Building Societies Act , 1989

(3) (a) A society or any person guilty of an offence under subsection (2), or guilty of an offence under any other provision of this Act for which no penalty is specifically provided, shall be liable—

(i) on summary conviction to a fine not exceeding £1,000 or, at the discretion of the court in the case of an individual, to imprisonment for a term not exceeding 12 months or to both; or

(ii) on conviction on indictment, to a fine not exceeding £10,000 or, at the discretion of the court in the case of an individual, to imprisonment for a term not exceeding 3 years or to both.

(b) If the contravention in respect of which a society or person was convicted under paragraph (a) is continued after the conviction it or he shall be guilty of a further offence on every day on which the contravention continues and for each such offence the society or person shall be liable on summary conviction, to a fine not exceeding £50 or, on conviction on indictment, to a fine not exceeding £1,000, instead of the penalty specified for the original contravention.

(4) Summary proceedings in relation to an offence under this Act may be brought and prosecuted by the Director of Public Prosecutions or the Central Bank.

(5) Notwithstanding section 10 (4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under this Act may be instituted within 3 years from the date of the offence.

(6) Where an offence under this Act committed by a society or other body corporate or by a person purporting to act on behalf of the society or other body corporate is proved to have been so committed with the consent, or connivance of, or to be attributable to, or to have been facilitated by, any neglect on the part of any officer or employee of that society or body, that person shall be guilty of the offence.

120 Furnishing false information, etc.

120.—(1) A person who, in purported compliance with any provision of this Act or any regulation thereunder, provides an answer or explanation, makes a statement or produces, lodges or delivers any return, report, certificate, balance sheet or other document false in a material particular, knowing it to be false, or recklessly provides an answer or explanation, makes a statement or produces, lodges or delivers any such document false in a material particular shall be guilty of an offence.

(2) Where a person is guilty of an offence under subsection (1) and the Court is of opinion that any act, omission or conduct which constituted that offence has—

(a) substantially contributed to a society being unable to pay its debts,

(b) prevented or seriously impeded the orderly winding up of the society, or

(c) substantially facilitated the defrauding of the creditors of the society or creditors of any other person,

that person shall be liable on conviction on indictment to a fine not exceeding £50,000 or to imprisonment for a term not exceeding 7 years or to both.

(3) (a) An officer of a society who destroys, mutilates or falsifies, or is privy to the destruction, mutilation or falsification of any record or document affecting or relating to the property or affairs of the society, or makes or is privy to the making of a false entry therein, shall, unless he proves that he had no intention to defeat the law, be guilty of an offence.

(b) Any such person as is mentioned in paragraph (a) who fraudulently parts with, alters or makes an omission in any such record or document, or who is privy to the fraudulent parting with, altering or making of an omission in any such record or document, shall be guilty of an offence.

(4) Where a person is guilty of an offence under subsection (3) that person shall be liable on conviction on indictment to a fine not exceeding £50,000 or to imprisonment for a term not exceeding 7 years or to both.

121 Judgments against a society.

121.—(1) Whenever a person (in this section referred to as a judgment creditor) obtains in any court a judgment, order or decree against a building society for the payment of a sum of money due to the judgment creditor by the society, the registrar or clerk of the court concerned shall notify the Central Bank as soon as may be of the judgment, order or decree and of its terms and of any appeal against the judgment, order or decree and of the result thereof.

(2) Subject to subsection (3), if within the period of 21 days beginning on the date of the judgment, order or decree, the society does not pay all moneys due (or in the case of costs, at the option of the society, give security therefor in lieu of payment) or satisfy all claims under the judgment, order or decree, the society shall be deemed to be unable to meet its obligations to its creditors and, for the purposes of section 109, to be unable to pay its debts.

(3) If an appeal is instituted in any court against the judgment, order or decree, that court or the court by which the judgment, order or decree was made may by order postpone the application of subsection (2) for such period and, subject to subsection (4), on such terms as the court concerned may fix and specify in the order.

(4) If a court makes an order under subsection (3), it may require the society to which the order relates either, as that court thinks fit, to lodge in court an amount equal to the amount of all moneys due under the judgment, order or decree (or such lesser amount as the court may direct) or to give such security as the court may determine for the payment to the judgment creditor of all such moneys, together with, in either case, such further sum or security for the costs of the appeal as the court shall consider just.

