The Gazette 1976

GAZETTE

January-February 1976

Generally speaking, the Legislation proposed by the Bill is welcome and timely. The protection of the public who invested money in Building Societies was a major concern of all interested in the movement and the ser- vice thereby for Members and Borrowers from the Society is self evident. There are some controversial proposals envisaged by the Bill particularly the powers vested in the Minister for Local Government and the Minister for Finance enabling the Ministers in certain circumstances whenever the Ministers consider it exped- ient, in the interests of the orderly and proper regula- tion of Building Society business and having regard to the demand for loans for home purchase and the finan- cial needs of the national housing programme. The affects of the Section in the Bill would appear to give to the Minister virtual control of the Building Society movement and its activities if and when the M inister in conjunction with the Minister for Finance considers it expedient to do so. As to whether this is in the best interests of the Building Society movement one must await developments and the operation of the Sec- tion and the Regulations made thereunder. The question as to whether borrowing members, or as they are usually called advanced members, of a Society should in fact be given membership status appears to be a matter entirely for the Rules of each individual Society, and in any event advanced mem- bers even though they may have a right under the Rules to attend General Meetings they would appear at most to have a voice only but no vote.

There appears to be no particular advantage so far as advanced members are concerned in being members of the Society as all their rights and obligations are merged in the Mortgage Contract itself, coupled with the Rules of the Society relevant to such Mortgage Contract, insofar as such Rules are referred to and incorporated in the Mortgage Contract. There is one final problem, namely the inspection of Mortgage Contracts in respect of completed premises for audit purposes at the end of each financial year, and it appears to be a formidable if not an impossible task from the point of view of Auditors having regard to the non-availability of such Contracts in Land Registry cases which now constitute a very big percen- tage of Building Society lending. Another provision of some consequence is the appli- cation of Section 45, Land Act 1965, which for some reason does not constitute Building Societies qualified persons like Banks and other Institutions referred to in that Section, thereby eliminating the expense and trouble of making Returns to the Land Commission under that particular Section on the usual quarterly basis in pursuance of general consents and adminis- trative costs thereby involved. The above is a general summary of the main provi- sions of the Bill and for further detail, reference should be made to the Bill itself and in particular to the very full and detailed explanatory Memorandum published along with the Bill. PROFESSIONAL FEES FOR R.T.A. PROCEEDINGS ARISING OUT OF ROAD ACCIDENTS as agreed with the Accident Offices Association 1. In the opinion of the Society £10.50 is the minimum proper fee which should be accepted by a member of the Society where written instruc- tions are given for either: (a) attending at a coroner's inquest, or (b) attending a court of summary jurisdiction to defend any proceedings under Sections 52 or 53 of the Road Traffic Act 1961 as amended by Sections 50 and 51 of the Road Traffic Act 1968, or (c) attending to observe such proceedings pro- vided that where proceedings are conducted in a town other than the town where the Solicitor has his principal office, there should be a reasonable addition for time and travelling expenses. 2. Where a report of the proceedings is required the minimum fee for the report should be £15.75. A report should contain the names of witnesses, a summary of the evidence of each, the decision of the Court and an appreciation of the effect of the evidence on the question of civil liability for damages. 3. The minimum fee does not apply in cases of exceptional difficulty or responsibility. Reasonable additional fees should be paid in such cases. 9

DEBT COLLECTION COSTS The Council of the Law Society has recommended the following scale of costs in relation to debt collections:—

10°/

up to £500 £500—£2,500

5%

By negotiation £2,500—upwards The necessity of making the arrangement in advance is emphasised.

BUILDING SOCIETY UNDERTAKINGS— Indemnity re Registered Land In Requisitions on Title to a member, a Building Society Solicitor included the following: an Under- taking was required from the purchaser that he would indemnify the mortgagee (The Building Society) and their solicitors against the consequences of non- registration, should registration be refused by the Land Registry for any reason whatsoever. Member, who was acting for the purchaser, objected to this requisition, and sought advice from the Council. In another case, a member, solicitor for the pur- chaser was required by a Building Society Solicitor to complete all the relevant Land Registry transactions relating to the title within 40 days. The Council disapproves of both of these practices.