National Credit Act, 2005 (Act No. 34 of 2005)Chapter 1 : Interpretation, Purpose and Application of ActPart C : Classification and categories of credit agreements8. Credit agreements |
| (1) | Subject to subsection (2), an agreement constitutes a credit agreement for the purposes of this Act if it is— |
| (a) | a credit facility, as described in subsection (3); |
| (b) | a credit transaction, as described in subsection (4); |
| (c) | a credit guarantee, as described in subsection (5); or |
| (d) | any combination of the above. |
| (2) | An agreement, irrespective of its form, is not a credit agreement if it is— |
| (a) | a policy of insurance or credit extended by an insurer solely to maintain the payment of premiums on a policy of insurance; |
| (b) | a lease of immovable property; or |
| (c) | a transaction between a stokvel and a member of that stokvel in accordance with the rules of that stokvel. |
| (3) | An agreement, irrespective of its form but not including an agreement contemplated in subsection (2) or section 4(6)(b), constitutes a credit facility if, in terms of that agreement— |
| (a) | a credit provider undertakes— |
| (i) | to supply goods or services or to pay an amount or amounts, as determined by the consumer from time to time, to the consumer or on behalf of, or at the direction of, the consumer; and |
| (ii) | either to— |
| (aa) | defer the consumer’s obligation to pay any part of the cost of goods or services, or to repay to the credit provider any part of an amount contemplated in subparagraph (i); or |
| (bb) | bill the consumer periodically for any part of the cost of goods or services, or any part of an amount, contemplated in subparagraph (i); and |
| (b) | any charge, fee or interest is payable to the credit provider in respect of— |
| (i) | any amount deferred as contemplated in paragraph (a)(ii)(aa); or |
| (ii) | any amount billed as contemplated in paragraph (a)(ii)(bb) and not paid within the time provided in the agreement. |
| (4) | An agreement, irrespective of its form but not including an agreement contemplated in subsection (2), constitutes a credit transaction if it is— |
| (a) | a pawn transaction or discount transaction; |
| (b) | an incidental credit agreement, subject to section 5(2); |
| (c) | an instalment agreement; |
| (d) | a mortgage agreement or secured loan; |
| (e) | a lease; or |
| (f) | any other agreement, other than a credit facility or credit guarantee, in terms of which payment of an amount owed by one person to another is deferred, and any charge, fee or interest is payable to the credit provider in respect of— |
| (i) | the agreement; or |
| (ii) | the amount that has been deferred. |
| (5) | An agreement, irrespective of its form but not including an agreement contemplated in subsection (2), constitutes a credit guarantee if, in terms of that agreement, a person undertakes or promises to satisfy upon demand any obligation of another consumer in terms of a credit facility or a credit transaction to which this Act applies. |
| (6) | If, as contemplated in subsection (1)(d), a particular credit agreement constitutes both a credit facility as described in subsection (3) and a credit transaction in terms of subsection (4)(d)— |
| (a) | subject to paragraph (b), that agreement is equally subject to any provision of this Act that applies specifically or exclusively to either— |
| (i) | credit facilities; or |
| (ii) | mortgage agreements or secured loans, as the case may be, and |
| (b) | for the purpose of applying— |
| (i) | section 108, that agreement must be regarded as a credit facility; or |
| (ii) | section 4(1)(b) read with section 9(4), that agreement must be regarded as a large agreement if it is a mortgage agreement. |