Banks Act, 1990 (Act No. 94 of 1990)NoticesDesignation of an Activity not Falling within the meaning of "The Business of a Bank"Exemption Notice relating to Securitisation Schemes14. Issue of commercial paper |
| 1) | Conditions relating to the issue of commercial paper |
| a) | Notwithstanding anything to the contrary contained in the Commercial Paper Notice only for purposes of a traditional or synthetic securitisation scheme in accordance with the conditions specified in items (b) and (c) below. |
| b) | The commercial paper- |
| i) | shall be issued or transferred only in minimum denominations equal to or greater than an initial principal value of R1 million, unless the commercial paper is- |
| A) | listed on a licensed financial exchange; |
| B) | endorsed by a bank; |
| C) | issued for a period of longer than five years; or |
| D) | backed by an explicit national Government guarantee; |
| ii) | shall be issued only by a juristic person authorized in writing by the Registrar to issue commercial paper pursuant to a traditional or synthetic securitisation scheme, in accordance with the provisions of this Schedule and subject to such further conditions as the Registrar may determine in such written authorisation. |
| c) | A special-purpose institution issuing commercial paper pursuant to a traditional or synthetic securitisation scheme shall publish a disclosure document relating to the said issue of commercial paper, which disclosure document, as a minimum, shall contain the information prescribed in paragraph 16 of this Schedule. |