LegalizeS.I. No. 27/1987 - Building Societies Regulations, 1987
This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.
1 amending act · 1987-12-21, S.I. No. 339/1987 - Building Societies Regulations, (Amendment) Regulations, 1987
S.I. No. 27 of 1987.
BUILDING SOCIETIES REGULATIONS, 1987.
The Minister for the Environment in exercise of the powers conferred on him by sections 5 and 10 of the Building Societies Act, 1976 (No. 38 of 1976) and by sections 3 , 6 and 7 of the Building Societies (Amendment) Act, 1986 (No. 36 of 1986) and, as respects Parts II and III, after consultation with the Registrar of Building Societies and, as respects Part II, with the consent of the Minister for Finance, hereby makes the following regulations:—
PART I *Preliminary and General*
1.
These Regulations may be cited as the Building Societies Regulations, 1987.
2.
In these Regulations "the Act" means the Building Societies (Amendment) Act, 1986 .
PART II *Purposes for which loans may be made and related conditions*
3.
This Part shall apply to loans made by a society under section 3 of the Act.
4.
(1) A society which has satisfied the Registrar that, at the end of the last financial year in respect of which its annual accounts have been laid before an annual general meeting of the society, the ratio of its reserves to its assets was not less than 4% may make a loan to a member—
- (a) of an amount not exceeding the amount which the society has agreed to lend to the member on the security of a mortgage of a freehold or leasehold estate or interest in a dwelling, for the purpose of enabling the member to provide the dwelling or to purchase the said estate or interest before the mortgage has been created; or
- (b) for the purpose of carrying out improvement works to a dwelling.
- (2) A society shall take all reasonable steps to ensure that the mortgage referred to in paragraph (a) of sub-article (1) is created as soon as may be after the making of a loan under the said paragraph.
5.
The total amount of loans made by a society pursuant to article 4 shall:
- (a) in any year, not exceed 7½% of the total amount of all loans secured by mortgage made by the society in the immediately preceding year; and
- (b) at any time, not exceed 4% of the total assets held by the society at the end of the last financial year in respect of which its annual accounts have been laid before an annual general meeting of the society.
6.
A society may require a member to provide such security as it may consider appropriate in respect of a loan pursuant to article 4 pending the creation of the mortgage referred to in article 4 (1) (a) or to secure a loan referred to in article 4 (1) (b).
PART III *Rules prescribed under Section 6 of the Act.*
7.
This Part shall apply to the rules of a society in respect of the matters referred to in section 6 (1) of the Act.
8.
The rules set out in the First Schedule to these Regulations are hereby prescribed generally as respects societies.
PART IV *Rules relating to appointment etc. of board of directors.*
9.
This Part shall commence on the 1st day of March, 1987 and shall apply to the rules of a society relating to the board of directors of the society and the rules prescribed in this Part shall be rules to which section 7 of the Act applies.
10.
The rules set out in the Second Schedule to these Regulations are hereby prescribed generally as respects societies.
Article 8
FIRST SCHEDULE
I Redemption of Loans
A member may at any time before the time agreed repay to the Society the whole or any part of a loan and shall not be liable to pay any sum in addition to principal and any interest due on such principal (without regard to the fact of the redemption of the loan) at the time of redemption of the whole or part of the loan.
II Valuation Reports
- (a) Where the Society gives approval to the making of a loan (other than a loan pursuant to article 4 of the Building Societies Regulations, 1987), the member shall, at the same time as he is notified of the Society's approval, be furnished with a copy of the report made under section 79 (1) (b) of the Building Societies Act, 1976 relating to the value of any security for the loan.
- (b) There shall be attached to or included in every valuation report furnished to a member in accordance with this rule a note stating clearly the nature and purpose of the report.
III Insurance of Mortgaged Property
Any insurance which the Society may require a member to effect or maintain on property mortgaged to the Society may be effected or maintained by the member with any insurer, and through any agency or any intermediary, and each such member shall be notified in writing beforehand that the insurance may be so effected or maintained.
IV Costs of legal investigation of title
Any costs incurred by the Society in respect of, arising from or in connection with the legal investigation of title to any property offered as security by a member shall be paid by the Society and shall not be recoverable from the member either as a fee specifically stated to be in respect of such costs or as part of any fee charged in respect of the loan.
V Mortgage protection Insurance
- (a) The Society shall arrange, through an insurer or an intermediary nominated by it, a life assurance policy providing, in the event of the death of a member before a loan made by the Society on or after the 1st day of January 1988 (other than a loan pursuant to article 4 of the Building Societies Regulations, 1987) has been repaid by the member, for payment of the amount outstanding at the time of such death on the loan made to the member and such sum shall be employed to redeem the loan. A policy referred to in this rule shall apply as respects all members to whom a loan is made other than a class of members who by reason of age or health would not be acceptable by the insurer or intermediary as a class to whom the policy would apply.
- (b) A policy for the purpose of this rule shall be applicable in respect of each member to whom the policy applies without any requirement for medical examination.
