Section 19 Of The Credit Agreements Act 1980

Section 19 Of The Credit Agreements Act 1980

“The provisions of this Act apply to such credit contracts or categories of credit contracts, which the Minister may set from time to time through a communication to the Official Journal: unless the Minister has the authority to apply these provisions to credit contracts in which the Namibian Act 75 Act of 1980 (the Credit Agreements Act) has recently effected substantial amendments. The amendments to the Credit Agreement Amendment Act 3 of 2016 came into effect on August 1, 2016. The Credit Contracts Act regulates certain transactions in which personal property is leased or purchased on credit or certain services are provided on credit and sets limits on the amount of deposit payable and the duration of the repayment period for selected leasing or credit transactions. The amendable law was passed to achieve a general reduction in the credit transactions of ordinary Nibibian citizens, many of whom live beyond their financial means and thus go into debt with credit contracts. It aims to: (i) change the definition of “rental”; (ii) law enforcement; and (iii) possible penalties to be applied in the event of an infringement. The Credit Contracts Act regulates certain transactions in which personal property is leased or purchased on credit or certain services are provided on credit and sets limits on the amount of deposit payable and the duration of the repayment period for selected leasing or credit transactions. The application of the Credit Contracts Act under Section 2, paragraph 1, point a), has been amended as follows: the offences and penalties under section 23 of the Act have been amended as follows: in the past, the provisions of the Credit Contracts Act did not include agreements on certain economic branches , namely mining, mechanical engineering, construction, road construction or manufacturing. Under the amending act, the law does not apply to credit contracts related to commercial activities. Although the scope and meaning of the concept of “activity” are not defined in the legislation, we believe, given their normal daily importance, that the law will only apply to leasing contracts or the purchase of personal assets (i.e. non-commercial activities).

The Namibia Credit Agreements Act 75 of 1980 (Credit Agreements Act) has recently been significantly amended. The amendments to the Credit Agreement Amendment Act 3 of 2016 came into effect on August 1, 2016. Whereas the Credit Contracts Act previously excluded agreements in which the debtor became the owner of the property or re-established the ownership or use of the goods of the definition of “rental-sale,” the amending law explicitly included these types of credit contracts in the definition.

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