Lpl4801 Assignment 1 (Complete Answers) Semester 1 2024 (569476) Due March 2024 Latest Update

Lpl4801 Assignment 1 (Complete Answers) Semester 1 2024 (569476) Due March 2024 Latest Update Written by I STUDY Lpl4804 Assignment 1 Semester 1 2024 Detailed Solutions, References & Bibliography Unique Number: 569476 Due Date: 15th March 2024 QUESTION 1 a. (2 ANSWERS PROVIDED) The National Credit Act 34 of 20051 applies to all credit agreements. Section 8 of the NCA provides that an agreement will be a credit agreement for the purposes of the NCA, if two elements are present, namely: • some deferral of repayment or prepayment, and • there is a fee, charge, or interest imposed with respect to a deferred payment, or a discount given when prepayments are made. QUESTION 1 a. (2 ANSWERS PROVIDED) The National Credit Act 34 of 20051 applies to all credit agreements. Section 8 of the NCA provides that an agreement will be a credit agreement for the purposes of the NCA, if two elements are present, namely: • some deferral of repayment or prepayment, and • there is a fee, charge, or interest imposed with respect to a deferred payment, or a discount given when prepayments are made. If these two elements are present agreement qualifies to be a “credit agreement” in terms of the NCA. Section 4 of the NCA provides that the Act applies to every “credit agreement” between parties who deal “at arm’s length” which is made within, or has an effect in South Africa, unless an exception applies. “Credit agreement” is defined in section 8 of the NCA to include: a credit facility, credit transaction, a credit guarantee or any combination of them. Furthermore, in terms of section 9 of the NCA a credit agreement can be small, medium or large, depending on the thresholds determined by regulation and the type of agreement involved: (a) A “small agreement” is any credit facility or credit transaction where the credit limit or principal debt falls at or below R15 000 and all pawn transactions, irrespective of the amount involved.