BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967

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BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 25



25.(1) It shall be the duty of every director of a building society to satisfy
himself that the arrangements made for assessing the adequacy of the security
to be taken in respect of advances to be made by the society are such as may
reasonably be expected to ensure that

(a)the adequacy of any security to be so taken will be assessed either by the
directors of the society or by a director or other officer of the society who
is competent to make the assessment, and

(b)there will be made available to every person who has to assess the adequacy
of any security to be so taken an appropriate report as to the value of any
freehold or leasehold estate comprised in the security and as to any matter
likely to affect the value thereof.

(2) In subsection (1)(b) the reference to an appropriate report, in relation
to any freehold or leasehold estate, is a reference to a written report
prepared and signed by a competent and prudent person who

(a)is experienced in the matters relevant to the determination of the value of
the estate, and

(b)is for the purposes of that paragraph not disqualified by virtue of the
following provisions of this section for reporting on that estate.

(3) Subject to subsection (4), a person who is a director or the manager or
secretary of a building society shall for the purposes of subsection (1)(b) be
disqualified for reporting on any freehold or leasehold estate comprised in
security to be taken by the society in respect of any advance.

Subs.(4) spent

(5) A person to whom a building society has made, or undertaken to make, a
payment for introducing to the society an applicant for an advance shall for
the purposes of subsection (1)(b) be disqualified for reporting on any
freehold or leashold estate comprised in security to be taken by the society
in respect of any advance to be made to the applicant on that application.

(6) Where an advance is to be made by a building society following a
disposition of freehold or leasehold estate which is comprised in security to
be taken for the advance, any person having a financial interest in the
disposition of that freehold or leasehold estate, and any person receiving a
commission or gift for introducing the parties to the transaction involving
that disposition, shall for the purposes of subsection (1)(b) be disqualified
for reporting on that estate.

(7) A director of a building society who fails to carry out his duty under
subsection (1), and any person who prepares a report on any estate with
respect to which he is for the purposes of paragraph (b) of that subsection
disqualified for reporting thereon, knowing or having reason to believe that
the report will be used or is likely to be used for the purposes of that
paragraph, shall be liable on summary conviction to a fine not exceeding two
hundred pounds or to imprisonment for a term not exceeding six months.

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Northern Irish Legislation

BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 25