Higher Education Act, 1997 (Act No. 101 of 1997)RegulationsRegulations for the Registration of Private Higher Education Institutions, 2016Chapter 3 : Requirements for Registration12. Finance |
| (1) | In the application contemplated in regulations 3, 4 and 5, an applicant must submit evidence of its financial viability in the form of— |
| ( a) | an original or certified copy of its most recent audited annual financial statements audited by an independent auditor registered with the Independent Regulatory Board for Auditors (IRBA); |
| (b) | an original or certified copy of a three-year financial forecast audited by an independent auditor registered with IRBA if the applicant has not previously operated in any form whatsoever; and |
| (c) | proof that it has established a financial surety or guarantee to ensure that it meets its obligations to the number of students it has projected to enrol. |
| (2) | The financial surety or guarantee referred to in subregulation 12(1)(c) must be obtained from a financial services institution that is registered in terms of the Banks Act, 1990 (Act No. 94 of 1990) or an institution that is registered in terms of the Short-term Insurance Act, 1998 (Act No. 53 of 1998) and must indicate the following:— |
| (a) | the official letterhead of the bank or insurance company ("the Surety"); |
| (b) | the official name of the applicant ("identity of the Principal Debtor"); |
| (c) | the students as beneficiaries ("identity of Creditor"); |
| (d) | the main responsibility of the Principal Debtor to the Creditor ("the Principal Obligation"); |
| (e) | the amount of money covering the reimbursement of students based on projected income from student fees; |
| (f) | the terms and conditions of the agreement; |
| (g) | a signature of a representative of the applicant; |
| (h) | a signature of a representative of the bank or insurance company; and |
| (i) | the signatures of at least two witnesses. |
| (3) | The registrar may request any additional relevant financial information. |