Question
summarise:
The National Credit Act also gives statutory acknowledgement to stokvels. Stokvels enjoy the protection of the Act when they borrow money from third parties, such as banks and micro-lenders. However, s 8(2)(c) (read with s 1) provides that the transactions concluded by a stokvel and one or more of its members in line with the stokvel’s rules are not deemed to constitute a credit agreement for purposes of the Act and such transactions are exempt from the provisions of the Act. [158] Section 8(2)(c) further provides that a loan between a stokvel and its member will be governed by the common-law in duplum rule.
The National Credit Act also gives statutory acknowledgement to stokvels. Stokvels enjoy the protection of the Act when they borrow money from third parties, such as banks and micro-lenders. However, s 8(2)(c) (read with s 1) provides that the transactions concluded by a stokvel and one or more of its members in line with the stokvel’s rules are not deemed to constitute a credit agreement for purposes of the Act and such transactions are exempt from the provisions of the Act. [158] Section 8(2)(c) further provides that a loan between a stokvel and its member will be governed by the common-law in duplum rule.
Answers
GPT-4o mini
The National Credit Act recognizes stokvels and protects them when borrowing from external parties like banks. However, transactions between a stokvel and its members, conducted according to the stokvel's rules, are not classified as credit agreements under the Act and are exempt from its regulations. Additionally, loans between a stokvel and its members follow the common-law duplum rule.