| (a) | shall not effect any transaction as an undisclosed principal or in any other manner otherwise than in its own name; |
| (b) | shall hold all its assets in its own name, excluding any asset— |
| (i) | bona fide hypothecated to secure an actual or potential liability; |
| (ii) | in respect of which the Registrar has approved in writing that it may be held in the name of another person; or |
| (iii) | falling within a category of assets designated by the Registrar by notice in the Gazette as a category of assets which may be held in the name of another person; |
| (c) | shall not show in its annual financial statements contemplated in section 43 or in any return referred to in section 53(1)(b) as an asset any amount representing the cost of organization or extension or the purchase of a business or a loss (including a loss originating from the sale of an asset) or bad debts; |
| (d) | shall not before provision has been made out of profits for the items referred to in paragraph (c)— |
| (i) | open any branch or agency or any further branch or agency; or |
| (ii) | pay out dividends on its shares; |
| (e) | shall not, for the purpose of effecting a money lending transaction directly between a lender and a borrower, perform any act in the capacity of an agent except where the funds to be lent in terms of the money lending transaction are entrusted by the lender to the mutual bank subject to a written contract of agency in which, in addition to any other terms thereof, at least the following matters shall be recorded: |
| (i) | confirmation by the lender that the mutual bank acts as his agent; |
| (ii) | that the lender assumes, except in so far as he or she may in law have a right of recovery against the mutual bank, all risks connected with the placing by the mutual bank of the funds entrusted to it by the lender, as well as the responsibility to ensure that the mutual bank executes the lender’s instructions as recorded in the written contract ; and |
| (iii) | that no express or implied guarantee regarding the payment of any amount of money owing by one person to another in pursuance of the relevant money lending transaction is furnished by the mutual bank; |
| (f) | shall not in its accounting records record any asset at a value increased by the amount of a loss incurred upon the realization of another asset; |
| (g) | shall not conclude a repurchase agreement in respect of a fictitious asset or an asset created by means of a simulated transaction; and |
| (h) | shall not purport to have concluded a repurchase agreement without— |
| (i) | such agreement being substantiated by a written document signed by the other party thereto; and |
| (ii) | the details of such agreement being recorded in the accounts of the mutual bank as well as in the accounts, if any, kept by the mutual bank in the name of such other party. |
| (a) | in writing notify a mutual bank that a practice employed by that mutual bank and specified in the notice constitutes an undesirable practice for that mutual bank; or |
| (b) | by notice in the Gazette declare a practice specified in the notice to be an undesirable practice for mutual banks specified in the notice or for all mutual banks, |
and a mutual bank that, after the expiry of a period of 21 days as from the date of a notice received by it by virtue of paragraph (a) or applicable to it in terms of paragraph (b), employs a practice that constitutes an undesirable practice for it by virtue of such a notice, shall be guilty of an offence.
| (3) | A mutual bank shall, upon receipt from the Registrar of a written request to that effect, discontinue the publication or issue of any advertisement, brochure, prospectus or similar document, specified in the request, that contains information which is not a correct statement of fact, or the publication or issue of which is, in the opinion of the Registrar, not in the public interest. |
