BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967

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BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 21



21.(1) In this Act "special advance" means an advance made by a
building society on the security of freehold or leasehold estate, being an
advance of one of the following descriptions, that is to say

(a)an advance of any amount to a body corporate;

(b)an advance of a sum exceeding seven thousand pounds, or such other sum as
may be prescribed under this section, to a person other than a body corporate;

(c)an advance of any amount to a person other than a body corporate, being a
person who, after the advance is made to him, is indebted to the society in an
amount exceeding the limit in force for the purposes of this paragraph.

(2) For the purposes of subsection (1)(c), the amount by which a person is
indebted to a building society after the making of an advance shall be
ascertained so as to take into account both that advance and all other debts
of any description (whether immediately repayable or not) in which he is
indebted to the society, and shall be so ascertained both

(a)immediately after the making of the advance; and

(b)at the end of a period of three months beginning with the date of the
advance or (if sooner) at the end of the financial year in which the advance
was made.

(3) In relation to an advance made to a person by a building society, he shall
be taken, for the purposes of subsection (1)(c), to be indebted to the society
in an amount exceeding the limit in force for those purposes if either

(a)the amount of his indebtedness to the society, ascertained in accordance
with subsection (2) at the time mentioned in paragraph (a) thereof, exceeds
fourteen thousand pounds and, where the advance is one in relation to which a
sum is prescribed under this section, exceeds twice the sum so prescribed, or

(b)the amount of his indebtedness to the society, ascertained in accordance
with subsection (2) at the time mentioned in paragraph (b) thereof, exceeds
seven thousand pounds and, where the advance is one in relation to which a sum
is prescribed under this section, exceeds the sum so prescribed.

(4) The registrar may, by an order made with the consent of the Ministry,
prescribe under this section a sum exceeding seven thousand pounds in relation
to advances made by building societies in any financial year beginning on or
after the date of the coming into operation of the order.

(5) An order made under this section shall be subject to affirmative
resolution.

(6) For the purposes of this section, and of sections 22 to 24, any
transaction to which a building society is a party whereby the mortgagor's
interest under a mortgage securing an advance made by the society is, subject
to the mortgage, transferred from one person to another shall be treated as an
advance made by the society to that other person of an amount equal to the
amount of the mortgage debt remaining unpaid immediately after the transfer,
together with any arrears of interest then outstanding.

(7) An advance made jointly to two or more persons shall, for the purposes of
this Act, be taken to be a special advance if an advance of the like amount
made under the like conditions to any one of those persons would be a
special advance in accordance with the preceding provisions of this section.

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Northern Irish Legislation

BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 21