Modifications etc. (not altering text)
C1Sch. 2 modified (3.1.1995) by 1994 c. 40, ss. 17(3), 82(2)
C2Sch. 2 applied (with modifications) (7.4.2010) by The Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188), arts. 1(2), 8
5[F1(1)The rules of a building society shall provide that no person shall be a member of the society unless he is a shareholding member or a borrowing member or both.U.K.
(2)In this Act, in relation to a building society—
“borrowing member” means, subject to sub-paragraphs (2A) and (2B) and paragraph 29(2) below, an individual who is indebted to the society—
in respect of a loan which is fully secured on land; or
if the rules of the society so provide, in respect of a loan which is (within the meaning of the rules) substantially secured on land;
“” means a person who holds a share in the society.
(2A)If the rules of a building society so provide, an individual shall cease to be a borrowing member at any time if at that time the society—
(a)takes possession of, or exercises its power of sale in relation to, the whole or any part of the land on which the loan is secured; or
(b)obtains an order for foreclosure absolute or, in Scotland, foreclosure in respect of the whole or any part of that land.
(2B)Unless the rules of a building society so provide, an individual shall not be a borrowing member at any time if at that time the loan is owed to the society in equity rather than at law.]
(3)A person who is a minor—
(a)may, if the rules do not otherwise provide, be admitted as a member of a building society and give all necessary receipts; but
(b)may not [F2propose a resolution,] vote or hold any office in the society; and
(c)may not [F3join in requisitioning a special meeting or] nominate, or join in nominating, a person for election as a director of the society.
Textual Amendments
F1Sch. 2 Pt. I para. 5(1)-(2B) substituted for Sch. 2 para. 5(1)(2) (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 2(1), 47(3) (with s. 46(1), Sch. 8 paras. 4, 5); S.I. 1997/2668, art. 2, Sch. Pt. II(b)(aa)(i)(ii)
F2Words in Sch. 2 Pt. I para. 5(3)(b) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 2(2)(a), 47(3) (with s. 46(1), Sch. 8 paras. 4, 5); S.I. 1997/2668, art. 2, Sch. Pt. II(b)(aa)(i)(ii)
F3Words in Sch. 2 Pt. I para. 5(3)(c) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 2(2)(b), 47(3) (with s. 46(1), Sch. 8 paras. 4, 5); S.I. 1997/2668, art. 2, Sch. Pt. II(b)(aa)(i)(ii)