ss 1–8
PRESCRIBED RATE OF INTEREST ACT (updated)
DISTRIBUTED BY VERITAS
VERITAS MAKES EVERY EFFORT TO ENSURE THE PROVISION OF RELIABLE INFORMATION,
BUT CANNOT TAKE LEGAL RESPONSIBILITY FOR INFORMATION SUPPLIED.
CHAPTER 8:10
PRESCRIBED RATE OF INTEREST ACT1
Acts 30/1985, 2/1994, 6/1996
AN ACT to provide for the rate of interest payable on certain debts; to provide for the payment of interest on ce rtain judgment debts; and to provide for matters connected with or incidental to the foregoing.
[Date of commencement: 23rd May, 1986.]
1
Short title
This Act may be cited as the Prescribed Rate of Interest
Act [Chapter 8:10].
the debt from the date when the cause of action arose,
whether or not the amount of the debt is fixed by agreement
between the parties2 or by the judgment of a court.
(2) Where a court considers it fair and just in the circumstances of the case to do so, it may direct, in relation to a
claim referred to in subsection (1), that—
(a) no interest shall be payable on the amount of the debt;
or
(b) interest shall be payable on only part of the amount of
the debt; or
(c) interest shall be payable in respect of only a part of
the period since the cause of action arose, or shall be
calculated to run from a specified date; or
(d) interest shall be payable at a rate lower than the
prescribed rate;
or may give any two or more of such directions.
(3) Where proceedings have been instituted before a court
in respect of a claim referred to in subsection (1) and no
claim for interest has been made, the court may, on its own
motion, after hearing the parties and subject to this section,
include an award for interest in its judgment on the claim.
(4) Where, as a result of a notice in terms of section seven, the prescribed rate of interest is altered during the period
in respect of which interest is payable on a claim referred to
in subsection (1), the rate of interest in respect of each part
of that period shall, subject to any direction in terms of
subsection (2), be the prescribed rate then prevailing.
2
Interpretation
In this Act—
“judgment debt” means any sum of money or part thereof due in terms of any judgment or order of a court of law,
including an order as to costs, but does not include any
interest that does not form part of the principal sum of a
judgment debt;
“Minister” means the Minister of Justice, Legal and
Parliamentary Affairs or any other Minister to whom the
President may, from time to time, assign the administration
of this Act;
“prescribed rate” means the rate of interest prescribed in
terms of section seven.
3
Application of Act to State
This Act shall bind the State.
4
Interest on certain debts to be calculated at
prescribed rate
If a debt bears interest and the rate at which the interest is
to be calculated is not governed by any other law or by an
agreement or trade custom or in any other manner, such
interest shall be calculated at the prescribed rate as at the
date on which such interest begins to run, unless a court of
law, on the ground of special circumstances relating to that
debt, orders otherwise.
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Minister to prescribe rate of interest
The Minister may, by statutory instrument and with the
approval of the Minister responsible for finance, prescribe a
rate of interest for the purposes of this Act.
5
Interest on judgment debt
(1) Every judgment debt which would not otherwise bear
any interest after the date of the judgment or order by virtue
of which it is due shall, from the day on which such judgment debt is payable, bear interest at the prescribed rate,
unless that judgment or order provides otherwise.
(2) Any interest payable in terms of subsection (1) may
be recovered as if it formed part of the judgment debt on
which it is due.
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Transitional provisions
Where as a result of a notice in terms of section seven, the
prescribed rate of interest is fixed, increased or reduced, such
increase or reduction shall, in relation to debts or judgment
debts that became payable before the date of commencement
of the notice, apply only to interest accruing after that date.
6
Interest on illiquid claims
(1) Subject to this section and unless otherwise agreed,
every debt arising out of an unliquidated claim shall bear
interest calculated at the prescribed rate on the amount of
2
1
Section 6(1) as amended by the Arbitration Act [Chapter 7:15]
(Act No. 6 of 1996) (removal of reference to arbitration). This is the only
amendment to the Act as at 1st April 2007.
As amended at 1st April 2007
1
[Chapter 8:10]