Building Societies Act 1874
| Jurisdiction | UK Non-devolved |
| Citation | 1874 c. 42 |
Building Societies Act, 1874
(37 & 38 Vict.) CHAPTER 42.
An Act to consolidate and amend the Laws relating to Building Societies.
[30th July 1874]
W HEREAS it is expedient to consolidate and amend the law relating to building societies:
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:
1 Short title.
1. This Act may be cited as TheBuilding Societies Act, 1874.
2 Commencement of Act.
2. This Act shall commence and take effect on the second day of November one thousand eight hundred and seventy-four.
3 Definition of registrar.
3. The registrar in this Act means (except where otherwise expressed) the registrar for the time being of friendly societies in England, Scotland, or Ireland, as the case may be, who shall, for the purposes of this Act, be the registrar of building societies.
4 Definition of court.
4. The court in this Act means,—
In England, the county court of the district in which the chief office or place of meeting for the business of the society is situate;
In Scotland, the sheriff's court of the county in which such office or place of meeting is situate; and
In Ireland, the civil bill court within the jurisdiction of which such office or place of meeting is situate.
5 Definition of terminating and permanent societies.
5. A terminating society in this Act means a society which by its rules is to terminate at a fixed date, or when a result specified in its rules is attained; a permanent society means a society which has not by its rules any such fixed date or specified result at which it shall terminate.
6 Application to Scotland.
6. In the application of this Act to Scotland the following words and expressions shall have the meanings hereby assigned to them; viz., ‘freehold estate’ shall mean ‘heritable estate;’‘mortgage’ shall mean ‘conveyance or bond and disposition in security;’‘letters of administration’ shall mean ‘confirmation.’
7 Repeal of 6 & 7 W. 4. c. 32.
7. The Act of the sixth and seventh years of His late Majesty King William the Fourth, chapter thirty-two, intituled ‘An Act for the Regulation of Benefit Building Societies,’ is hereby repealed, but this repeal shall not affect any subsisting society certified under the said Act, until such society shall have obtained a certificate of incorporation under this Act; and this repeal shall not affect the past operation of the said Act, or the force or operation, validity or invalidity, of anything done or suffered, or any bond or security given, or any right, title, obligation, or liability accrued, or any proceedings taken thereunder, or under the rules of any society which has been certified thereunder: Provided that with regard to such subsisting societies as may not obtain certificates of incorporation under this Act, all things required to be done by or sent to the barrister or advocate and the clerk of the peace under the provisions of the said repealed Act shall be done by or sent to the registrar.
8 Societies under former Act to continue.
8. Every society the rules of which have been certified under the said repealed Act shall be deemed to be a society under this Act, and may obtain a certificate of incorporation under this Act, and thereupon its rules shall, so far as the same are not contrary to any express provisions of this Act, continue in force until altered or rescinded as herein-after mentioned.
9 Incorporation of societies.
9. Every society now subsisting or hereafter established shall, upon receiving a certificate of incorporation under this Act, become a body corporate by its registered name, having perpetual succession, until terminated or dissolved in manner herein provided, and a common seal.
10 Enrolments to be sent to registrar.
10. On the commencement of this Act all transcripts of the rules of societies certified and enrolled under the said repealed Act which are now filed with the rolls of the sessions of the peace of any county, riding or division, city or borough, liberty or place, shall, on a proper application made for that purpose, be taken off the file and transmitted by the clerk of the peace to the registrar, to be by him kept and registered; and upon such registration every such subsisting society shall be entitled to a certificate of incorporation on application to the registrar.
11 Where enrolled transcript of rules not transmitted.
11. Any society now subsisting, the transcript of the rules of which is not transmitted to the registrar by the clerk of the peace, shall, upon furnishing the registrar with a copy of its rules, purporting to be certified or to be a true copy of rules certified by the barrister under the said repealed Act, authenticated by statutory declaration of the secretary or other officer of the society, as the registrar may require, be entitled to a certificate of incorporation, and such copy of rules shall be by him kept and registered.
12 Certificate of incorporation how to be granted.
12. A certificate of incorporation under this Act shall not be granted to an existing society except upon application to the registrar made by authority of a general meeting of the society specially called for the purpose; and the registrar may require of the person making the application a statutory declaration that such authority was duly given.
13 Purpose for which societies may be established.
13. Any number of persons may establish a society under this Act, either terminating or permanent, for the purpose of raising by the subscriptions of the members a stock or fund for making advances to members out of the funds of the society upon security of freehold, copyhold, or leasehold estate, by way of mortgage; and any society under this Act shall, so far as is necessary for the said purpose, have power to hold land with the right of foreclosure, and may from time to time raise funds by the issue of shares of one or more denominations, either paid up in full or to be paid by periodical or other subscriptions, and with or without accumulating interest, and may repay such funds when no longer required for the purposes of the society. Provided always, that any land to which any such society may become absolutely entitled by foreclosure, or by surrender, or other extinguishment of the right of redemption, shall as soon afterwards as may be conveniently practicable be sold or converted into money.
14 Limitation of liability of members.
14. The liability of any member of any society under this Act in respect of any share upon which no advance has been made shall be limited to the amount actually paid or in arrear on such share, and in respect of any share upon which an advance has been made shall be limited to the amount payable thereon under any mortgage or other security or under the rules of the society.
15 Power to borrow money.
15. With respect to the borrowing of money by societies under this Act, the following provisions shall have effect:
(1) (1.) Any society under this Act may receive deposits or loans, at interest, within the limits in this section provided, from the members or other persons, or from corporate bodies, joint stock companies, or from any terminating building society, to be applied to the purposes of the society:
(2) (2.) In a permanent society the total amount so received on deposit or loan and not repaid by the society shall not at any time exceed two thirds of the amount for the time being secured to the society by mortgages from its members:
(3) (3.) In a terminating society the total amount so received and not repaid may either be a sum not exceeding such two thirds as aforesaid, or a sum not exceeding twelve months subscriptions on the shares for the time being in force:
(4) (4.) Any deposits with or loans to a society under this Act, made before the commencement of this Act in accordance with its certified rules, are hereby declared to be valid and binding on the society, but no further deposits or loans shall be received by such society, except within the limits provided by this section:
(5) (5.) Every deposit book or acknowledgment or security of any kind given for a deposit or loan by a society shall have printed or written therein or thereon the whole of the fourteenth and fifteenth sections of the present Act.
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