FRIENDLY SOCIETIES ACT (NORTHERN IRELAND) 1970 - SECT 42 Loans of surplus funds to registered society or branch of different description.

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FRIENDLY SOCIETIES ACT (NORTHERN IRELAND) 1970 - SECT 42

Loans of surplus funds to registered society or branch of different description.

42.(1) Subject to the provisions of this section and of section 43, a
registered society or branch (other than a benevolent society or branch
thereof) may, if its rules so provide, make advances by way of loan to a
registered society or registered branch of a society which is not of the same
description and may take such part in the government and control of the
society or branch to which any such advance is made or agreed to be made as
may be provided by the rules of that society or branch.

(2) An advance shall not be made by a society or branch by virtue of this
section unless the value of its assets showed a surplus over the amount of its
liabilities according to the last valuation under section 34 or, in the case
of a society or branch of which the assets and liabilities are not valued
under that section, according to its last annual return under section 36; and

(a)no advance shall be so made to an amount greater, with any amounts
outstanding in respect of previous advances so made, than the amount for the
time being unapplied of that surplus;

(b)for any purpose other than the purposes of paragraph (a), in determining
the amount so unapplied there shall be deducted any amounts outstanding in
respect of advances so made after the date to which the valuation or return
relates.

(3) An advance under this section may be interest free.

(4) For the purposes of this section a society or branch shall be deemed to be
of the same description as another society or branch if, but only if, they are
both registered by virtue of the same paragraph of section 1(1) and, where
each of them is a specially authorised society, they are both established for
the same purpose or purposes.

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Northern Irish Legislation

FRIENDLY SOCIETIES ACT (NORTHERN IRELAND) 1970 - SECT 42