Post and Telecommunication-related Matters Act, 1958 (Act No. 44 of 1958)Chapter II : Finance12U. Loans to postal company and telecommunications company |
| (1) | The State shall be deemed with effect from the postal transfer date, to have lent and advanced to the postal company the amounts which the State owes in terms of excluded commitments entered into by the Director-General in terms of this Act and which pertain to or are connected with the conduct of the postal service by the department. |
| (2) | The State shall be deemed with effect from the telecommunications transfer date to have lent and advanced to the telecommunications company the amounts which the State owes in terms of excluded commitments entered into by the Director-General in terms of this Act and which pertain to or are connected with the conduct of the telecommunications service by the department. |
| (3) | The amounts owing to the State by the postal company and the telecommunications company, respectively, in terms of the excluded commitments contemplated in subsections (1) and (2), shall bear interest at the rate at which, and shall be repaid to the State within the period for which, the department borrowed the money in terms of the agreement concerned. |
| (4) | For the purposes of the transfer by the department to the postal company and the telecommunications company of the loans made to the department by the State in terms of the Exchequer Act, 1975 (Act No. 66 of 1975)— |
| (a) | the amount described in section 28 of the Exchequer Act, 1975, as permanent capital, shall notwithstanding the provisions of the said section be deemed to be a loan made by the State to the department which shall be converted on the transfer date concerned into ordinary shares held by the State in the successor company concerned: Provided that the nominal value and any premium payable in respect of the shares so issued shall be determined by the Minister with the concurrence of the Minister of Finance and shall in the aggregate be equal to the total amount of the permanent capital; |
| (b) | the department shall to the extent of such transfer be released from any debt or obligation to the State in respect of such loans. |
| (5) | [Subsection (5) deleted by section 9 of Act No. 101 of 1992] |
| (6) | The Minister shall deal with the excluded commitments with the concurrence of the Minister of Finance. |
[Section 12U inserted by section 9 of Act No. 85 of 1991]