"administration fee"
means an amount payable by the borrower to the moneylender--
| (a) | where such amount is in terms of an agreement in writing between the moneylender and the borrower recoverable from the borrower; |
| (b) | as valuable consideration for the moneylender's administering the borrower's account; and |
| (c) | where the total amount payable per month does not exceed the amount mentioned in paragraph 3(b)(i); |
"initiation fee"
means a single fee not greater than the amount mentioned in paragraph 3(b)(ii) payable by the borrower to the moneylender —
| (a) | in terms of an agreement in writing between the moneylender and the borrower; |
| (b) | as valuable consideration for services rendered in connection with the registration of the mortgage bond in question; and |
"loan guarantee policy"
means a guarantee policy as defined in section 1 of the Insurance Act, 1943 (Act No. 27 of 1943), by virtue of which a moneylender is insured against any financial loss which could be suffered by him in connection with a housing loan secured by a mortgage bond over immovable property, where the loss is suffered by the moneylender pursuant to the moneylender's being unable at a sale of such property—
| (a) | in execution, whether such sale is held at the instance of the moneylender or any other person; or |
| (b) | by public auction held by virtue of the insolvency of the borrower, |
to recover any amount owed to him by the borrower in connection with the housing loan;
"loan guarantee premium"
means a premium actually paid or to be paid by a moneylender in respect of a loan guarantee policy to an insurer registered in terms of the Insurance Act, 1943, including an underwriter at Lloyds authorized in terms of the said Act to carry on insurance business in the Republic, where such amount is—
| (a) | in terms of an agreement in writing between the moneylender and the borrower recoverable from the borrower; |
| (b) | payable to the insurer for insurance cover not exceeding five years at a time; |
| (c) | actually paid or to be paid by the moneylender to the insurer upon or within 60 days after the date on which— |
| (i) | in the case of the initial premium, the relevant mortgage bond is registered in the Deeds Registry; or |
| (ii) | in the case of any subsequent premium, a term referred to in paragraph (b) has lapsed; and |
"security variation fee"
means a fee payable by the borrower to a moneylender—
| (a) | in terms of an agreement in writing between the moneylender and the borrower; |
| (b) | as valuable consideration for the moneylender's consenting to any request by the borrower in respect of— |
| (i) | a variation of the terms of the mortgage bond in question; |
| (ii) | a delegation of the obligations of the borrower in terms of the money lending transaction in question; or |
| (iii) | a variation or substitution of a deed of suretyship or other collateral security in connection with the money lending transaction in question; and |
| (c) | where the amount in respect of each such request does not exceed the amount mentioned in paragraph 3(b)(iii). |
| (2) | Subject to the conditions mentioned in paragraph 3, the following amounts may in respect of a housing loan be recovered, by obtaining judgment or otherwise, from a borrower: |
| (3) | The provisions of paragraph 2 shall apply on condition that— |
| (a) | the amounts contemplated in paragraph 2 be set out separately and distinctly in every instrument of debt in accordance with the manner contemplated in section 3(1); |
| (i) | administration fees shall not exceed R5,00 per month; |
| (ii) | an initiation fee shall not exceed R175,00; |
| (iii) | a security variation fee shall not exceed R100,00 per request; and |
| (c) | a moneylender in connection with a housing loan shall not stipulate for, demand or receive finance charges at an annual finance charge rate greater than three percentage points below the annual finance charge rate concerned determined by the Registrar in respect of money lending transactions generally under section 2(1) of this Act. |
