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2018-01-01

Financial Institutions (Financial Lease) (Amendment) Regulations 2018

Commissioner of Financial Institutions Retelisoetse Matlanyane issued these 2018 regulations to amend Lesotho’s Financial Lease Regulations of 2013 by mandating written agreements, clarifying lessee and supplier obligations, and updating asset acceptance timelines. The amendments strengthen lessor rights by standardizing default notice delivery methods, establishing a fourteen-day remedy period, and granting immediate possession and disposal rights upon lease termination without judicial process. Additionally, the regulations streamline licensing for banks and micro-finance institutions seeking financial leasing approvals by requiring written Commissioner consent, business plan presentations, and a thirty-day approval window.

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LESOTHO Government Gazette Vol. 63 Friday – 9th November, 2018 No. 76 CONTENTS No. Page LEGAL NOTICES 85 Financial Institutions (Financial Lease) (Amendment)................... 846 Regulations, 2018 86 Lesotho National Development Corporation Board........................ 850 of Directors (Amendment) Notice, 2018 87 Declaration of Land Set Aside for Public Purposes ........................ 851 Ha Teko Area Notice, 2018 Published by the Authority of His Majesty the King Price: M6.50

LEGAL NOTICE NO. 85 OF 2018 Financial Institutions (Financial Lease) (Amendment) Regulations, 2018 Pursuant to section 71(1) of the Financial institutions Act, 2012 1 , I, DR. RET◊ELISITSOE MATLANYANE Commissioner of Financial Institutions, make the following Regulations - Citation and commencement

  1. These Regulations may be cited as the Financial Institutions (Financial Lease) (Amendment) Regulations, 2018 and shall come into operation on the date of publication in the Gazette. Characteristics of a financial lease
  2. Regulation 5 of the Financial Lease Regulations 2013 2 , referred to in this law as the Principal Law, is amended by inserting at the beginning of para￾graph (i) the following: “a written” Right and duties of lessee
  3. Regulation 7 of the Principal Law is amended by deleting the second subregulation “7(4)” which appears at the end of the Regulation and substituting subregulation “7(6)”. Duties of Supplier
  4. The Principal Law is amended by deleting regulation 9(1) and renum￾bering accordingly. Acceptance of an asset
  5. Regulation 12 of the Principal Law is amended by deleting subregulation “(1)(b)” and substituting the following: 846

“(1)(b) fails to reject and return the asset within a period of seven days from the delivering of the asset; or”. Pre-emptive notice and registration of financial lease 6. Regulation 16 of the Principal Law is amended - (a) in subregulation (1) by deleting in line 1, after lessor, “is” and substituting the following: “shall” and (b) by deleting subregulation “(3)”. Transfer of rights and duties 7. Regulation 18 of the Principal Law is amended by deleting in subregu￾lation (5), substituting the following words: “which may not be reasonably withheld”. Notice of default 8. Regulation 22 of the Principal Law is amended by - (a) deleting subregulation (1) and substituting the following: “(1) A lessor shall, where a lessee commits a default by failing to comply with any of the terms and conditions of a finance lease, serve the lessee with a notice of default - (i) by personal delivery, certified mail, facsimile or elec￾tronic mail; (ii) specifying in the notice, the circumstances which caused the default of the lease;” and (iii) appointing a date which is not less than fourteen days for remedying the default.” 847

(b) deleting subregulation (2) and substituting the following - “(2) If a lessee fails to remedy the default in terms of subregu￾lation (1), on or before the date appointed, the lessor shall serve a notice of termination and enforcement to the lessee, by per￾sonal delivery, certified mail, facsimile or electronic mail,” and (c) deleting in subregulation (3), the following words: “which shall also be filed in the registration system”. Termination 9. Regulation 25 of the Principal Law is amended by deleting subregulation (4), and substituting the following: “(4) Upon termination of a finance lease by the lessor as provi￾ded in subregulation (2), the lessor shall have the right to reco￾ver damages which will place the lessor in a position he would have been if the lessee had compiled with the provisions of the financial lease in accordance with its terms and conditions.” Possession and disposition at the end or termination of possession 10. The Principal Law is amended by deleting regulation 26 and substituting the following: “Possession and disposition at the end or termination of poss￾esion 26. (1) Upon the expiration of - (a) a period of a lease; (b) its prior termination; or (c) on the failure to adhere to the terms and conditions of the lease by the lessee, inc￾luding the failure to pay lease rentals, 848

