7(1)The Building Societies Act 1986 shall be amended as follows.
(2)In section 10(5) for “borrower” there shall be substituted “mortgagor”.
(3)In section 11(7), after “(2)(b)” there shall be inserted “or (2)(ba)(i) or (ii)”.
(4)In section 13(2), at the end there shall be inserted—
“(e)where the advance is to be made in connection with a disposition of other land to the borrower, any person having a financial interest in the disposition of the other land and any director, other officer or employee of his or of an associated employer; and
(f)where the advance is to be made in connection with a disposition of other land to the borrower, any person receiving a commission for introducing the parties to the transaction involving the disposition and any director, other officer or employee of his.”
(5)In section 13(3)—
(a)after “following a disposition of the land” there shall be inserted “or in connection with a disposition of other land to the borrower”, and
(b)in paragraph (a), the words “of the land” shall be omitted.
(6)In section 119(1), there shall be inserted at the appropriate place in alphabetical order—
““advance secured on third party land” has the meaning given by section 10(4A);”.