Home Loan and Mortgage Disclosure Act

4. There is hereby established m office to be known as the Office of Disclosure. 40 Functions of Office 5. ( 1 ) The Office is responsible for— (a) (b) (c) (d) (e) receiving the required information; analysing and interpreting the required information; receiving and investigating public comments on financial institutions relating 45 to home loans; making available to the public, information that indicates whether or not financial institutions are serving the housing credit needs of their communi- ties, and rating such financial institutions in accordance with such informa- tion: assisting in identifying possible discriminatory lending patterns and assisting any statutory regulatory body in enforcing compliance with anti-discrimina- tory legislation; 50 s N() 21900 GOVERNh!ENTG /\ZE,TTE. 15 DECEMBER 2000” ,’ict so. 63.2000 HOklE LOAN AND \lCRTG}\GE DISCLOSLIRE ACT, 2000 (f) reporting to the Minister annually in respect of its work during the preceding \ear, and such report Illust inc)ude an analysis of the performance of each hnancial institution in complying with the terms of the Act: and (g) making recommendations to the Minister on any matter fialling within the scope of this Act. (~) The Offj~e— 5 (a) must ensure that financial institutions comply with this Act and the provisions of item 4 of the Schedule to the Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 (Act No. 4 of 2000); (11) must advise the Minister on the format, content and timing of disclosure by 10 financial institutions in terms of the requirements of this Act; (c) may require financial institutions to substantiate information disclosed in terms of this Act where reasonable doubt may exist whether or not the information disclosed is fully accurate or comprehensive; and (d) may investigate and institute proceedings to verify the validity of information 15 disclosed by a financial institution in accordance with the requirements of this Act, and for that purpose, such financial institution must afford the Office all reasonable assistance and access to premises and information to enable the Office to analyse and interpret such information. Constitution of Office 20

6. The Office consists of no more than 10 members appointed by the Minister by virtue of their expertise and experience in matters related to banking, housing finance and investment, community economics and civil rights. Chairperson and deputy chairperson 7. (l) The Minister must designate one of the members of the Office as chairperson of 25 the Office and another as deputy chairperson. (2) (aj When the chairperson is absent or not able to perform his or her functions as chairperson, or when there is a vacancy in the office of chairperson, the deputy chairperson must act as chairperson. (b) If the chairperson and deputy chairperson are absent or not able to perform the 30 functions of chairperson, the members of the Office must elect another member to act as chairperson. (c) A member acting as chairperson has all the powers and must perform all the duties of the chairperson. Period of office, vacation of office and filling of vacancies 35 8. (1) A member of the Office must be appointed for such period, not exceeding three years, as the Minister may determine at the time of appointment. (2) A member of the Office ceases to be a member if— (a) he or she resigns; (b) without leave of the Office, he or she is absent from three consecutive 40 meetings of the Office; (c) his or her estate is sequestrated or he or she applies for assistance contemplated in section 10(1)(c) of the Agricultural Credit Act, 1966 (Act No. 28 of 1966); (d) he or she has been declared by a court to be mentally ill or disordered; 45 (’e) he or she is convicted of— (i) an offence involving dishonesty or corruption; or (ii) any other offence and sentenced to imprisonment without the option of a fine; (~) he or she becomes a member of Parliament, a provincial legislature, a 50 municipal council, the Cabinet or an executive council of a province; or (g) the Minister terminates his or her office for reasons which are just and fair. Ad No. 6 3 . 2 0 0 0 HO\lE L(34N AND MORTGAGE DISCLOSLIRE ,\ CT. ?()()() (3) A member of dle Otlice may be reappointed at the temlintition of his or her teml of office. (4) lf a member of the Otlice ceases (o hold of5ce before the end of his or her term of ofice. the Minister may. subject to section 6, appoint somebody to fill the vacancy for the remainderof the period of the tet-m ofofiice of the member. 5 Meetings of Office 9.( 1) The first meeting of the Office must be held at the time and place determined by (he Minister. and thereafter a meeting of the Office must be held at the time and place determined by the chairperson. (2) The chtiirperson— (a) may convene a special meeting of the Ofice; (b) must convene such meeting within 14 days of the receipt of a written request signed by at least five members of the OffIce to convene such meeting. (3) A quorum for a meeting of the Office is more than 50 per cent of its members. (4) The chairperson determines the procedure at the meetings of the Office. (5) All decisions of the 0f35ce must be taken by consensus but where consensus is not reached, the decision of a majority of the members present is the decision of the OffIce. (6) In the event of an equality of votes on any matter, the person presiding at the meeting will have a casting vote in addition to that person’s deliberative vote. (7’I Members of the Office must, before any decisions are taken, disclose any confl icts of interest, financial or otherwise, which they might have in making any decision relating to their tasks. 10 15 20 Remuneration and allowances of members of OfHce

10. Any member of the Office who is not in the full-time service of the State must be paid such remuneration and allowances as the Minister may, with the approval of the Minister of Finance, determine. 25 Secretariat 11. ( 1 ) The work incidental to the performance of the functions of the Office must be performed by a secretariat consisting of officials of the Department designated for that purpose by the Minister. (2) The costs and expenses connected with the application of this Act must be defrayed from money appropriated by Parliament to the Department for that purpose. (3) The Director-General of Housing is the accounting officer for the Office and must cause the installation of the necessary financial controls and management measures by the Office to ensure full accountability for expenses incurred by the Office. (4) Minutes of the proceedings of the Office must be kept and retained by the secretariat. Regulations

12. The Minister must. in consultation with the Minister of Finance and the Governor of the Reserve Bank, make regulations regarding any matter which— (g) in terms of this Act is required or permitted to be prescribed; and (b) it is necessary or expedient to prescribe in order to achieve or promote the objectives of this Act. 30 35 40 12 NO. 21900 GOVERNMENT GAZETTE, 15 DECEMBER 2000 Act !%o. 63, 2000 HOilE LOAN AND MORrGAGE DISCLOSURE ACT, XX)() Amendment to Usury Act, 1968 (Act No. 73 of 1968)

13. The definition of “housing loan” in section 1 of the Usury Act, 1968 (Act No. 73 of i 968), is hereby amended by the substitution for paragraph (c) of the following paragraph: “(c) where the loan is a home loan as defined in section 1 of the Home Loan and 5 Mortgage Disclosure Act, 2000.”. Exemptions 14. (1) The Minister may exempt a financial institution, or a category of financial institutions, from any or all of the requirements of this Act for a specified period of time, if the financial institution, or category of financial institutions, requires time to adjust systems and procedures in order to collect and provide the required information, or to collect the necessary information and put in place administrative systems to enable compliance with the requirements of this Act. (2) An exemption contemplated in subsection (1) may not exceed one year. Offences and penalties 15. (1) Any person who contravenes or fails to compl y with any provision of this Act is guilty of an offence. (2) A person convicted of an offence in terms of subsection (1) is liable to a fine not exceeding R 100000,00. Short title and commencement 10 15 20

16. This Act is called the Home Loan and Mortgage Disclosure Act, 2000, and takes effect on a date determined by the President by proclamation in the Gazette.