(1)
All monies received by the Fund shall be deposited in a banking account opened in the name of the Fund. Withdrawals from the Fund shall be by signed cheque or electronic transfer by such persons as may, from time to time, be authorised by the Management Committee.
| (i) | A Risk Reserve Account shall be maintained under the Fund, to which shall be credited— |
| (aa) | the amount required to be credited in terms of clause 6 (2) (a) (ii); |
| (bb) | any payment made to the Fund by an underwriter; and |
| (cc) | a portion of the amount (if applicable) required to be credited in terms of clause 10 (5). |
| (ii) | The amount standing to the credit of the Risk Reserve Account shall be increased or decreased by such proportionate share of the returns earned by the Fund as the amount in the Risk Reserve Account bears to the sum of all amounts standing to the credit of the Fund; |
| (iii) | The amount standing to the credit of the Risk Reserve Account shall be used— |
| (aa) | to meet the cost of the premiums in respect of the Group Life Assurance Policy, the Group Disability Policy and the Group Funeral Policy; and |
| (bb) | to pay benefits to members or, if applicable; their beneficiaries in the event of their death or disablement in terms of this Agreement; |
| (b) | Investment Reserve Account |
| (i) | An Investment Reserve Account shall be maintained under the Fund, to which shall be credited— |
| (aa) | a portion of the amount (if applicable) required to be credited in terms of clause 10 (5); and |
| (bb) | that part (if any) of the employer"s account in respect of a member to which a member is not entitled on leaving service; and |
| (cc) | a portion of the amount standing to the credit of the Fund excluding the withdrawal benefits of members and unclaimed withdrawal benefits of inactive members of the Fund, which amount shall be agreed by the Management Committee. |
| (ii) | The amount standing to the credit of the Investment Reserve Account shall be increased or decreased by such proportionate share of the return earned by the Fund as the amount in the Investment Reserve Account bears to the sum of all amounts standing to the credit of the Fund. |
| (iii) | The amount standing to the credit of the Investment Reserve Account shall be used— |
| (aa) | at the discretion of the Management Committee, to increase benefits payable by the Fund; |
| (bb) | with specific reference to the amount mentioned in subclause (b) (i) (aa) above, to stabilise the returns of the Fund; |
| (cc) | to meet all or part of the expenses of the Fund for the month concerned; |
| (dd) | to meet all or part of the contributions due by an employer in terms of clause 6 (2) (a) (i), with specific reference to the amount mentioned in subclause (1) (B) (b) (i) (cc) above. |
| (2) | Monies surplus to the Fund"s requirements and those of its expenses shall be invested in— |
| (a) | savings accounts, permanent shares or fixed deposits in any registered bank or financial institution; |
| (b) | a registered unit trust; |
| (c) | internal registered stock as contemplated in section 21 of the Exchequer Act, 1975; |
| (d) | first mortgages and housing loans, by way of investment, to individual members, to enable the member— |
| (i) | to redeem a loan granted to the member by a person other than the fund, against security of immovable property which belongs to the member or his or her spouse and on which a dwelling has been or will be erected which is occupied or as the case may be will be occupied by the member or a dependant of the member; |
| (ii) | to purchase a dwelling or to purchase land and erect a dwelling on it, for occupation by the member or a dependant of the member; |
| (iii) | to make additions or alterations to or to maintain or repair a dwelling which belongs to the member or his or her spouse and which is occupied or will be occupied by the member or a dependant of the member [such loans will be subject to the terms and conditions as set out in clause 11 (1) of this agreement]; |
| (e) | any other manner approved by the Registrar of Labour Relations. |
| (3) | The Management Committee, may by resolution at a duly constituted meeting of the Committee, authorise the use of all or part of any interest earned and capital appreciation achieved in terms of subclause (2) of this clause for the purpose of clause 10: Provided that the amount of the interest and capital appreciation so authorised would in no period of 6 (six) months ending 30 June or 31 December, respectively, exceed the amount in interest actually received and capital appreciation actually achieved (whether realised or not) by the fund during such periods, less the administration expenses of the Fund for the period in question. |
(4)
| (a) | The Management Committee shall appoint an auditor who shall be registered to practice in the Republic of South Africa as a public accountant and auditor whose remuneration shall a paid out of the Fund. |
| (b) | The auditor appointed by the Management Committee shall conduct an annual audit of the books and records of account and financial statements of the Fund in accordance with generally accepted auditing standards and shall report in writing to the Management Committee. |
| (5) | The Management Committee shall cause full and true accounts of the Fund to be kept in accordance with the standards of generally accepted accounting practice, principles and procedures and shall cause monthly Management accounts to be prepared. |
| (6) | Each year for the period ending on 31 December the Management Committee shall cause to be prepared an account of all revenue and expenditure of the Fund and a statement showing its assets and liabilities. Every such account and statement shall be certified by the auditor of the Fund, and countersigned by the chairman of the Provident Fund Management committee and shall within three months of the close of the period to which it relates be transmitted to the Registrar of Labour Relations, together with the report made thereon by the said auditor. A copy of the annual accounts and balance sheet shall be available for inspection by the members of the Fund and shall be submitted to a meeting of the Council together with the auditor"s report. |
| (7) | All expenses of administration shall be a charge against the Fund. |
| (8) | The Management Committee shall appoint an Actuary whose remuneration shall be paid out of the Fund. |
(9)
| (a) | The Management Committee shall be empowered to issue guarantees to a third party in respect of a housing loan to any member of the fund and to invest and pledge funds as provided for herein to such third party as provided for herein, where such loan facility has been arranged by the Management Committee for the benefit of the members of the fund. |
| (b) | The purpose of such guarantees shall be to enable members to obtain finance from a third party, so as to enable the member— |
| (i) | to redeem a loan granted to the member by another party, against security of immovable property which belongs to the member or his or her spouse and on which a dwelling has been or will be erected which is occupied, or, as the case may be, will be occupied by the member or a dependant of the member; |
| (ii) | to purchase a dwelling or to purchase land and erect a dwelling on it, for occupation by the member or a dependant of the member; |
| (iii) | to make additions or alterations to or to maintain or repair a dwelling which belongs to the member or his or her spouse and which is occupied or will be occupied by the member or a dependant of the member. |
| (c) | The entitlement of members to such loan facilities in terms of subclause (a) shall be in terms of subclause 11 (1) (b) of this agreement. |
