What are the currently thresholds dealt with in Section 7(1)?
What are the currently thresholds dealt with in Section 7(1)?
Threshold required in terms of section 7(1)(a)
The threshold required to be determined in terms of section 7(1)(a) of the Act is R1 000 000.00.
Threshold requirement in terms of section 7(1)(b)
(1) The lower threshold required to be determined in terms of section 7(1)(b) of the Act is R15 000.00.
(2) The higher threshold required to be determined in terms of section 7(1)(b) of the Act is R250 000.00.
Threshold required in terms of section 10(1)
The threshold required to be determined in terms of section 10 (1)(b)(i) of the Act is RI5 000.00.
Threshold required in terms of section 42(1)
The threshold required to be determined in terms of section 42(1) of the Act is R500 000.00.
GG : NOTICE 713 OF 2006
Last edited by duncan drennan; 24-Aug-07 at 11:49 AM. Reason: www.info.gov.za/gazette/notices/2006/28893.pdf
When you look at these two clauses, it almost seems like there is a typo.
4. (1) (a) (i) a juristic person whose asset value or annual turnover, together with the combined asset value or annual turnover of all related juristic persons, at the time the agreement is made, equals or exceeds the threshold value determined by the Minister in terms of section 7(1);
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4. (1) (b) a large agreement, as described in section 9(4), in terms of which the consumer is a juristic person whose asset value or annual turnover is, at the time the agreement is made, below the threshold value determined by the Minister in terms of section 7(1);
I agree Duncan and cannot understand the rationale behind it (apart from being a loophole). I will see if I can source some research papers done prior to the Act being introduced to see if one can understand why this provision was put in.
Maybe it actually makes a lot of sense in that it empowers actual companies (i.e. people actually trying to carry on a trade) to purchase property. Think about a small startup that needs to invest in capital and premises. They have nothing (except debt) to begin with. The NCA could potentially stunt business growth if applied to this situation. The government (maybe?) has effectively said that a company can live or die by its own sword in this regard.
I hear you, but as the whole NCA is written in favour of the consumer, I find it strange that the small company may well fall outside the ambit of the NCA and forfeit some of the protections i.e. reckless credit, over-indebted reviews etc.
BTW: I see the website http://www.townhousewarehouse.co.za/ is back online.
Guys
I have found in my experience that the banks at present do not evaluate legal entities under the NCA REQUIREMENTS.
Purely by luck I might ad.
I am having a large exposure problem with one specific bank, they have declined my last two applications purely on affordability
When I made the application in the name of a trust it flew through....even faster than normal.
This was not an isolated case I paid special attention to other applications and found the same result.
Maybe this has opened up a whole new avenue for property investors.
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