What does a notarial bond mean?

A general notarial bond is a mortgage by a borrower of all of its tangible movable property in favour of a lender as security for a debt or other obligation. However, a general notarial bond does not (in the absence of attachment of the property before insolvency) make the lender a secured creditor of the borrower.

What is a notarial bond South Africa?

A notarial bond in present-day South African law is a bond, attested by a notary public, which hypothecates movable property, either generally or specifically, and which has been registered in the Deeds Registry. …

How long does it take to register a notarial bond?

Section 61 of the Deeds Registries Act 47 of 1937, requires every notarial bond to be registered in a deeds registry within a period of three months after the date of its execution or within such extended periods as the court may on application allow.

How is a notarial bond Cancelled?

Cancellation of notarial bond registered in more than one deeds registry If a notarial bond is, in terms of s 62 of the Act, registered in more than one deeds registry, a copy of the original consent to cancellation, duly certified by the registrar of deeds in whose office the bond was initially cancelled, may be …

What do you need to know about notarial bonds?

What is a notarial bond? A notarial bond is a form of credit security that is registered in the Deeds Office over some kind of movable property that the debtor has put up as security for its obligations to the creditor in terms of the loan.

What happens if you lose a notary bond?

Later, they will have the opportunity to file a claim against the company they received the bond from for a reimbursement of the money they lost. It will fall into the hands of the notary at fault to pay back the funds to the surety company once the client is reimbursed.

Where can I file a claim against a notary bond?

If you need to file a claim against the bond of a Notary, the first thing you’ll need to do is find out with which government office the bond is filed. For bonds filed with a commissioning official, such as a secretary of state, you will contact the secretary of state for information about the surety company that issued the Notary’s bond.

When to register a special notarial bond as security?

When there is more than one special notarial bond registered over a particular movable asset, the special notarial bond registered first will have priority.