(5) An order under subsection (3) may be varied or revoked by the court that made it or before which an appeal in relation to it is brought.

122 Public file of a society.

122.—(1) The Central Bank shall prepare and maintain at its head office a file relating to each building society, to be known as the public file of the society, and such file shall contain the documents or, as the case may be, the copies of the documents, and the records of the matters directed by or under this Act to be kept in the public file of the society.

(2) Any member of the public shall be entitled to—

(a) inspect the public file of any society having first given reasonable notice, or

(b) be furnished with a copy of all or any of the documents or records kept in the public file of the society on payment of such fee, if any, as may be determined by the Central Bank.

123 Subsidy by Minister in respect of interest on housing loans made by a society.

123.—(1) The Minister may, in accordance with a scheme approved by the Minister for Finance, pay, out of moneys provided by the Oireachtas, a subsidy to a building society in respect of interest payable to the society by a member in respect of a housing loan.

(2) A scheme under this section may, without prejudice to the generality of subsection (1), specify—

(a) a class or classes of persons in respect of which a subsidy may be paid by reference to their financial circumstances,

(b) a class or classes of loans in respect of which the subsidy may be paid, or

(c) a class or classes of houses securing the loan in respect of which the subsidy may be paid.

(3) In this section, “housing loan” includes an outstanding loan secured by a mortgage of freehold or leasehold estate or interest in a house under the repealed enactments.

124 Savings and transitional provisions.

124.—(1) (a) Any order, regulation, rule, agreement, appeal, application, conveyance, decision, lease, loan, mortgage, payment or reference made or any approval, consent or direction given, requirement imposed, certificate or instrument issued, register kept, resolution passed, notice served or any other thing done under any enactment repealed by this Act that could have been made, given, imposed, issued, kept, passed, served or done under a corresponding provision of this Act, shall not be invalidated by any repeal effected by this Act but shall, if in force immediately before that repeal was effected, have effect as if made, given, imposed, issued, kept, passed, served or done (as the case may be) under the corresponding provision of this Act, unless otherwise provided.

(b) Paragraph (a) shall apply to anything done by the Registrar, the Minister or Minister for Finance that could be done by the Central Bank under this Act.

(2) The repeals effected by this Act shall not affect the registration or incorporation of any building society registered or incorporated under an enactment so repealed, and any such registration or incorporation shall be deemed to be a registration or incorporation under this Act.

(3) Where any act or omission is an offence under an enactment repealed by this Act and that enactment provides a penalty for the continuation of the offence, the continuation of the act or omission after the commencement of this section shall be an offence under the provision of this Act which corresponds to the provision of the repealed enactment creating the offence.

(4) A reference in any other enactment or in any document to an enactment repealed by this Act shall, unless the context otherwise requires, be construed as a reference to the corresponding provision of this Act.

(5) A society incorporated under the repealed enactments shall, within a period of 2 years from the commencement of this section—

(a) agree by special resolution on—

(i) the objects of the society,

(ii) whether to adopt any and, if so, what adoptable powers (with or without restrictions), and

(iii) whether to assume and, if so, what restrictions on the extent of its other powers under this Act,

in a memorandum the provisions of which comply with the requirements of Part I of the Second Schedule;

(b) agree by special resolution on rules so that they conform with this Act and any regulations made thereunder; and

(c) deliver to the Central Bank 3 copies of the memorandum or the rules, as the case may be, each signed by the secretary of the society and accompanied by a statutory declaration by the secretary that the memorandum or rules were agreed by resolution passed as a special resolution and apply to have the memorandum or rules registered.

(6) Subsections (3), (5) and (6) of section 14 shall apply, subject to any necessary modifications, with respect to any document delivered to the Central Bank under subsection (5) (c).

(7) In agreeing on its memorandum or rules under subsection (5), the society shall, subject to subsection (8), determine the date on which the society intends it to take effect and the memorandum or rules is sent to the Central Bank shall be accompanied by a statement specifying that date.

(8) The provisions of a memorandum or rules registered under this section shall take effect on the date specified in subsection (7) or, if registration of the memorandum or rules is not effected until a later date, that later date.

