BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 26 Additional security for advances.

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BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 26

Additional security for advances.

26.(1) In determining the amount of an advance made by a building society to
any of its members on the security of freehold or leasehold estate, the
society shall not have power to take into account the value of any
additional security taken by the society for the advance, except security of a
class specified in Schedule 3.

(2) Where a charge on a policy of life assurance is taken as
additional security for such an advance, the value of the policy shall be
assessed at an amount not exceeding the surrender value of the policy at the
time when the advance is made.

(3) Where a guarantee given in pursuance of a continuing arrangement is taken
as additional security for such an advance, the advance shall not exceed the
amount of the purchase price for the defraying of which the advance is made,
the basic advance shall not exceed eighty per cent. of that amount, and the
excess advance shall not exceed twenty per cent. of that amount.

(4) The provisions of Schedule 4 shall have effect for the purposes of this
section.

(5) The registrar may, by order made with the consent of the Ministry, amend
Schedule 3 and Schedule 4 for the purpose of extending the classes of
additional security specified in the said Schedule 3, and shall have power to
include in an order under this subsection such transitional, supplemental and
incidental provisions as appear to him necessary or desirable.

(6) References in this Part to a member of a building society

(a)include references to a person who has succeeded to any of the rights or
liabilities of a member of the society; and

(b)in relation to anything done or to be done before the making of an advance,
include references to a person who is a member of the society when the advance
is made.

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Northern Irish Legislation

BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 26