on the date on which the transaction concerned was terminated, shall be calculated as follows, namely— |
| (a) | the amount of the principal debt stated in the instrument of debt executed in connection with such transaction; plus |
| (b) | the present value of the book value of the movable property leased in terms of such transaction as calculated by the lessor in determining the amount of the principal debt stated in the instrument of debt executed in connection with such transaction; less |
| (c) | the total amount, excluding finance charges, paid since the conclusion of such transaction by the lessee to the lessor. |