Eskom Conversion Act, 2001 (Act No. 13 of 2001)7. Borrowings secured by Eskom's revenue and assets |
| 1) | All borrowings effected by Eskom and any interest or other costs due or to become due in respect thereof must, unless otherwise agreed between Eskom and the lender, be a first charge against all revenues and assets of Eskom and on all moneys recovered or to be recovered by it. |
| 2) |
| a) | If any interest due in respect of any securities remains unpaid for three months after demand therefor in writing has been lodged with Eskom, the holder thereof may apply to a high court having jurisdiction for the appointment of a receiver of the revenues and assets referred to in subsection (1). |
| b) | The court may- |
| i) | make such order and give such directions as in the circumstances it may deem necessary for the raising and payment of the moneys due; and |
| ii) | in particular, order that any prices for electricity supplied or to be supplied be increased to meet the deficit, and for that purpose the receiver referred to in paragraph (a) must exercise all such powers as Eskom might have exercised under the Eskom Act in respect of amending its prices for electricity, and the exercise of such powers does not require the sanction of any authority. |
| 3) | If such default in payment of interest in whole or in part continues for a further period of three months, the holder of the securities may apply to a high court having jurisdiction for a declaration that the outstanding principal sum for the time being has become due, and the court may make such declaration, together with any consequential order or declaration. |
| 4) | In the event of default in payment of the principal sum of any security for one month after the date on which it is repayable, the provisions of subsections (2) and (3) apply with the necessary changes. |