- (c) It shall be a condition of any loan (other than a loan pursuant to article 4 of the Building Societies Regulations, 1987) to the making of which the Society, after the coming into operation of a policy for the purpose of this rule, has given approval, that the member to whom the policy applies shall at the same time as he makes his loan repayments, make such payments as may be required in respect of the premium on the policy.
- (d) A policy for the purpose of this rule may, at the discretion of the society, provide for benefits in the event of the disability of a member to whom the policy applies and any such benefits shall be employed in meeting the repayments from time to time due under the mortgage or to redeem the loan.
Article 10
SECOND SCHEDULE
VI Eligibility and Nomination of Directors
- (a) The Society shall publish, in at least two daily newspapers published in the State and circulating in the area in which the chief office of the Society is situated, a notice stating the last date for the receipt of nominations of members for appointment at the next annual general meeting as Directors of the Society and such notice shall be published not earlier than 42 days and not later than 21 days before such date.
- (b) The number of members nomination by whom is required for eligibility for appointment as a Director shall not exceed ten.
- (c) The value of any shares which may be required to be held by a member nominating another member for appointment as a Director shall not exceed £10.
- (d) The value of any shares which may be required to be held by a Director or which may be required to be held by a member who is a candidate for appointment as a Director shall not exceed £500.
- (e) The amount of any deposit which may be required to be lodged with the Society by a member who is a candidate for appointment as a Director shall not exceed £100.
- (f) A member who has attained the age of 70 years shall not be eligible to be appointed as a Director at a meeting of the Society unless he has been approved as eligible for appointment by resolution of the Board and a statement setting out his age and the reasons for the Board's approval of his eligibility have been sent to each member entitled to vote on the appointment together with the other documents being sent to members in connection with the meeting at which the appointment is to be made.
- (g) A member who has attained the age of 70 years shall not be eligible to be appointed as a Director by co-option by the Board.
VII Election address
- (a) Where not later than seven days after the closing date for nominations, a duly nominated candidate for election as a Director of the Society furnishes the Society with an election address of not more than 300 words, subject to paragraph (b), the Society shall send a copy of the address to each member who is entitled to vote at the election together with the other documents being sent to members in connection with the meeting at which the election is to be conducted.
- (b) Paragraph (a) shall not require the Society to send copies of an address to members in any case where, in the opinion of the Board of the Society—
- (i) publicity for the address would be likely to diminish substantially the confidence in the Society of investing members or the public; or
- (ii) the address is vexatious or frivolous or does not relate to the affairs of the Society or to the candidature of the member.
- (c) Where the Society refuses to circulate an address to which this rule refers, the Society shall, within seven days after the receipt of the address notify the member who furnished it of such refusal and the grounds for the refusal and the said member may within seven days of the refusal refer the refusal to the Registrar who may direct the Society to comply with the request subject to such conditions or deletions as the Registrar may require.
VIII Election of Directors
Where at a meeting there is a contest for the office of Director and a poll is to be taken in accordance with the Rules, the papers issued by the Society for the purposes of or relating to the poll shall snow with equal prominence the name of each candidate. The names shall be arranged alphabetically in the order of the surnames, or, if there are two or more candidates bearing the same surname, in the alphabetical order of their other names together with such information as will distinguish such candidates.
IX Retirement of Directors
- (a) One third or the nearest number thereto of the Directors (not including a Director who is a managing Director) shall retire at each Annual General Meeting (in addition to any Directors retiring under paragraphs (b) and (c)) and such Directors shall be eligible for re-appointment without nomination subject to the requirements of the Rules. The Directors to retire shall be those who have been longest in office since their last election but, as between those who became Directors on the same day, those to retire shall (unless they otherwise agree between themselves) be decided by lot. A retiring Director shall remain in office until the conclusion of the Annual General Meeting at which he retires.
- (b) A Director co-opted by the Board shall retire at the next Annual General Meeting following his appointment, but shall be eligible for re-appointment without nomination subject to the requirements of the Rules.
- (c) A Director who has attained the age of 70 years shall, subject to any other provision of the Rules requiring earlier retirement, retire at each subsequent Annual General Meeting. A Director who retires by reason of age shall be eligible for re-appointment without nomination subject to the requirements of the Rules.
GIVEN under the Official Seal of the Minister for the Environment this
28th day of January, 1987.
JOHN BOLAND,
Minister for the Environment.
The Minister for Finance hereby consents to Part II of the foregoing Regulations.
GIVEN under the Official Seal of the Minister for Finance this 28th day
of January, 1987.
JOHN BRUTON,
Minister for Finance.
EXPLANATORY NOTE.
These regulations provide building societies with new lending powers and prescribe certain rules on the operation of societies.
| Part II | enables societies fulfilling specified requirements to make loans, not secured by a mortgage, to facilitate the purchase or improvement of a dwelling. |
| Part III | prescribes for societies generally rules in relation to redemption fees, valuation reports, property insurance, legal costs and mortgage protection insurance. |
| Part IV | prescribes for societies generally rules in relation to the appointment and retirement of directors. |
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