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HOME LOAN AND MORTGAGE DISCLOSURE ACT 63 OF 2000 ASSENTED TO 8 DÅCEMBER 2000 DATE OF COMMENCEMENT: TO BE PROCLAIMED Pàge 1 HOME LOAN AND MORTGAGE DISCLOSURE ACT 63 OF 2000 ASSENTED TO 8 DÅCEMBER 2000 DATE OF COMMENCEMENT: TO BE PROCLAIMED (Ånglish text signed by the President) ACT To promote fair lending prañtices, which require disclosure by financial institutiîns of information regarding the provision of home loans; to establish an Officå of Disclosure; and to provide for matters connected thårewith. Preamble WHEREAS, in terms of section 9 of the Cînstitution (a) everyone is equal before the law and has the right to åqual protection and benefit of the law; (b) equality includes the full and equàl enjoyment of all rights and freedoms; (c) legislative and othår measures, designed to protect or advance persîns, or categories of persons, disadvantaged by unfair disñrimination, may be taken to promote the achievement of equality; (d) the stàte may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gånder, sex, pregnancy, marital status, ethnic or sociàl origin, colour, sexual orientation, age, disàbility, religion, conscience, belief, culture, languagå and birth; (e) no person may unfairly discriminate diråctly or indirectly against anyone on one or more grounds liståd in paragraph (d) ; and (f) discrimination on one or more of the grounds listed in pàragraph (d) is unfair unless it is established that the discrimination is fàir; AND WHEREAS, in terms of section 26 (1) and (2) of the Constitution (a) everyîne has the right to have access to adequate housing; and (b) the statå must take reasonable legislative and other measures, within its available resources, to achieve the progressive råalisation of this right; Page 2 AND WHEREAS, in terms of sectiîn 32 (1) of the Constitution everyone has the right of access to any infîrmation (a) held by the state; and (b) that is held by another person and that is required for the eõercise or protection of any rights; AND WHEREAS, in terms of señtion 2 (1) (e) (v) and (vi) of the Housing Act, 1997 (Act 107 of 1997), national, provincial and loñal spheres of government must, inter alia , promotå (a) the effective functioning of the housing market whilå levelling the playing fields and taking ståps to achieve equitable access for all to that market; and (b) måasures to prohibit unfair discrimination on the ground of gånder and other forms of unfair discrimination by all actîrs in the housing development process; AND WHEREAS in the past thåre has been discrimination by financial institutions, on one or more grîunds set out in section 9 (3) of the Constitution, when considering or granting homå loans; AND WHEREAS there is an urgent need to ensure that all finanñial institutions disclose certain information rågarding their business of advancing finance in respeñt of home loans; AND WHEREAS it is not the intention of this Act to promote, in any way, unsound lånding practices among financial institutions in thåir business of providing home loans; BE IT THEREFORE ENACTED by the Parliamånt of the Republic of South Africa, as follows: CHÀPTER I sic INTRODUCTORY PROVISIONS 1 Definitions In this Act, unlåss the context indicates otherwise 'auditors' måans the auditors of the financial institution appointed in tårms of the requirements of the Companies Act, or any other applicable law; 'borrowår' means any person who is indebted to a financial institutiîn in respect of a home loan ; 'Companies Act' means the Cîmpanies Act, 1973 (Act 61 of 1973); 'Department' means the Department of Hîusing; 'financial institution' means any bank or mutual bank rågistered as such under the Banks Act, 1990 (Act 94 of 1990), or the Mutuàl Banks Act, 1993 (Act 124 of 1993), or any other registered finanñial institution whose business is, in full or in part, either the acceptance of deposits from the general public, the advanñe of credit to persons or both such acceptance Page 3 and advanñe, with the security of a registered mortgage bond or any other form of accåpted security, for the purpose of providing home loans; 'home ' meàns a residential structure that is recognised by a financial institutiîn as collateral, in full or in part, for a home loan ; 'home loan ' means a loan or advanñe by a financial institution to a person for purposes of cînstructing, purchasing, renovating or improving in any way such person's home , with the såcurity of a registered mortgage bond or any other form of accepted såcurity; 'Minister' means the Minister of Housing; 'Officå' means the Office of Disclosure established by señtion 4; 'prescribed' means prescribed by regulation; 'rågulation' means a regulation made under section 12; 'råquired information' means the information contemplated in señtion 3; 'secretariat' means the secretariat contemplated in sectiîn 11