GAZETTE
January-February 1976
having regard to the demand for loans for house pur-
chase and the financial needs of the housing programme,
he may subject to the consent of the Minister for
Finance make Regulations in relation to the purposes
and amounts of loans by Societies and the conditions
subject to which such loans may be made. This Section
is also likely to be controversial delimiting as it does the
powers of the Societies in the conduct of their business.
Sections 76 and 77 in conjunction with Section 5 vest
in the Minister virtual control of the Building Societies
and their activity and, unlike the English Building Soci-
eties Act of 1962 which spells out the Statutory limita-
tions in detail, these Sections, as contemplated by the
Bill, will enable the Minister to control the affairs and
activities of Building Societies, their lending policy, the
rates of interest on loans, the amount of advances and
also all other matters relevent to national housing
policy.
As to how these Sections will in fact operate would
be mere speculation and the future of the Building
Society movement will in the final analysis depend on
the confidence shown in it by the people as an attractive
investment, giving a realistic return with security and
ease of withdrawal.
Th e Bill provides certain criteria which must be
observed as security for loans on freehold and leasehold
Estates and the valuation of the security for loans.
Provision is made in the Bill to continue the prohi-
bition of Building Societies from making advances on
the security of freehold or leasehold Estate which is
subject to a prior Mortgage unless the prior Mortgage
is in favour of the Society making the loan (Section 80).
There is an interesting provision in the Bill at Section
82 which lays down strict Rules for Societies to account
to the Mortgagor after the realisation of a Mortgage
within twenty-one days from the completion of the sale.
Strangely enough no mention is made of puisne incum-
brancers in the Section and the liability of the Societies
to account to second and subsequent Mortgagees who
may be entitled to the surplus rather than the Mort-
gagor. This particular Section appears to be based on
Section 36 of the English Building Societies Act, 1962,
and there is a Sub-section in the English Act which
would appear to give some authority to Building Soci-
eties to account as Mortgagees in possession realising the
property to see that the rights of puisne incumbrancers
are protected.
There appears to be no specific provision in the Sec-
tion or in the English Section enabling Societies to lodge
the proceeds of sale in Court under the provisions of
the Trustee Act. It may well be that this right exists and
express power to a Building Society would be very
helpful to Societies, where difficult problems between
contending puisne incumbrancers arise and in cases
where liability is challenged by the Mortgagor.
The Societies are bound to keep a record of all loans
and all other relevant details in connection with the
making of advances (Section 83).
Section 84 provides for the operation of a receipt
under the seal of the Society in lieu of a re-Conveyance
both in registered and in unregistered land in like man-
ner, as heretofore operated, under the provisions of
Section 42 of the 1874 Act (Section 84).
By way of general comment a number of provisions
in the Bill bring Building Societies into line with the
relevant provisions in the Companies' Act, 1963, and in
this connection reference should be made to the expla-
natory memorandum published with the Bill.
We now pass to Part 7 of the Bill which is the final or
tidying up part of the Bill dealing with miscellaneous
••ems. This part of the Bill provides that the Registrar
8
of Friendly Societies shall for the purposes of the Act
be the Registrar of Building Societies as well (Section
85). Further provision is made to enable the Minister
for Finance to make moneys available to Building Soci-
eties by borrowing on foot of a Guarantee by that
Minister of such borrowings, so that the total
amount outstanding of any moneys, the repayment of
which is guaranteed under the relevant Section, does not
exceed twenty million pounds. Further provision is made
that any moneys advanced under such a Guarantee
must be paid within a two-year period.
Section 87 : Provision is made that the financial year
for the Building Societies shall be ended on the 31st
December, and that all existing accounting dates be
brought into line within a period of eighteen months.
Section 88 : The usual provision is made that a
Certificate of Incorporation or registration or other
document relating to a Society purporting to be signed
by the Registrar shall in the absence of any evidence to
the contrary be deemed to have been signed by the
Registrar and shall be received in evidence accordingly
and also that a printed document purporting to be a
copy of the Rules of the Society and certified by an
Officer of the Society, to be a true copy of its regis-
tered Rules, shall, in the absence of any evidence to the
contrary, be deemed to be a true copy of its Rules and
shall be received in evidence accordingly.
Section 91 of the Bill makes provision for the exemp-
tion from stamp duties but this does not apply of course
to Mortgages in excess of the £10,000,00 limit at the
present time. Further provision is made in this part of
the Bill for the punishment of offences and the breach
of the Act and also provision in relation to Judgments
against the Societies, the suspension and cancellation of
registrations and the winding-up thereof, based on the
provisions applicable under the Gomapnies Act, 1963.
The final Section in the Bill is Section 96 which is
a saving Section in respect of all things done and
Instruments created under the repealed Legislation set
out in the Schedule to the Act.
SAINT LUKE'S CANCER
RESEARCH FUND
Gifts or legacies to assist this Fund are most
gratefully recived by the Secretary, Esther
Byrne, at "Oakland", Highfield Road, Rathgar
Dublin 6. Telephone 976491.
This Fund does not employ canvassers or
collectors and is not associated with any
other body in f und raising.