HYPOTHECATION: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Hypothecation (Authorised Creditors) Regulations

Hypothecation Regulations

HYPOTHECATION REGULATIONS

(under section 14)

(12th May, 1978)

ARRANGEMENT OF REGULATIONS

REGULATION

1. Citation

2. Fees

3. Prescribed forms

Schedule – Forms

S.I. 55, 1978,
S.I. 12, 1979,
S.I. 24, 1979.

1. Citation

These Regulations may be cited as the Hypothecation Regulations.

2. Fees

No fee shall be payable in respect of the registration by the Registrar of Deeds—

(a) of a document evidencing hypothecation, in accordance with section 3(2)(b) of the Act; or

(b) of a document evidencing the discharge of a hypothecation.

3. Prescribed forms

For the purposes of the Act—

(a) a notice to a buyer in accordance with the provisions of section 6(3) of the Act shall be in Form I set out in the Schedule;

(b) a notice to a buyer in accordance with the provisions of section 6(5) of the Act shall be in Form 2 set out in the Schedule;

(c) a notice to a buyer in accordance with the provisions of section 7(1) of the Act shall be in Form 3 set out in the Schedule; and

(d) the form of a deed of hypothecation and certificate of indebtedness required by sections 3 and 12 of the Act shall be in Form 4 set out in the Schedule.

SCHEDULE
FORMS

(r. 3)

Form 1
NOTICE OF NOMINATION AS BUYER IN TERMS OF SECTION 6(3)

HYPOTHECATION ACT

(Cap. 46:05)

To:

(hereinafter referred to as “the Buyer”) Take Notice that Whereas …………………………………….

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Hypothecator”) has entered into an agreement with ……………..

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Authorised Creditor”) in terms of which agreement the Hypothecator is indebted to the Authorised Creditor in certain sums of money; and whereas the Hypothecator has hypothecated

………………………………………………………………………………………………………………………..

to the Authorised Creditor in accordance with the Hypothecation Act; and whereas the Authorised Creditor has registered the said agreement in terms of the said Act against the name of the Hypothecator in the office of the Registrar of Deeds; and whereas in terms of the agreement the Hypothecator is restricted to selling produce or goods of the following classes, namely ………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………..

to or through certain nominated buyers;

and whereas you, the said ……………………………………………………………………………………..

are nominated in the said agreement as a buyer;

now therefore take notice that you are a buyer to or through whom the Hypothecator is obliged to sell the produce or goods of the stipulated classes/and that you are required, in terms of the said agreement, to remit the proceeds of sale of such produce or goods, less any commission or expenses reasonably incurred in the marketing of such produce and goods and due either to you, the Buyer, or some other person, to the Authorised Creditor *.

Dated at ………………………………………… this day of …………………………, 20 ………………

Authorised Creditor

* Delete if not applicable.

Form 2
NOTICE OF NOMINATION AS BUYER IN TERMS OF SECTION 6(5)

HYPOTHECATION ACT

(Cap. 46:05)

To:

(hereinafter referred to as “the Buyer”) Take Notice that Whereas …………………………………….

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Hypothecator”) has entered into an agreement with ……………..

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Authorised Creditor”) in terms of which agreement the Hypothecator is indebted to the Authorised Creditor in certain sums of money;

AND WHEREAS the Hypothecator has hypothecated …………………………………………………..

………………………………………………………………………………………………………………………..

to or through certain nominated buyers;

and whereas the Hypothecator has applied to the Authorised Creditor for authority to sell such produce or goods to or through you, the Buyer;

and whereas the Authorised Creditor has agreed thereto;

now therefore take notice that the Authorised Creditor determines in terms of section 7(5) of the Act that you are a buyer to whom or through whom the Hypothecator is authorised to sell his produce or goods aforementioned/and that you are required, in terms of the said agreement, to remit the proceeds of sale of such produce or goods, less any commission or expenses reasonably incurred in the marketing of such produce or goods and due either to you, the Buyer, or some other person, to the Authorised Creditor *.

Dated at ………………………………………… this day of …………………………, 20 ………………

Authorised Creditor.

* Delete if not applicable.

Form 3
NOTICE OF MONEYS DUE AND PAYABLE BUT UNPAID, IN TERMS OF SECTION 7(1)

HYPOTHECATION ACT

(Cap. 46:05)

To:

(hereinafter referred to as “the Buyer”)

TAKE NOTICE THAT WHEREAS …………………………………………………………………………….

