Housing (Miscellaneous Provisions) Act 2002

SCHEDULE 3

Amendments to Building Societies Act, 1989

Number

Provision affected

Amendment

1.

Section 23

( a) In subsection (1):

(i) in paragraph ( e), delete “and”;

(ii) in paragraph ( f), substitute “;” for “.”;

(iii) insert the following after paragraph ( f):

“( g) commercial loans before the mortgage has been created and guarantees in lieu of such loans, and

( h) loans secured by cash or in relation to which the society has rights of set-off against cash.”.

( b) In subsection (2):

(i) in paragraph ( a), delete “and” where it occurs for the second time;

(ii) in paragraph ( b), substitute “, and” for “.”;

(iii) insert the following after paragraph ( b):

“( c) any other conditions that the Bank considers appropriate.”.

2.

Section 25

In subsection (1):

( a) substitute the following for paragraphs ( b) and ( c):

“( b) an assessment shall not be made by a person who is disqualified under this section from making an assessment,

( c) where a borrower takes out a loan, secured against a particular security, for the first time—

(i) in relation to such security, or

(ii) with the building society concerned,

a written report shall be made on the value of the security and any factors which may affect its value by a person who is competent to value and who is not disqualified under this section from making a report on the security concerned,

( d) where any further loan is taken out by the same borrower secured against the same security, a building society shall establish such procedures as it considers appropriate for assessing the value of the security for the loan concerned.”;

( b) delete “but the arrangements need not require each report to be made with a view to a particular assessment so long as it is adequate for the purpose of making the assessment”.

3.

Section 29

In subsection (2)( b), insert “other than guarantees referred to in section 23(1)( g)” after “indemnities,”.

4.

Section 34

In subsection (1), insert “and for such other purposes as the Central Bank may from time to time approve” after “business”.

5.

Section 40

In subsection (2), substitute the following for subparagraphs (i), (ii) and (iii):

“(i) the carrying on of the ordinary business of a building society,

(ii) the making of payments to which subparagraph (i) does not relate,

(iii) the acquisition or disposal of other assets or liabilities,”.

6.

Section 53

( a) In subsection (8), substitute “Subject to subsection (8A), the provisions of this section apply” for “The provisions of this section apply”.

( b) Insert the following after subsection (8):

“(8A) Subsection (8) shall not apply to any transaction or arrangement made by a society for a person connected with a director of the society where—

( a) it is entered into by the society in the ordinary course of its business, and

( b) its value is not greater, and its terms no more favourable, in respect of the person for whom it is made, than that or those which—

(i) the society ordinarily offers, or

(ii) it is reasonable to expect the society to have offered,

to or in respect of a person of the same financial standing but unconnected with the society.”.

7.

Section 57

In subsection (2), substitute the following for paragraph ( c):

“( c) any loan, if the loan is made for or towards the purchase or improvement of a house used or to be used as the director's only or main residence and provided that—

(i) loans of that description and on similar terms are ordinarily made to employees of the society, and

(ii) it is reasonable to expect the society to have offered a similar loan to or in respect of a person of the same financial standing as the director but unconnected with the society.”.

8.

Section 59

( a) Insert the following after subsection (1):

“(1A) Subsection (1) shall not require a building society to keep in its register a copy of a transaction or arrangement made for a connected person if—

( a) it is entered into by the society in the ordinary course of its business, and

( b) its value is not greater, and its terms no more favourable, in respect of the person for whom it is made, than that or those which—

(i) the society ordinarily offers, or

(ii) it is reasonable to expect the society to have offered,

to or in respect of a person of the same financial standing but unconnected with the society.”.

( b) Insert the following after subsection (3):

“(3A) Subsection (3) shall not require the inclusion in the statement of particulars of any transaction or arrangement if—

( a) it is entered into by the society in the ordinary course of its business, and

( b) its value is not greater, and its terms no more favourable, in respect of the person for whom it is made, than that or those which—

(i) the building society ordinarily offers, or

(ii) it is reasonable to expect the building society to have offered,

to or in respect of a person of the same financial standing but unconnected with the building society.”.

9.

Section 77

( a) In subsection (1)( c), substitute “a cash flow statement” for “a statement of the source and application of funds”.

( b) In subsection (2), substitute “and in respect of the society and its subsidiaries, group accounts dealing respectively with the income and expenditure, the state of the affairs and the manner in which the society and its subsidiaries have been financed and their financial resources have been used, during that year” for “, group accounts dealing respectively with the income and expenditure, the state of the affairs and the source and application of the funds, of the society and the subsidiaries”.

( c) In subsection (4), substitute “a cash flow statement” for “a statement of the source and application of funds”.

( d) In subsection (6), substitute “the cash flow statement” for “the statement of the source and application of funds”.

10.

Section 81

In subsection (2), substitute “the cash flow statement” for “the statement of the source and application of funds”.

11.

Section 88

In subsection (3)( e)(iii), substitute “in the case of the cash flow statement” for “in the case of the statement of source and application of funds”.

12.

Part XI

Insert the following section after section 101A (inserted by the Central Bank Act, 1997):

“Joint shareholders.

101B.—Where members of a society are entitled, under section 101A, to shares in the successor company, in the case of shares jointly held in the society—

( a) the final share documentation which indicates ownership of the shares, and

( b) documentation which gives an option to purchase further shares in the successor company,

shall issue in the names of all members of that joint shareholding.”.