CAN A BODY CORPORATE CHARGE INTEREST? In terms of the - TopicsExpress

CAN A BODY CORPORATE CHARGE INTEREST? In terms of the prescribed Management Rules (Rule 31(6)), bodies corporate are only entitled to charge interest on overdue levy accounts if a trustees’ resolution to that effect is in place. There is, however, limited restriction on the rate at which interest is charged, as the National Credit Act does not apply in these instances. The body corporate, if so resolved, can also charge compound interest. The only issues to determine are therefore: 1. whether there is a trustees resolution in place; 2. is the interest charged in line with the resolution; and 3. does the interest fall foul of the in duplum rule (which will apply).

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