loan policy regulations

nteu is an amalgamation of

national tertiary education staff union and

national union of tertiary employees of south africa

[registration number LR2 / 6 / 2 / 610]

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The NATIONAL TERTIARY EDUCATION UNION is in the process of registration

POLICY AND PROCEDURE REGULATING

FINANCIAL ASSISTANCE FROM NTEU NATIONAL TO NTEU BRANCHES

1. REASON FOR POLICY

Serious concern was raised with regard to the increasing risk associated with financial assistance to branches.

2. POLICY STATEMENT

2.1 Financial assistance from NTEU National will only be granted if a branch is in good standing and able to sustain the repayment of a loan.
2.2 Financial assistance will only be considered if such assistance could be regarded as being to the collective benefit of branch members and/or NTEU as a national body.
2.3 Financial assistance will only be provided in the form of a secured loan, for example contractual accountability of branch members (individually and collectively) to secure the repayment of a loan.
2.4 Financial assistance will be limited to the following maximums:

R100 000 – (One hundred thousand rand)
Interest rate: Prime bank rate
Repayment period: Up to 24 months

2.5 Repayment of a loan will be effected by debit order.
2.6 Although this policy is not applicable to the Branch Legal Assistance Fund that has been created on National level to assist branches with legal costs on local level and that are paid for by members of each individual branch, further financial assistance will only be granted if the Branch Legal assistance Fund has been exhausted.

3. PROCEDURE

3.1 A branch must apply for financial assistance before said branch commits itself to financial expenditure beyond the branch capacity.

3.1.1 Should a branch have an existing loan balance it must be settled in full prior to any further loan being granted.

3.1.2 Should a branch have a record of mismanaging its financial affairs, such a branch will not qualify to apply for a loan from National.

3.2 A branch must supply the COC with an application for financial assistance, which must include at least the following:

3.2.1 A complete motivation.

3.2.2 Minutes to indicate that branch members have agreed to apply for financial assistance.

3.2.3 A funding plan for repayment of the loan.

3.2.4 Latest audited financial statements and interim financial statements where applicable.

3.2.5 Contractual agreement that branch members will stand in to repay any debt on an individual and collective basis.

3.3 Approval of financial assistance will be rendered by the COC within the financial capability of NTEU National.