the lessee shall immediately return the asset to the lessor, subject to fair wear and tear. (2) In the event of a lessee’s failure to return the asset to the lessor, the lessor has the right to: (a) take possession of the asset without re￾sorting to judicial process; and (b) dispose the asset immediately. (3) A lessor shall have an absolute right to dispose of an asset without prejudice and delay. (4) Where a lessor has failed to comply with the obligation to give notice in conformity with these regulations, the lessee is entitled to damages. Licencing of financial lease company 11. Regulation 29(4) of the Principal Law is amended by deleting “Notwith￾standing” “subregulation (2)” and substituting the following: “Subregulation (3)”. Special requirements for a bank credit only and deposit taking micro-fi￾nance institution, to engage in financial leasing 12. Regulation 30 of the Principal Law is amended - (a) by deleting “subregulation (2)” and substituting the following: “(2) Notwithstanding regulation 27(2), a bank, a credit-only and deposit taking micro-finance institution which intends to op￾erate a financial leasing business, shall apply for approval in writing, to the Commissioner. ”; (b) by deleting “subregulation (4)”, and substituting the following: “(4) A bank, credit-only and deposit taking micro-finance 849

institution seeking approval for an application made in terms of subregulation (2), is required to make a presentation on its business plan to the Commissioner.”; (c) by deleting “subregulation (5)” and substituting the following: “(5) Where the Commissioner approves an application made under subregulation (2), the Commissioner shall grant the bank, credit-only and deposit taking micro-finance institution, permis￾sion to operate a financial lease licence business within thirty days after the date of submission of the application”; and (d) in subregulation (6), by inserting in line 1, after “bank”, the fol￾lowing: “credit-only and deposit taking micro-finance institution.” Capital requirements 13. The Principal Law is amended by deleting regulation 31(1)(a) and renumbering accordingly. DATED: DR. RET◊ELISITSOE MATLANYANE COMMISSIONER OF FINANCIAL INSTITUTIONS NOTE

  1. Act No. 3 of 2012
  2. L.N. No. 39 of 2013 LEGAL NOTICE NO. 86 OF 2018 Lesotho National Development Corporation Board of Directors (Amendment) Notice, 2018 Pursuant to section 8(3)(c) of the Lesotho National Development Corporation Act, 1990 1 , I, 850

TEFO MAPESELA Minister responsible for trade and industry make the following notice: Citation and commencement

  1. This Notice may be cited as the Lesotho National Development Corpo￾ration Board of Directors (Amendment) Notice, 2018 and shall come into oper￾ation on the date of publication in the Gazette. Amendment
  2. The Lesotho National Development Corporation Board of Directors No￾tice, 2017 2 is amended in clause 2 - (a) by deleting “Mr. Thebe Mokoatle” and substituting “Mr. Mochaba Soaile”; and (b) by deleting “Mr Khomoatsana Tau” and substituting “Mrs Tseleng Mamosotho Mokhehle”. DATED: 01 NOVEMBER, 2018 TEFO MAPESELA MINISTER OF TRADE AND INDUSTRY NOTE
  3. Act No. 13 of 1990 as amended by Act No. 7 of 2000
  4. L.N. No. 80 of 2017 LEGAL NOTICE NO. 87 OF 2018 Declaration of Land Set Aside for Public Purposes Ha Teko Area Notice, 2018 In exercise of the powers conferred on me by section 51 of the Land Act, 2010 1 , I, 851

HABOFANOE LEHANA Minister of Local Government and Chieftainship Affairs, after having consulted with Mazenod Community Council and Maseru District Council hereby declare that the land described in this Notice is set aside for public purposes. Description: Every right or interest in and to the land (fields) described as agricultural land delineated on cadastral plans No. 12312, 12314, 13311 and part of 13313 and part of 13313 held in the office of Chief Surveyor, Maseru, in extent 42.8 square kilometers (428) hectors more or less situated at Ha Teko Maseru District. Lessee: Field owners of Ha Teko Maseru district or their heirs. Purpose: The land is required for Town Planning Scheme. Date of On the date of publication of this Notice in the Gazette, all inter￾Surrender: ests in or affecting the said land shall cease to subsist and the allottees’ interest in the land shall revert to the State. Compen- Compensation is estimated at Three Hundred Million Maloti sation: (M300, 000,000.00) or more or less and shall be apportioned to the claims accordingly. Claims: Any person having any claim in the land set aside may submit mit his claim for compensation to me by forwarding the details thereof to the Commissioner of Lands P.O. Box 876, Maseru 100 within three (3) months of the date of publication of this notice in the Gazette. DATED: HABOFANOE LEHANA MINISTER OF LOCAL GOVERNMENT AND CHIEFTAINSHIPAFFAIRS NOTE

  1. Act No. 8 of 2010 Printed by the Government Printer, P.O. Box 268, Maseru 100 Lesotho 852
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