Section 9: Obligations of lenders

9. Obligations of lenders (1) Notwithstanding any other enactment, every lender shall, before granting a credit facility to any person— (a) take all reasonable steps to verify that the person has, or is likely to have, the means to repay the amount; (b) cause the credit agreement to be read out to the person and to the guarantor, if any; (c) ascertain whether the person and the guarantor, if any, understand sufficiently the language in which the credit agreement is drawn up; (d) where the person or the guarantor does not sufficiently understand the language of the credit agreement, cause to be explained the contents of the agreement to that person or to the guarantor in a language which that person understands; and (e) give a copy of the proposed credit agreement to the person and the guarantor, if any. (2) Where a lender grants a credit facility to a person, he shall, during the period of the credit agreement, not later than the end of the month immediately following each period of 6 months, send or make available to the borrower and to the guarantor, if any, a statement of account, in written or electronic form, showing— (a) the amounts outstanding, in principal and interest, at the beginning and the end of the 6 months-period; (b) the payments received, in principal and interest, during the 6 months-period; and (c) the annual rate of interest applicable during the 6 months-period. (3) Where a borrower is in default of payment of an instalment in respect of a credit facility, the lender shall, not later than 2 months immediately following the default, send a written notification to the borrower and the guarantor, if any, giving particulars of the instalments in default. [S. 9 amended by s. 6 of Act 38 of 2011 w.e.f. 15 December 2011.]