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.
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.
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