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The Friendly Societies (Northern Ireland) Order 1985

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Validation of certain contractsN.I.

3.—(1) The provisions of this Article apply to a contract—

(a)which was entered into by an exempt new friendly society in the course of life or endowment business; and

(b)which was so entered into after 3rd May 1966 and before 1st June 1984.

(2) In this Article an “exempt new friendly society” means a friendly society—

(a)which was registered after 3rd May 1966 or which was registered in the period of three months ending on that date but which at no time earlier than that date carried on any life or endowment business; and

(b)the rules of which, on 1st June 1984, provided that the only life or endowment business which the society might carry on was business of a description falling within any of paragraphs (a) to (c) of subsection (2) of section 333 of the [1970 c. 10.] Income and Corporation Taxes Act 1970 or within any two or all three of those paragraphs taken together.

(3) In determining any question as to compliance by an exempt new friendly society with the relevant enactments or as to the validity of any contract to which this Article applies, there shall be disregarded any term of such a contract which is set out otherwise than in—

(a)the registered rules of the society; or

(b)a policy document issued by the society to the member concerned.

(4) In paragraph (3) “the relevant enactments” means—

(a)subsections (3)(a) and (3A) of section 1 of the [1970 c. 31 (N.I.).] Friendly Societies Act (Northern Ireland) 1970 (societies which may be registered);

(b)paragraphs (a) and (b) of subsection (1) of section 55 of that Act (maximum benefits); and

(c)any enactment which was repealed by that Act and which contained provisions re-enacted in any of the provisions referred to in sub-paragraphs (a) and (b).

(5) In this Article “life or endowment business” has the meaning assigned to it by section 337(2) of the Income and Corporation Taxes Act 1970.

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