The Government Notice discusses regulations that include a schedule with five paragraphs. Paragraph 1 defines several key terms, notably 'common bond,' which identifies the connection among members of various financial cooperatives, such as those linked by employment at a common employer, residing in the same community, or belonging to the same association. Additionally, paragraph 1(c) clarifies that stokvels are explicitly excluded from being classified as 'the business of a bank' and therefore do not need to register as a bank under the Banks Act.
summarise:The Government Notice that contains the regulation under discussion is accompanied by a schedule comprising five paragraphs. Paragraph 1 gives a number of word definitions, including a detailed definition of ‘common bond’. It provides, inter alia, that a ‘common bond’ exists between members of a financial co-operative, financial services co-operative, credit union or savings and credit co-operative, whose membership comprises persons who are employed by a common employer or who are employed within the same business district; or members who have common membership in an association including religious, social, co-operative, labour or educational groups; or members who reside within the same defined community. Paragraph 1(c) of the Notice specifically excludes stokvels from the definition of ‘the business of a bank’ and hence, from registration as a bank in terms of the Banks Act.
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