Not every business owns land or buildings. But nearly every business owns movable assets with real commercial value — vehicles, machinery, stock, intellectual property, or even shares. In South Africa, a notarial bond allows a creditor to take security over these movable assets, enabling businesses to unlock financing without disposing of the assets they need to operate.
But what exactly counts as "movable property" for these purposes? And which assets work best under a special notarial bond versus a general notarial bond? This guide covers every major asset category — with practical guidance on how to describe them correctly so your bond holds up when it matters.
What Qualifies as Movable Property?
In South African law, property is classified as either immovable (land and buildings permanently attached to the land) or movable (everything else). The Security by Means of Movable Property Act 57 of 1993 governs the use of movable property as security, and notarial bonds are the primary instrument for creating that security.
The Legal Test
- Movable property is any corporeal or incorporeal thing that is not immovable. If it can be moved, sold separately from land, or exists as a right — it is likely movable.
- Corporeal movables are physical objects: vehicles, equipment, livestock. Incorporeal movables are rights and intangible assets: shares, intellectual property, book debts.
- The debtor must own the asset at the time of the bond registration. You cannot bond over property belonging to a third party.
The categories below cover the full spectrum of assets eligible for notarial bond security — from the everyday to the specialised.
Categories of Movable Property
The range of assets that can be secured under a notarial bond is remarkably broad. Below are the ten principal categories, with guidance on how each is typically handled in practice.
1. Vehicles & Transport
Cars, trucks, buses, trailers, and construction vehicles. Fleet financing is one of the most common uses of special notarial bonds.
- •Registration number and VIN required
- •Make, model, and year of manufacture
- •Engine number for additional specificity
- •Ideal for special notarial bonds
2. Plant, Machinery & Equipment
Manufacturing lines, mining equipment, agricultural implements, construction machinery, and specialised tools.
- •Serial number, make, and model
- •Location where equipment is situated
- •Capacity or rating where applicable
- •Photographs can support identification
3. Office Equipment & Furniture
Computers, servers, networking infrastructure, office furniture, and IT systems. Common in professional services financing.
- •Asset tags or serial numbers
- •Brand, model, and specification
- •Rapid depreciation — consider valuation
- •May suit general bond for bulk items
4. Stock-in-Trade & Inventory
Raw materials, work in progress, and finished goods. Stock is constantly changing — an important consideration for bond type selection.
- •Often better suited to a general bond
- •Describe by category, type, and location
- •Fluctuating value requires monitoring
- •Specific items may warrant special bond
5. Intellectual Property
Patents, trademarks, registered designs, and copyright. Increasingly important as businesses shift toward knowledge-based assets.
- •CIPC registration numbers essential
- •Patent number, class, and filing date
- •Trademark registration certificate
- •Valuation of IP often required
6. Shares & Securities
Listed and unlisted shares, debentures, and other securities. Share certificates and company registration numbers provide identification.
- •Share certificate numbers
- •Company registration number (CIPC)
- •Number and class of shares
- •Consider pledges as alternative security
7. Livestock
Cattle, sheep, goats, game, and other farmed animals. Agricultural financing frequently relies on livestock as movable security.
- •Breed, number, and gender
- •Farm location and camp/kraal details
- •Brand marks and ear tags
- •Numbers fluctuate — general bond often used
8. Aircraft & Vessels
Light aircraft, helicopters, boats, and ships. These high-value assets are well suited to special notarial bonds given their unique registration systems.
- •SACAA registration for aircraft
- •SAMSA registration for vessels
- •Serial number and manufacturer
- •May require specialist valuation
9. Book Debts & Receivables
Amounts owed to the business by its debtors. Can be covered under certain conditions, though cession of book debts is sometimes preferred.
- •Describe by debtor name and amount
- •Or describe as class (all book debts)
- •General bond covers future debts too
- •Cession may offer stronger protection
10. Goodwill
Business goodwill — the intangible value of a going concern's reputation, customer relationships, and market position. Recognised as a movable asset in South African law.
- •Describe by business name and nature
- •Difficult to value — professional appraisal needed
- •Often bonded alongside other assets
- •Value depends on ongoing business operations
Bond Type Selection by Asset
Special Bond (Specific Assets)
Vehicles, named equipment, aircraft, vessels, specific IP registrations, identified shares
General Bond (All Movables)
Stock-in-trade, livestock herds, bulk inventory, book debts, office furnishings
Combined Approach
Special bond over key assets + general bond over remaining movables for maximum protection
Assets That Cannot Be Covered
Notarial bonds are powerful instruments, but they have clear boundaries. Understanding what falls outside their scope is just as important as knowing what they cover.
Excluded Assets
- Immovable property — land, buildings, and fixtures permanently attached to land. Use a mortgage bond instead.
- Assets owned by third parties — the debtor must be the legal owner of the bonded assets.
