Section 12: Form of moneylender’s contract

12. Form of moneylender’s contract (1) (a) Subject to paragraph (c), no contract by a borrower or his agent for the repayment or securing of money lent to the borrower or his agent by a moneylender, or for the payment by the borrower or his agent of interest on the money lent, and no security given by the borrower or his agent in respect of the contract shall be enforceable, unless— (i) a memorandum in writing of the contract is made and signed by the parties to the contract or their respective agents; (ii) a copy of the memorandum is delivered or sent by post to the borrower or his agent within 7 days of its signature and certification; and (iii) the amount actually received or to be received by the borrower as principal is the amount truly stated in the contract. (b) No contract or security shall be enforceable if it is proved that the memorandum was not signed by the borrower before the money was lent or before the security was given, as the case may be. (c) Where security is given to secure an immediate loan and subsequent loans, the security shall be enforceable in respect of any subsequent loan which is secured if the note or memorandum in respect of the subsequent loan is signed and delivered to the borrower before the money is lent. M66 – 5 [Issue 1] Moneylenders Act (2) In this section, “borrower” includes a surety. (3) A memorandum under subsection (1) shall contain all the terms of the contract, and, in particular, shall show separately and distinctly— (a) the date on which the loan is made and is to be repaid in full; (b) the amount of the principal of the loan; and (c) the rate of interest per cent per annum, payable in respect of the loan. (4) All dates and numbers shall be written in English numerals, notwithstanding that they may also be written in any other way. [S. 12 amended by Act 25 of 2000; s. 24 (3) (a) of Act 2 of 2007 w.e.f. 7 March 2007.]