SCHEDULES

C1C2 SCHEDULE 2 Establishment, Incorporation and Constitution of Building Societies

Annotations:
Modifications etc. (not altering text)
C1

Sch. 2 modified (3.1.1995) by 1994 c. 40, ss. 17(3), 82(2)

C2

Sch. 2 applied (with modifications) (7.4.2010) by The Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188), arts. 1(2), 8

Part I General

Membership

5

F11

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.

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—

    1. a

      in respect of a loan which is fully secured on land; or

    2. b

      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;

  • “shareholding member” 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.