Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to BanksChapter VII : Definitions and General Provisions68. Borrowing of money by co-operatives |
| (1) | For the purposes of paragraph (bb) of the definition of "the business of a bank" in section 1(1) of the Act, a co-operative may borrow money from its members subject to the conditions specified below: |
| (a) | No loan from any individual member shall amount to less than R1 000, and, for the purposes of this paragraph, every successive loan from any particular member shall be regarded as a separate loan; |
| (b) | a loan shall not be repaid within 12 months after receipt; |
| (c) | the co-operative shall in respect of each loan issue an acknowledgement of debt; |
| (d) | every loan shall be negotiated on one or other of the conditions specified below, which conditions shall be recorded in the relevant acknowledgement of debt. |
| (i) | The member shall not have the right to demand repayment, but the co-operative may at any time, after it has held the loan for not less than 12 months, repay such loan upon giving not less than 30 days' prior notice of its intention to repay such loan; or |
| (ii) | The loan shall be repayable at a fixed date to be specified in the acknowledgement of debt, but the board of directors of the co-operative shall have the power to defer the repayment if the circumstances of the co-operative as at that date render such deferment necessary, subject to the condition that if the decision of such board is not confirmed at the first succeeding general meeting of the co-operative, the loan shall be repaid within seven days of the date of such meeting. |