BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 28 Security taken from third party.

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BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 28

Security taken from third party.

28.(1) This section applies to any advance made by a building society to one
of its members (in this section referred to as "the borrower") for the purpose
of its being used in defraying the purchase price of freehold or leasehold
estate, where the society takes any security for the advance from another
person, but does not apply to such an advance made to an individual where the
only security taken for the advance from a third party is a guarantee given by
an individual, not being a guarantee secured by a charge on any property.

(2) Except by leave of the court, no sums shall be recoverable, either by the
building society or by any other person, in respect of an advance to which
this section applies, or in respect of any security given for such an advance,
whether by the borrower or otherwise, and no rights shall be exercisable by
virtue of any such security, unless, before any contract requiring
the borrower to repay the advance is entered into, the society gives to
the borrower a notice fulfilling the requirements of subsection (3).

(3) The said requirements are that the notice is in writing and in the
prescribed form and

(a)states the amount of the basic advance and of the excess advance, if any;
and

(b)contains such particulars as may be prescribed relating to any security for
the advance which is taken or is to be taken from any person other than
the borrower,

(4) Where a building society makes an advance to which this section applies
without giving notice to the borrower in accordance with the provisions of
subsection (2), the court may, either on an application for leave for the
purposes of that subsection, or on an application made by the borrower,
re-open the transaction, and may make such orders as to the sums which may be
recovered in respect of the advance and in respect of any security given for
it, as to the exercise of any rights conferred by any such security, and
otherwise, as the court considers just.

(5) In this section "the court", in relation to a transaction in which the
advance has not at any time exceeded [#2,000], means the county court, and, in
relation to any other transaction, means the High Court.

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Northern Irish Legislation

BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 28