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Hypothecator”) has entered into an agreement with ……………..

………………………………………………………………………………………………………………………..

(hereinafter referred to as “the Authorised Creditor”) in terms of which agreement the Hypothecator is indebted to the Authorised Creditor in certain sums of money;

AND WHEREAS the Hypothecator has hypothecated ……………………………………………….. to the Authorised Creditor in accordance with the Hypothecation Act;

AND WHEREAS the Authorised Creditor has registered the said agreement in terms of the said Act against the name of the Hypothecator in the office of the Registrar of Deeds;

AND WHEREAS you, the Buyer, have been specified as a buyer in terms of the said Act to whom or through whom the Hypothecator may sell his produce or goods of the following classes, namely …………………….

AND WHEREAS the Hypothecator is still indebted to the Authorised Creditor which debt has not been paid in terms of the said agreement;

NOW THEREFORE notice is hereby served on you, the Buyer, notifying you that moneys are owing to the Authorised Creditor by the Hypothecator and that the Authorised Creditor invokes section 7(2), you are hereby required, subject to the provisions of that section, to pay to the Authorised Creditor any moneys owing by you to the Hypothecator by reason of the sale of the produce or goods of the classes aforementioned which may from time to time hereafter be owing by you to the Hypothecator up to an amount of P ………………………………… until the Authorised Creditor notifies you, in accordance with section 7(3) of the Act, that the debt owing by the Hypothecator is satisfied or that he no longer wishes to enforce his rights under the Act *.

Dated at ………………………………………… this day of …………………………, 20 ………………

Authorised Creditor

* Delete if inapplicable.

Form 4
DEED OF HYPOTHECATION AND CERTIFICATE OF INDEBTEDNESS

(s. 12)

HYPOTHECATION ACT
(Cap. 46:05)
HYPOTHECATION REGULATIONS
KNOW ALL MEN WHOM IT MAY CONCERN
THAT WHEREAS on the …………………………. day of …………………………………………………..
20 …………………………………………………………………………………………………………………….
(hereinafter referred to as “the Authorised Creditor”) and …………………………………………………
…………………………………………………………………………………………………………………………
(hereinafter referred to as “the Hypothecator”) residing at ………………………………………………..
…………………………………………………………………………………………………………………………
and whose date of birth is ……………………………………………………………………………………….
or, if this is not known, the approximate age is ………………………………………………….. years,
concluded an agreement in terms of which the Hypothecator is indebted to the Authorised Creditor in certain sums of money, in terms of which agreement it was agreed that the Hypothecation Act would apply to the said agreement;
NOW THEREFORE the Authorised Creditor, acting through his duly authorised servant or agent, and the Hypothecator do hereby certify as correct a document as referred to in sections 3(2) and 12 of the Act, as follows-
1. The full names, place of residence, postal address and date of birth or approximate age of the said Hypothecator are set out above.
2. The place of signature of the above document is ………………………………………………………
3. It is hereby acknowledged that the Authorised Creditor has, through his duly authorised servant or agent ……………………………………………………………………………………… explained fully to the Hypothecator the legal effect of making this Deed of Hypothecation, subject to the provisions of the said Act, and the Hypothecator hereby acknowledges himself to have fully understood the explanation and the legal effect of the said agreement, subject to the provisions of the said Act.
4. Where appropriate, the forms prescribed by the Hypothecation Regulations have been completed and signed, and the effect of each form is fully understood by the Hypothecator.
5. Under this clause the Authorised Creditor shall specify below the method of repayment which, by signature of this document, the Hypothecator agrees to observe-
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
Provided that, if the Hypothecator fails to observe or carry out any of the terms of the agreement, and, in particular, the method of repayment specified above, the Authorised Creditor may take action in accordance with section 9 of the Act.
* 6. It is further certified and acknowledged that, in terms of the said agreement, the terms of section 3 of the Act apply and the following assets of the Hypothecator are subject to hypothecation to the Authorised Creditor in terms of the said section-
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
*Delete if inapplicable.
* 7. That in terms of the said agreement the following-
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
may only be sold by the Hypothecator to any of the following buyers-
Name	Address
…………………………………………………………………………………………………………………………
and, in the case of livestock or other property described below, it should bear the brand or stamp required by the Authorised Creditor-
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
*Delete if inapplicable.
8. Signed and certified as correct in accordance with the Hypothecation Act-
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
Dated and executed by the Authorised Creditor at ……………………………………………………….. this …………………………………………….. day of ………………………………., 20 ……………………
	………………………………………………………… Authorised Creditor
Witnesses:
1. ……………………………………………………………………………………………………………………..
2. ……………………………………………………………………………………………………………………..
Dated and executed by the Hypothecator at ……………………………………………………………….. this …………………………………………….. day of ………………………………., 20 ……………………
	…………………………………………………………. Hypothecator
Witnesses:
1. ……………………………………………………………………………………………………………………..
2. ……………………………………………………………………………………………………………………..
Official Stamp	…………………………………………………………. Registrar

