Did you know that in terms of Section 70(5) of the Insolvency Act, 24 of 1936 (“the Act”) the Master and the surety for the trustee, or any person authorised by such surety, shall have the same right to information in regard to an estate account opened under Section 70(1)(a), (b), or (c) of the Act, as the trustee himself possesses, and may examine all vouchers in relation thereto, whether in the hands of the bank institution or building society or of the trustee?
Jacqui Smith (LLB)
Legal Advisor
In South Africa, the rights of a surety are crucial to a suretyship agreement, providing protections such as requiring the creditor to pursue the principal debtor first, being released if the creditor’s actions prejudice them, and accessing relevant financial information about the debtor. The surety can also seek recourse against the debtor if they pay the debt and demand an equal contribution from other sureties if multiple exist. Understanding these rights ensures a fair balance between all parties, and Shackleton Risk Management can assist in safeguarding your interests in any suretyship under South African law. Contact us today to learn more.
Subscribe now
Share this article
Read More
More Articles
Road Accident Fund (RAF) Surety Bonds
At Shackleton Risk Management, we can assist you with surety bonds for RAF matters. Surety bonds for RAF matters are provided by Safire Insurance Company Limited (“the Insurer”) and can be lodged by us with the Master on your behalf if needed. Trustees appointed to manage a trust must furnish security to the Master’s satisfaction.…
Do Builders Need Professional Indemnity Insurance in South Africa?
Professional indemnity insurance (PII) serves as a protective measure against claims of professional negligence, errors, or omissions in services rendered. It provides financial coverage for legal costs and compensation payments arising from such claims, ensuring builders are safeguarded against potential liabilities. Legal Requirements and Industry Standards: Unlike certain professions where professional indemnity insurance is mandated…
Understanding the Distinction Between Public Liability vs Professional Indemnity Insurance in South Africa
What Is Public Liability Insurance: Public liability insurance safeguards businesses and professionals against claims for injury or property damage caused to third parties while on their premises or as a result of their operations. It covers legal costs and compensation payments if a third party sues for bodily injury or property damage incurred due to…