(9) No date shall be specified under subsection (7) in relation to a society's memorandum or rules which falls more than 6 months after the date of the meeting at which the society agreed upon the memorandum or rules, as the case may be.

(10) The rules of a society in force on 21 December, 1988, shall remain in force in respect of that society until the date determined in accordance with subsection (8) but the provisions of this Act, other than Part II of the Second Schedule, shall have effect and the said rules shall be construed accordingly.

(11) An existing director of a society shall be treated for the purposes of section 50 as having been duly elected a director on the date of his election as director or, as the case may be, of his most recent re-election to that office before the commencement of this section.

(12) If the term of office of an existing director would, in accordance with the terms on which he holds office, expire on an earlier date than is provided for by subsection (11), he shall vacate office on that earlier date.

(13) If at the commencement of this section, an existing director has held office since the date of his election or most recent re-election for a period longer than is provided for in section 50 (10), he shall retire from office at the first annual general meeting of the society after the commencement of this section.

125 Transfer of functions to Central Bank.

125.—(1) From the commencement of this section, proceedings in relation to building societies pending before the Registrar of Building Societies under the Building Societies Acts, 1976 to 1986, shall be transferred to and dealt with by the Central Bank under this Act.

(2) The Registrar shall, on the commencement of this section, to such extent as may be required by the Central Bank, transfer all documents and records relative to building societies in the possession of his office to the Bank.

126 Amendments to the Bankers' Books Evidence Acts, 1879 and 1959, and the Bills of Exchange Act, 1882.

126.—(1) Section 9 (1) of the Bankers' Books Evidence Act, 1879 (inserted by the Bankers' Books Evidence (Amendment) Act, 1959) is hereby amended by the insertion after paragraph (d) of the following—

“(e) a building society (within the meaning of the Building Societies Act, 1989).”.

(2) Section 2 of the Bills of Exchange Act, 1882, is hereby amended by the substitution of the following definition for the definition of “Banker”—

“‘Banker’ includes a body of persons whether incorporated or not who carry on the business of banking and a building society (within the meaning of the Building Societies Act, 1989).”.

127 Recognition of building society accounts.

127.—(1) A reference in any enactment to the deposit of money or the keeping of an account in a bank shall, unless the context otherwise requires, be construed as including the deposit of money with or the keeping of an account in a building society that is authorised within the meaning of section 17 and the provisions of any such enactment in relation to the rights and obligations of a bank in respect of accounts in a bank shall apply to a building society as they apply to a bank.

(2) Any deposit or account to which subsection (1) relates may be held in the form of a shareholding in the society.

FIRST SCHEDULE Enactments Repealed

Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
No. 38 of 1976	Building Societies Act, 1976	The whole Act
No. 27 of 1979	Housing (Miscellaneous Provisions) Act, 1979	Section 20
No. 31 of 1980	Building Societies (Amendment) Act, 1980	The whole Act
No. 25 of 1983	Building Societies (Amendment) Act, 1983	The whole Act
No. 24 of 1984	Land Act, 1984	Section 4 (2)
No. 36 of 1986	Building Societies (Amendment) Act, 1986	The whole Act

SECOND SCHEDULE Provisions applicable as respects the memorandum and rules

Part I The Memorandum

(a) the name of the society;

(b) the objects of the society;

(c) the adoptable powers (if any) and any restrictions thereon which the society has adopted in accordance with section 36; and

(d) the restrictions (if any) which the society has assumed on the extent of any of its other powers under this Act.

Part II The Rules

(a) the name of the society;

(b) the manner in which the society may change its chief office;

(c) the manner of determination of the terms on which shares are to be issued and repaid, and the manner in which shareholders are to be informed of changes in the terms on which their shares are held;

(d) whether any preferential or deferred shares are to be issued and, if so, within what limits and on what terms;

(e) the manner in which housing loans are to be made and repaid, and the conditions on which such a borrower can redeem the amount due from him before the end of the period for which such a loan was made;

(f) the arrangements for the custody of the mortgage deeds and other securities belonging to the society;

(g) the manner in which losses are to be ascertained and provided for;

(h) the powers and duties of the board of directors;

