Two Decades of Special Notarial Bonds in Terms of the Security by Means of Movable Property Act

Abstract

With reference to case law, this article investigates the application of the Security by Means of Movable Property Act 53 of 1993 during the first two decades of its existence. The Act provides for the registration of a non-possessory pledge over movable property in South Africa. From the case law, certain themes appear to be significant: (1) the consequences of the bondholder’s security right being deemed a pledge as if delivery had taken place; (2) the description of the property that serves as the object of security; and (3) the possibility of obtaining actual possession of the property by ‘perfecting’ the bond. The purpose of this article is to look back at the two decades that have passed since the Act came into effect, and to briefly explore these themes as they have emerged in case law. I also identify and provide some preliminary remarks on some areas of interest that may be in need of further contemplation.