| Summary: | Money lenders frequently use sale and lease back agreements as an
alternative to other more conventional forms of security. These
agreements are popular because they are simple and inexpensive to put
in place. Unfortunately, South African courts give legal effect to the true
intention of contracting parties. Sale and lease back agreements are
often held to be simulated contracts and as such they are enforced as
disguised pledges. One of the few alternative security options available to
money lenders, is a notarial bond registered in terms of the Security By
Means of Movable Property Act 57 of 1993. This act has been criticised
for creating an ineffective form of security that is costly and cumbersome
to put in place. It is suggested that the current security options available
to money lenders are supplemented with the creation of a more user
friendly public register for the registration of security interests. === Private Law === LL.M.
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