(i) the manner of appointing, remunerating (including pensions) and removing directors (including the filling of casual vacancies) and, where it is not to be fixed by resolution at the annual general meeting, the maximum amount of remuneration to be paid to directors;

(j) the manner of remunerating auditors;

(k) the form, and arrangements for the custody and use, of the seal of the society;

(l) the right of members to requisition meetings;

(m) the form of notice for the convening of a meeting and the manner of service of the notice;

(n) the right of members to move resolutions at meetings;

(o) the manner in which notice of any resolution (including a special resolution or a conversion resolution) to be moved at meetings is to be given to members;

(p) the procedure to be observed at meetings;

(q) the voting rights of members, the right of a member to demand a poll and the manner in which a poll is to be taken;

(r) the right of a member to appoint a proxy;

(s) whether disputes between the society and any of its members, or any person claiming by or through any member or under the rules, shall be settled by reference to the Circuit Court, arbitration or the Central Bank;

(t) the manner in which membership of the society is to cease;

(u) the right of members to participate in the distribution of any surplus assets after payments to creditors on the winding up or dissolution of the society; and

(v) the manner of appointing an independent person or persons, not being an officer or employee of the society, to supervise the conduct of a poll for the election of a director.

THIRD SCHEDULE Supplementary provisions in relation to authorisation

Applications

(a) shall be made in such manner as the Central Bank may specify, either generally or in any particular case; and

(b) shall be accompanied by such information as the Central Bank may require, either generally or in any particular case, in order to decide whether or not to grant authorisation and whether with or without conditions.

(2) If required to do so by notice from the Central Bank given at any time after an application for authorisation has been made and before a decision has been reached on the application, the applicant shall furnish to the Central Bank such additional information as it may require in order to decide on the application.

(3) If the Central Bank proposes to refuse to grant authorisation it shall serve a notice on the applicant stating—

(a) that it proposes to refuse to grant authorisation,

(b) the grounds for the proposed refusal, and

(c) that the applicant may make representations in writing to the Central Bank with respect to the proposed refusal within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(4) If the grounds for the proposed refusal include the ground that any officer of the society is not a fit and proper person to hold office in the society, the Central Bank shall serve notice of that ground on that officer giving him the right to make representations with respect to his fitness and propriety for office within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(5) The Central Bank shall, before reaching a decision on the application, consider any representations made to it under subparagraph (3) or (4).

(6) If, on an application for authorisation, the Central Bank refuses to grant authorisation, it shall serve on the society and on every officer of the society a notice stating the Central Bank's decision and the grounds for it and, subject to subparagraph (7), shall do so before the expiry of the period of 6 months beginning on the date on which the application was received.

(7) In any case where the Central Bank requires additional information with respect to an application, the latest time for the giving of a notice under subparagraph (6) with respect to the application shall be the expiry of whichever of the following periods first expires, namely—

(a) the period of 6 months beginning with the date on which the additional information is furnished to the Central Bank; or

(b) the period of 12 months beginning with the date on which the application was received by the Central Bank.

Imposing or amending conditions.

(a) that the Central Bank proposes to impose conditions or to amend or add to the conditions of an authorisation;

(b) the proposed conditions, amendments or additions;

(c) the grounds for the proposal; and

(d) that the society may make representations in writing to the Central Bank with respect to the proposed imposition, amendment or addition within such period, not being less than 21 days after service of the notice, as may be specified in the notice.

(2) If any condition proposed to be imposed, amended or added includes a requirement for the removal from office of any officer of the society, the Central Bank shall serve notice of that proposal on that officer giving him the right to make representations with respect to the proposal within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(3) The Central Bank shall, before reaching a decision on whether to impose, amend or add to conditions, consider any representations made to it under subparagraph (1) or (2).

(4) If the Central Bank decides to impose, amend or add to conditions it shall serve on the society and every officer of the society a notice stating—

(a) the conditions, and

(b) the grounds for its decision.

(5) Where the Central Bank, after considering any representations made to it under subparagraph (1) or (2), decides on an imposition, amendment or addition, as the case may be, that differs from that specified in the notice under subparagraph (1), it shall not be necessary to give a new notice under this paragraph if the difference results in the condition or conditions being no more onerous than would be the case if the Central Bank had proceeded in accordance with the original notice.

