Section 24 and 28 of the Firearm Control Act declared Unconstitutional. What does it mean?

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Section 24 of the Firearm Control Act, Act 60 of 2000 (hereinafter referred to as "the act") stipulates that a person whom seeks to renew a firearm license must do so within 90 days before the expiry date thereof.

Section 28 of the act stipulates that if a firearm license has been cancelled, the firearm must be disposed of or forfeited to the State.

The aforesaid sections were declared unconstitutional on 4 July 2017 by the Pretoria High Court. The Parliament was subsequently ordered to rectify the short comings in the act within a period of 18 months.

What it means for you in a nutshell:

If your license is about to expire, you need not to renew your license, as the section compelling you to do so, is declared unconstitutional.

The South African Police Service issued a media statement on 5 July 2017 confirming that they are studying the judgement. The SAPS will in the interim retain all firearms retained by the police. No further prosecutions will however be instituted against the parties concerned and no firearms will be destroyed during the transition period.

Please take note thereof that the judgement may be appealed against or interim directives may be issued. The position may vary subject to the development in this matter. We will however keep you informed as the matter progresses.

New Threshold For Registration As Credit Provider In Terms Of The National Credit Act

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Does it mean that all credit providers now have to register as Credit Providers regardless of the amount advanced?

Section 40(1) of the National Credit Act 34 of 2005 ("NCA") previously stated that a person or entity was required to register as a Credit Provider if:

(a) "that person, alone or in conjunction with any associated person, is the credit provider under at least 100 credit agreements, other than incidental credit agreements; or
(b) the total principal debt owed to that credit provider under all outstanding credit agreements, other than incidental credit agreements, exceeds the threshold prescribed in terms of section 42( 1)."

The threshold as enunciated in Section 40 of the NCA above, has now been amended by the new regulations to the NCA that was published on 11 May 2016. It follows that all Credit Providers, irrespective of the amount advanced or the number of credit agreements concluded, should be registered as a credit provider.

Looking on the bright side, this does not mean that all Credit Providers should register with the National Credit Regulator ("NCR"). The following categories of persons or entities are exempted:

Incidental Credit Agreements;
Where a person or entity is not a credit provider as defined in terms of the act;
The transaction is not a credit agreement as defined in the act;
If the credit agreement was not concluded or does not have effect within the Republic;
Agreements between persons who are not "at arms length";
Agreements where the consumer is a juristic person whose asset value or annual turnover at the time the agreement is made equals or exceeds R1000 000.00 or where the credit agreement is for an amount in excess of R250 000

Consequences of failure to register:

In the event where a credit agreement was concluded between a consumer and a Credit Provider who is not registered, but is required to register as such, the agreement will be void. The effect thereof is that the Credit provider will be unable to enforce the terms of the agreement and will furthermore not have a claim, based on the agreement.

It is therefore important for all persons or entities required to be registered as Credit Providers to do so

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