LML4807 – BANKING LAW AND USAGE

SEMESTER 1 (2024)

ASSIGNMENT 02 (10 MARKS)

Carefully read the factual scenario below and answer the questions that follow with
reference to the National Credit Act 34 of 2005:

Janeene is a newly qualified chiropractor. She opens up a private practice and her
business sees a great rise in clients. After a year of success in building her business,
she decides to move out of her parent’s home and buy a luxury apartment in Sandton.
She approaches Golden Bank for a mortgage loan of R1.7 million. Golden Bank is a
registered credit provider and one of the leading banks in South Africa. Golden Bank
undertakes the necessary credit assessments and Janeene’s application is
successful.

1. List the 3 types of credit agreements that fall within the scope of the National
Credit Act. (3)

2. Describe what type of credit agreement Janeene has applied for. (2)

3. List 3 rights a consumer, like Janeene, is entitled to when applying for credit. (3)

4. Explain what the legal position would be between Janeene and Golden Bank if
Golden Bank is not registered as a credit provider in terms of the National Credit
Act. (2)

[10]