South African Credit Professionals: The Name Is Bond – Special Notarial Bond

By Garry Hertzberg and Natasha Sonblo of hersalaw.co.za

Imagine this: a new customer walks into your office asking for a hefty line of credit, or an existing one keeps missing their payment deadlines. What do you do? You might feel like you’re stepping into a high-stakes mission, and this is where "Bond" comes in — not James, but just as secure.

Allow me to introduce the Special Notarial Bond — your trusted ally under the Security by Means of Movable Property Act, 57 of 1993 (SMMPA). it’s the registration of a Special Notarial Bond over specific and identifiable assets of your customer.

This Special Notarial Bond protects your interests while allowing your customer to keep their assets — for example, machinery — right where they are. They stay operational, producing income, while the Special Bond creates a deemed pledge giving you valuable security against other creditors, landlords, and insolvency. Think of it as a special gadget in your financial toolkit. (with consideration to be given to the difference between Special and General Notarial Bonds, preferred rights of creditors etc).

The best part? It’s all about timing. The earlier you secure that Bond, the higher you’re ranking against competing claims. So, why wait? Register fast and secure your spot — because, in this line of work, timing is everything.