(1)The Corporation shall have power to make loans to a housing society for the purpose of enabling the housing society to meet the whole or any part of any expenditure incurred or to be incurred by the housing society in carrying out its objects.
(2)Any directions given to the Corporation under section 1(2) of this Act with respect to the terms of any such loan shall require the consent of the Treasury and, subject to any such directions, the terms on which any such loan is made shall be such as the Corporation may determine either generally or in any particular case, and may, in particular, include terms for preventing repayment of the loan or any part of it before a specified date without the consent of the Corporation.
(3)The Corporation may, with the consent in writing of the Minister, give to any housing society (whether in connection with a scheme under section 5 of this Act or otherwise) directions with respect to the disposal of any land belonging to the society in which the Corporation have an interest as mortgagee under a mortgage entered into by the society; and where directions under this subsection are given with respect to any land belonging to a housing society, it shall be the duty of the society to comply with the directions so long as the Corporation continue to have such an interest in that land.
Any directions given under this subsection with the consent aforesaid may be varied or revoked by subsequent directions thereunder given with the like consent.
(4)Where, in the case of a housing society the rules of which restrict membership of the society to persons entitled or prospectively entitled (whether as tenants or otherwise) to occupy a house provided or managed by the society, the Corporation propose to give directions to the society under subsection (3) of this section requiring it to transfer its interest in any land to the Corporation or any other person, the Minister shall not consent to the giving of the directions unless he is satisfied that arrangements have been made which, if the directions are given, will secure that the members of the society receive fair treatment in connection with the transfer.
(5)The reference in subsection (1) of this section to expenditure incurred or to be incurred by a housing society in carrying out its objects includes a reference to expenditure incurred or to be incurred by it in acquiring land on which to construct houses or in acquiring houses to be managed by the society, whether after improvement by the society or in the condition in which they are acquired.
(6)In the application of this section to Scotland, for the references to the Minister there shall be substituted references to the Secretary of State.