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GAZETTE

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.

January-February 1976

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.

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

5%

£500—£2,500

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.

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.

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