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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the basics of security for finance 
SAQA US ID UNIT STANDARD TITLE
13416  Demonstrate knowledge and understanding of the basics of security for finance 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for all learners in the field of mortgage finance as it provides an introduction to the application of concepts, terms, and legislation relevant to securities in the context of mortgage finance.

Persons credited with this unit standard will be able to demonstrate knowledge and understanding of the principles related to security, requirements for legally binding security documentation, contractual capacity of individuals and non-individuals. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
There is open access to this unit standard. Learners should be competent in Communication at level 3. 

UNIT STANDARD RANGE 
N/A 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Demonstrate knowledge and understanding of the principles related to security 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The concept of what security is and why it is required in relation to advancing finance is explained in own words with the use of examples according to general financial principles and general banking policy and practice. 

ASSESSMENT CRITERION 2 
2. The characteristics of good security are explained according to general financial principles and general banking policy and practice. 

ASSESSMENT CRITERION 3 
3. The different types/ forms of security are identified and defined/ explained according to the basic legal definition and the general banking policy and procedure. 
ASSESSMENT CRITERION RANGE 
Cessions, pledge, guarantee, surety-ship, mortgage bond, notarial bond. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The basic terminology associated with security is explained according to the common legal definition of the parties. 
ASSESSMENT CRITERION RANGE 
The different parties to the documents cessions, pledge, guarantee, surety-ship, mortgage bond, notarial bond. Evidence of competence across the full range is required.
 

SPECIFIC OUTCOME 2 
Demonstrate an understanding of the requirements for legally binding security documentation 
OUTCOME NOTES 
Demonstrate a knowledge and understanding of the requirements for legally binding security documentation. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The different types of security forms/ documentation are identified. 
ASSESSMENT CRITERION RANGE 
Cessions, pledge, guarantee, surety-ship, mortgage bond, notarial bond. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The requirements for valid security documentation are understood and explained according to basic legal requirements and general banking policy and practice. 

ASSESSMENT CRITERION 3 
3. A set of security documents, are completed according to the requirements for valid security documentation. 

ASSESSMENT CRITERION 4 
4. A completed set of security documents, are evaluated against the requirements for valid security documentation. 

ASSESSMENT CRITERION 5 
5. The legal and financial implications to the financier of errors in security documentation are understood and explained with the use of examples according to general banking policy and practice. 

SPECIFIC OUTCOME 3 
Demonstrate knowledge and understanding of the contractual capacity of individuals 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The different kinds of individual borrowers are identified and defined according to their legal contractual capacity. 
ASSESSMENT CRITERION RANGE 
Minors, majors, married people, insolvent and incapacitated individuals.
 

ASSESSMENT CRITERION 2 
2. The requirements for contracts with a minor are explained according to the legal requirements of contractual capacity. 

ASSESSMENT CRITERION 3 
3. The conditions under which mutual consent of married people is required is identified and explained according to the legal requirements for contractual capacity. 

ASSESSMENT CRITERION 4 
4. The special considerations relating to the contractual capacity of insolvent individuals is understood and explained according to the legal requirements of contractual capacity. 

ASSESSMENT CRITERION 5 
5. The special considerations relating to the contractual capacity of incapacitated individuals is understood and explained according to the legal requirements of contractual capacity. 

ASSESSMENT CRITERION 6 
6. The impact of contractual capacity of the individual on the validity of security documentation is explained according to the legal implications and requirements. 

SPECIFIC OUTCOME 4 
Demonstrate knowledge and understanding of the contractual capacity of non-individuals 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The different kinds of non-individual borrowers are identified and defined according to their legal contractual capacity. 
ASSESSMENT CRITERION RANGE 
Partnerships, close corporations, companies, trusts. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 2 
2. The parties legally able enter into a contract on behalf of a non-individual are identified and their role explained according to basic legal requirements. 

ASSESSMENT CRITERION 3 
3. The information and documentation required to establish contractual capacity of non-individuals is identified and explained according to the basic legal requirements. 

ASSESSMENT CRITERION 4 
4. The information and documentation required to contract/sign security documentation with non-individuals is identified and explained according to general banking policy and practice in contracting with non-individuals. 

ASSESSMENT CRITERION 5 
5. The impact of contractual capacity of non-individual's on the validity of security documentation is explained according to the legal implication and requirements. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1 Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2 Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3 Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
The knowledge acquired in this standard relates to an understanding of the principles and documents related to security documentation. This includes who can sign documentation and what is required to validly bind an asset to the bank as a form of security for a loan. The criteria against which this knowledge is evaluated are expressed in the standard. 

UNIT STANDARD DEVELOPMENTAL OUTCOME 
N/A 

UNIT STANDARD LINKAGES 
N/A 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
In this standard the learner demonstrates the ability to identify and solve problems when the legal and financial implications to the financier of errors in security documentation are understood and explained with the use of examples according to general banking policy and practice. 

UNIT STANDARD CCFO COLLECTING 
In this standard the learner demonstrates the ability to collect, organise and critically evaluate information when a completed set of security documents, are evaluated against the requirements for valid security documentation. 

UNIT STANDARD CCFO CONTRIBUTING 
In this standard the learner demonstrates the ability to understand and explain the relationship between what security is and why it is required in relation to advancing finance with the use of examples according to general financial principles and general banking policy and practice. 

UNIT STANDARD ASSESSOR CRITERIA 
N/A 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

UNIT STANDARD NOTES 
Additional information:

Legal requirements:

All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Core  57901   Further Education and Training Certificate: Credit Management  Level 4  NQF Level 04  Reregistered  2023-06-30  FASSET 
Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 
Elective  49021   Further Education and Training Certificate: Debt Recovery  Level 4  NQF Level 04  Reregistered  2023-06-30  FASSET 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
NONE 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.