HYPOTHECATION (AUTHORISED CREDITORS) REGULATIONS

(section 14)

(29th May, 1987)

ARRANGEMENT OF REGULATIONS

REGULATION

1. Citation

2. Appointment of authorised creditors

SCHEDULE

S.I. 65, 1987,
S.I. 107, 1990,
S.I. 1, 1991,
S.I. 12, 1991,
S.I. 98, 1991,
S.I. 117, 1991,
S.I. 134, 1991,
S.I. 25, 1992,
S.I. 75, 1993,
S.I. 100, 1993,
S.I. 104, 1993,
S.I. 32, 1994,
S.I. 54, 1995,
S.I. 55, 1996,
S.I. 10, 1997,
S.I. 86, 1997,
S.I. 101, 1997,
S.I. 8, 1998,
S.I. 10, 1999,
S.I. 40, 1999,
S.I. 101, 1999,
S.I. 114, 1999,
S.I. 26, 2000,
S.I. 37, 2000,
S.I. 14, 2001,
S.I. 18, 2001,
S.I. 76, 2001,
S.I. 29, 2002,
S.I. 32, 2003,
S.I. 68, 2003,
S.I. 67, 2004,
S.I. 68, 2004,
S.I. 39, 2005,
S.I. 19, 2007,
S.I. 39, 2007,
S.I. 64, 2007,
S.I. 7, 2008,
S.I. 32, 2008,
S.I. 61, 2008,
S.I. 75, 2008,
S.I. 77, 2008,
S.I. 2, 2009,
S.I. 46, 2009,
S.I. 75, 2009,
S.I. 4, 2010,
S.I. 41, 2010,
S.I. 59, 2010,
S.I. 121, 2010,
S.I. 124, 2010,
S.I. 71, 2011,
S.I. 102, 2011,
S.I. 6, 2012,
S.I. 50, 2012,
S.I. 63, 2012,
S.I. 74, 2012,
S.I. 95, 2012,
S.I. 86, 2013,
S.I. 7, 2014,
S.I. 45, 2014,
S.I. 95, 2014,
S.I. 115, 2014,
S.I. 152, 2014,
S.I. 9, 2015,
S.I. 41, 2015,
S.I. 42, 2015,
S.I. 63, 2015,
S.I. 53, 2016,
S.I. 92, 2016,
S.I. 57, 2017,
S.I. 150, 2018,
S.I. 51, 2019,
S.I. 73, 2019,
S.I. 82, 2019,
S.I. 89, 2019,
S.I. 108, 2019,
S.I. 153, 2019,
S.I. 15, 2020,
S.I. 25, 2020,
S.I. 77, 2020,
S.I. 103, 2020,
S.I. 85, 2021,
S.I. 112, 2021,
S.I. 117, 2021,
S.I. 1, 2022,
S.I. 20, 2022,
S.I. 49, 2022,
S.I. 133, 2022,
S.I. 134, 2022,
S.I. 143, 2022,
S.I. 149, 2022,
S.I. 9, 2023,
S.I. 125, 2023,
S.I. 67, 2024,
S.I. 152, 2024,
S.I. 13, 2025,
S.I. 14, 2025

1. Citation

These Regulations may be cited as the Hypothecation (Authorised Creditors) Regulations.

2. Appointment of authorised creditors

Each of the persons specified in the Schedule hereto is hereby authorised to be a person empowered to take security by way of hypothec under the provisions of the Act.