FOURTH SCHEDULE Supplementary provisions in relation to revocation of an authorisation

Revocation of authorisation.

(a) that it proposes to revoke the authorisation,

(b) its grounds for the proposed revocation, and

(c) that the society may, within 21 days after the date of the giving of the notice, make representations in writing to the Central Bank in relation to the proposed revocation.

(2) If the grounds for the proposed revocation include the ground that any officer of the society is not a fit and proper person to hold office in the society, the Central Bank shall also serve notice of that ground on the officer concerned giving him the right to make representations with respect to his fitness and propriety for office within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(3) The Central Bank shall, before deciding whether or not to revoke the authorisation, consider any representations made to it under subparagraph (1) or (2) in relation to the proposed revocation and shall serve on the society and on every officer a notice stating its decision and the grounds for it and the society may, within one month of receipt of the Bank's decision, appeal to the Court against it.

Provisions consequent on revocation.

(a) the society shall continue to be subject to the duties and obligations imposed on it by or under this Act until all its liabilities in respect of shares and deposits have been discharged to the satisfaction of the Central Bank;

(b) the society shall, as soon as may be, notify all persons holding shares in or deposits with it and the Central Bank of the measures it is taking to discharge in full and without undue delay all its liabilities in respect of such shares and deposits; and

(c) the Central Bank may, if the society fails to notify it within a reasonable time in accordance with subparagraph (1) (b) or if it considers that the measures taken or proposed to be taken by the society to discharge its liabilities to shareholders and depositors are not satisfactory, give a direction prohibiting the society for such period, not exceeding 6 months, as may be specified in the direction, from—

(i) dealing with or disposing of any of its assets, or specified assets, in any manner,

(ii) engaging in any transaction or class of transaction or specified transaction, or

(iii) making payments,

without the prior authorisation of the Central Bank and may require it to prepare and submit to the Bank within 2 months of the direction, for its approval, a scheme for the orderly discharge in full of its liabilities to its shareholders and depositors.

(2) Where a direction to which subparagraph (1) relates is given the provisions of the Fifth Schedule shall apply with any necessary modifications.

(3) Subject to subparagraph (4), any obligation to make a payment to the society, which by virtue of section 17, the society is prohibited from accepting, shall be wholly rescinded.

(4) If, when a society's authorisation is revoked, a member is under an obligation to make payments to the society which represent instalments of the amount due by way of subscription for a share in the society and which, by virtue of section 17, the society is prohibited from accepting, the obligation shall (subject to anything in the rules of the society and any agreement between the society and the member) be suspended in respect of each instalment for the period during which no authorisation is in force; and accordingly if the society is subsequently granted authorisation the sum due shall again become payable by instalments.

(5) It shall be the duty of the society to make reasonable arrangements for using the funds of the society to meet applications by depositors with and shareholders in the society (being applications made in accordance with the rules of the society) for repayment of the money deposited or subscribed by them.

(6) A society whose authorisation has been revoked may apply to the Central Bank for a new authorisation in accordance with section 17.

(7) The Central Bank shall note the revocation of the society's authorisation and the date it takes effect in the public file of the society and, as soon as may be after the revocation of an authorisation, publish notice of the revocation in such manner as it thinks fit.

(8) Where a society's authorisation is revoked and the society is being wound up, the liquidator, notwithstanding the revocation, may continue to carry on the business of the society and to hold himself out as a building society (with all the rights and obligations attached thereto) to such extent as the Central Bank (or the Court if the society is being wound up under the supervision of the Court) may consider necessary to enable him to discharge his functions.

FIFTH SCHEDULE Supplementary provisions in relation to a direction by the Central Bank under

Direction by Central Bank.

(a) at the end of the period of operation specified by the Court,

(b) on the making by the Court of an order for termination on the application of the Central Bank,

(c) on the making of a winding up order in respect of the society, or

(d) on the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make the order,

whichever first occurs.

(a) the society to whom the direction has been given shall take all necessary steps to secure that its assets wherever held, are not depleted without the prior authorisation of the Bank; and

(b) the Bank may direct a bank or any institution exempt under section 7 of the Act of 1971, which holds an account of the society to which the direction has been given, to suspend the making of payments from the account without the prior authorisation of the Bank.