In a judgment delivered on 25 November 2024, the High Court of South Africa, Gauteng Local Division, Johannesburg declared a series of transactions involving Dimension Data Facilities (Pty) Ltd (Dimension Data Facilities) and Identity Property Co (Pty) Ltd (Identity PropCo) void and invalid. This case is poised to become a significant
The intersection of acts of insolvency and factual insolvency under the Banks Act
This blog was co-authored by Adrienne Hendricks, Candidate Attorney.
The Prudential Authority (the Authority) applied for provisional sequestration of the respondents’ joint estate under sections 83(3)(b) and 84(1A)(c) of the Banks Act (the Act).
The respondents participated in the Travel Ventures International Scheme for which they marketed significantly discounted travel vouchers for international travel and
National Credit Act: No summary judgment if section 127(4)(b) defence is reasonably raised re sale value of repossessed goods
This blog was co-authored by Hannah Howell, Candidate Attorney.
The High Court handed down a judgment on 7 October 2024 which spotlighted that an instalment sale credit provider under the National Credit Act (NCA) must prove that the repossessed goods have been sold at the best reasonably obtainable price and may not just get summary
Standard Bank of South Africa Ltd v Clulow: Enforceability of suretyship and role of Certificates of Balance
This blog post was co-authored by Adrienne Hendricks, Candidate Attorney.
In a September 2024 decision of the high court, a bank brought a claim based on two certificates of balance against a surety, who had bound himself as surety for all debts owed by the debtor under an overdraft facility agreement with the bank.
The
ABSA Bank v Rosenberg: Interpretation of contracts and the enforceability of guarantees in light of reciprocal obligations
This blog was co-authored with Adrienne Hendricks, Candidate Attorney.
In April 2024 the Supreme Court of Appeal (SCA) dismissed the bank’s appeal from the High Court, finding that the bank was not entitled to enforce a guarantee where the bank had failed to perform its own obligation to increase the facility under the original
Reliance on security in connection with an enrichment claim based on a void and unenforceable loan agreement
This blog was co-authored by Adrienne Hendricks, candidate attorney at Norton Rose Fulbright South Africa
In August 2024, the High Court held that a bank was entitled to enforce the suretyship and mortgage bond granted in its favour, for purposes of an enrichment claim which arose in connection with a void and unenforceable loan agreement.
JIBAR to ZARONIA- What is the Credit Adjustment Spread?
This blog was co-authored by Eric Geldenhuys, candidate attorney at Norton Rose Fulbright South Africa
The Credit Adjustment Spread (CAS) is a term which is used to calculate and to factor in the difference between JIBAR and ZARONIA. The CAS calculation is a structured as separate component of the interest rate calculation. The CAS is
JIBAR to ZARONIA- The Daily Non-Cumulative Compounded Rate vs the Daily Cumulative Compounded Rate
This blog was co-authored by Eric Geldenhuys, candidate attorney at Norton Rose Fulbright South Africa
The Daily Cumulative Compounded Rate (CCR) means the interest rate that is calculated at the end of the interest period. This single interest rate is applied for the whole interest period. The daily fluctuations are reduced over the calculation period
JIBAR to ZARONIA- Observation Period vs Observation Shift
This blog was co-authored by Eric Geldenhuys, candidate attorney at Norton Rose Fulbright South Africa
The Observation Period refers to the period for which the Interest Period which has been moved or shifted back in whole by 5 Business Days. We can observe the published daily ZARONIA rate which applies to any current Business Day
JIBAR to ZARONIA- Understanding the components of daily risk-free rate calculations in South Africa
This blog was co-authored by Eric Geldenhuys, candidate attorney at Norton Rose Fulbright South Africa
The proposed 2026 rate switch in South Africa from JIBAR to ZARONIA will have an impact on all cash transactions which previously applied JIBAR, as well as all JIBAR-linked transactions. ZARONIA is a daily risk free rate, unlike JIBAR which