SCHEDULE
AUTHORISED CREDITORS

(para 2)

Barclays Bank PLC;

Financial Services Company of Botswana (Pty) Ltd;

International Finance Corporation;

Zimbank Botswana Limited;

Commonwealth Development Corporation;

Africa Growth Fund;

Overseas Private Investment Corporation;

ULC (Pty) Ltd;

Swedfund International AB;

First National Bank of Botswana Limited;

Norwegian Agency for Development Corporation;

Botswana Meat Commission;

Kgalagadi Breweries (Pty) Limited;

Bolux Milling (Pty) Limited;

Stanbic Bank Botswana Limited;

Lazare Kaplan Botswana (Proprietary) Limited;

AMBIV (Proprietary) Limited;

Metro Sefalana Cash and Carry Limited (METSEF);

Phakalane Estates (Proprietary) Limited;

ABN AMRO Holdings N.V.;

Baleen (Proprietary) Limited;

Portugal Telecommunications International SGPS, S.A.;

Hyundai Corporation;

Hyundai Corporation U.K. Limited;

Investec Bank (Botswana) Limited;

Telefonaktiebolaget L.M. Ericsson;

Trans Africa (Proprietary) Limited;

Botswana Agricultural Marketing Board;

Sefalana SA Botswana Limited;

Dafin Sales and Distribution (Proprietary) Limited;

First Rand Bank Limited;

Bank of Baroda (Botswana) Limited;

Citizen Entrepreneurial Development Agency (CEDA);

Gilat Satellite Network Limited;

Export Credit Insurance and Guarantee Company (Botswana);

Investec Bank Limited (South Africa);

Ceda Venture Capital Fund;

Kingdom Bank Africa Limited;

Kingdom Finance (Proprietary) Limited;

PPC Botswana (Proprietary) Limited;

MTN International (Mauritius) Limited (MTNI);

AFGRI Operations Limited;

Micawber (Pty) Limited;

BIFM Capital Investment Fund One (Proprietary) Limited;

Bank Gaborone (Proprietary) Limited;

Ned bank Limited;

Bell Equipment Limited;

Capital Bank Limited;

Scania Finance Southern Africa (Proprietary) Limited;

Natasa Mining Limited;

Zambia Copper Investment Limited;

Lexshell 809 Investments (Pty) Limited;

ABN AMRO Bank (Botswana) Limited;

ABN AMRO Bank (Botswana) OBU Limited;

Standard Chartered Trade Services Corporation;

Ditto Investments (Pty) Limited;

Wall Street Investment (Pty) Limited;

Isobuzz Ventures (Proprietary) Limited;

Bank of India;

Sasol Petroleum International (Pty) Limited;

Origin Energy Southern Africa Holdings (Pty) Limited;

Trau Bros;

The Bank of Nova Scotia;

AEV Investment (Pty) Limited;

Standard Chartered Bank (Hong Kong) Limited;

First City Monument Bank PLC (FCMB PLC);

Royal Bank of Canada;

State Bank of India (Botswana) Limited;

Samsung C&T UK Limited;

Botswana Development Corporation Limited;

National Development Bank;

PULSANTE (Pty) Ltd;

AFRITEC (Pty) Ltd;

Industrial Development Corporation of South Africa, Limited;

Choppies Distribution Centre (Pty) Ltd;

SEEDCO (Proprietary) Limited;

Mizuho Bank Limited (Mizuho);

Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE);

Sumitomo Trust and Banking Company Limited (SMTB);

Bank of Tokyo-Mitsubishi UFJ Limited (BTMU);

Japan Bank for International Co-operation (JBIC);

Export-Import Bank of Korea (KEXIM);

Nippon Export and Investment Insurance (NEXI);

SMBC Nikko Capital Markets Limited;

Ecsponent Holdings Limited;

Investec Bank (Mauritius) Limited;

Babcock TCM Plant (Proprietary) Limited t/a Babcock Equipment Botswana;

The Hollard Insurance Company Limited;

RGLD GOLD AG;

RK Mine Finance Cayman 1 Limited;

Ticano Group (Pty) Ltd;

Minerals Development Company Botswana (Proprietary) Limited;

Botswana Government;

Macquarie Bank Limited;

Letshego Financial Services (Pty) Ltd;

Sandvik Credit AB (Publ);

ABSA Bank Kenya PLC;

Africa Conservation and Communities Tourism Fund L.P;

BCL Limited;

Africa Agriculture and Trade Investment Fund;

Tati Nickel Mining Company Proprietary Limited;

Loinette Capital Limited;

Tshukudu SPV Proprietary Limited;

ACCT Holdings S. Ã¡. r. l.;

Botswana Insurance Fund Management Limited;

ABSA South Africa;

Botswana Medical Aid Society;

Selebi-Phikwe Solar Security Proprietary Limited;

Cymbria Corporation;

Mmadinare Solar Security Proprietary Limited;

Jwaneng Solar Security Proprietary Limited;

AFRIGREEN Debt Impact Fund SLP.