- Assets under existing security — unless the prior creditor consents to subordination or the new bond ranks behind the existing one.
Insolvency Act Exemptions
- Tools of trade necessary for the debtor's livelihood may be exempt from attachment under the Insolvency Act 24 of 1936.
- Necessary household items — bedding, clothing, and basic furnishings may be protected from execution.
- Pension and provident fund interests are generally not attachable and cannot serve as bond security.
Practical tip: Before bonding over any asset, confirm ownership through supporting documentation — vehicle registration papers, share certificates, CIPC registration extracts, or asset registers. A bond over property the debtor does not own provides no security at all.
Special Bond Asset Descriptions — Getting It Right
For a special notarial bond to be valid and enforceable, the assets must be described with sufficient precision that they can be identified without reference to any external source. If the description is vague or ambiguous, the bond may be declared invalid — leaving the creditor entirely unsecured.
Why Precision Matters
Courts have consistently held that a special notarial bond must describe assets so that a reasonable person can identify them. An insufficiently described asset is treated as if it were not bonded at all — the creditor loses their security position entirely.
Good vs Bad Asset Descriptions
| Asset Type | Insufficient Description | Proper Description |
|---|---|---|
| Vehicle | "One white Toyota truck" | "2023 Toyota Hilux 2.8 GD-6, white, VIN: AHTBB3CD501234567, Reg: CA 123-456, Engine: 1GD-1234567" |
| Machinery | "Printing machine in factory" | "Heidelberg Speedmaster XL 106, S/N: HE-XL106-2024-0891, situated at 14 Industrial Rd, Epping, Cape Town" |
| Shares | "Shares in ABC company" | "10,000 ordinary shares in ABC (Pty) Ltd, Reg: 2020/123456/07, Certificate No. 0045" |
| Livestock | "Cattle on the farm" | "350 Bonsmara cattle, brand mark MJK, situated on Farm Rietfontein 234, Limpopo Province" |
Tips for Different Asset Types
Vehicles
Always include VIN, registration number, make, model, year, and engine number. Cross-reference with the vehicle registration certificate (NaTIS record).
Machinery
Serial number and manufacturer are the minimum. Add model designation, year of manufacture, capacity/rating, and the physical address where situated.
Livestock
Specify breed, approximate number, gender breakdown, brand marks or ear tags, and the farm name with property description. For game, include species.
IP Rights
Use the official registration number from CIPC, the registered title of the patent or trademark, and the registration date. Attach a copy of the registration certificate where possible.
Shares
State the company name, CIPC registration number, number and class of shares, share certificate number, and par value if applicable.
Bonding Over CIPC-Registered Intellectual Property
Intellectual property is one of the most underutilised asset classes for notarial bond security in South Africa. As businesses increasingly derive their value from patents, trademarks, and proprietary technology rather than physical assets, IP-backed financing is growing in importance — yet few lenders and borrowers understand how to structure it properly.
How to Bond Over IP
- Patents: Reference the patent number issued by CIPC (e.g., ZA 2024/01234), the title of the invention, the filing date, and the patent holder's name. A special notarial bond is appropriate since the patent number uniquely identifies the asset.
- Trademarks: Use the trademark registration number, the registered mark (word or device), the classes it covers, and the registration date. Multiple trademarks can be scheduled in a single bond.
- Registered designs: Include the design registration number, the article to which the design applies, and the registration date. Both aesthetic and functional designs registered with CIPC qualify.
- Copyright: While copyright does not require registration in South Africa, it is a movable incorporeal right that can be bonded. Describe by reference to the work, its author, and the date of creation.
Why IP as Security Is Growing
- •Technology companies often hold more value in IP than physical assets
- •South Africa's IP registration system through CIPC provides clear public records
- •International investors increasingly accept IP-backed security
- •Pharmaceutical, biotech, and software sectors particularly benefit
- •Professional IP valuation methodologies are now well established
The key challenge with IP security remains valuation. Unlike a vehicle with a published trade value or shares with a market price, intellectual property requires professional appraisal — and its value can fluctuate significantly based on market conditions, competing technologies, and regulatory changes. Creditors should insist on independent IP valuation and consider regular revaluation clauses in the loan agreement.
Choosing the Right Assets for Your Notarial Bond
The breadth of assets that can be secured under a notarial bond gives South African businesses genuine flexibility in structuring their financing. From fleet vehicles and factory equipment to patents and business goodwill, movable property represents a significant — and often underleveraged — source of security.
The critical factor is not just what you bond, but how you describe it. Proper asset identification in the bond document is the difference between enforceable security and an empty promise. Work with a qualified notary public who understands both the legal requirements and the commercial realities of your assets.
Need a Notarial Bond Over Your Business Assets?
Whether you are securing vehicles, equipment, intellectual property, or a combination of assets, MJ Kotze Inc can draft and register the right notarial bond for your financing needs.