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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