BUILDING SOCIETIES ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

 

Incorporation of Building Societies

   3   Incorporation of societies

 

Rules and Certification

   4   Rules

   5   Maximum fines

   6   Trusts upon which mortgages are to be taken

   7   Rules and alterations to be submitted to Attorney-General, and copy sent to Record Office when certified

      Effect thereof.

      Procedure where the Attorney-General refuses to certify.

   8   Fee to Attorney-General

      Licence

   8B   Application for licence

 

Amalgamation of Societies

   9   Societies may unite

      Society may transfer its engagements to another

   9B   Supplementary provisions

   9C   Special resolutions

 

Change of Name or Office and Purchase of Buildings for Business

   10   Change of name

   11   Change of chief office

   12   Buildings for purposes of society may be purchased or leased

 

Officers

   13   Officers to give security

      Officers to account

 

Members

   14   Minors may be elected members

   15   Shares may be held by two or more persons

 

Advances to Members

   16   Power to make advances on freehold securities

   17   Building society may make advances to members on security only of their uncharged shares

 

Limitation of Liability of Members

   18   Limitation of liability of members

 

Mortgages

   19   Mortgages not exceeding $16,000 exempt from stamp duty

   20   Recording of mortgages

   21   How stamp duty on mortgages to be impressed and noted

   22   Loans exceeding $6,000 in the aggregate to the same members, how to be stamped

   23   Memorandum as to aggregate of loans

   24   Penalty on subscribing a false note

   25   Stamp chargeable to borrower

   26   Receipt endorsed on mortgage

 

Power of Society to Borrow Money

   27   Power to borrow money

   28   Method of calculating amount secured to a society for the purpose of ascertaining limits for receiving deposits or loans

 

Death Intestate of Member or Depositor

   29   Payment of sums not exceeding $1,000 when members or depositors die intestate

   30   Provision for the case of a member dying intestate leaving an infant heir

 

Annual Audit and Statement of Accounts

   31   Societies shall make annual audits and statements of the funds to the members

   32   Form and contents of annual statements under section 31

      Duties of auditors.

      "Official year" defined.

 

Determination of Disputes

   33   Determination of disputes by arbitration

   34   "Disputes" in section 33 defined

   35   Determination of disputes by Court

   36   Determination to be final

 

Termination or Dissolution of a Society

   37   Proceedings necessary for the termination or dissolution of a society

   38   Continued application of this Act to societies being dissolved

   39   Liability of members who have received advances when society is being wound up

 

Register of Societies, Proof of Registry, etc Evidence of Documents and Fees for Certificate

   40   Register of societies in the Record Office

   41   Particulars to be entered on such register

   42   Proof of registry and of rules of societies

   43   Deputy Keeper of Records' fees for certificates

 

Appointment of Accountant or Actuary to Inspect Books

   44   Appointment of accountant or actuary by Chief Justice

   45   Penalty for obstructing actuary or accountant

 

Appointment by Court or Society of Inspector to Examine into Affairs of Society

   46   Power to order enquiry into affairs of society

   47   Costs on refusal of appointment

      Proceedings on report.

   48   Powers of Inspectors

   49   Report of Inspectors, filing, and payment of costs thereof

   50   Inspection by resolution of the society

   51   Inspectors' report admissible as evidence

   52   Power of Judge to make order under section 46

 

Offences and Penalties

   53   Punishment of fraud in withholding money, etc

      Proceedings.

   54   Penalties

   55   Penalty on officer receiving commissions, etc on a loan

   56   Falsifying document required to be sent to Deputy Keeper of Records

   57   Neglect or refusal to perform duties

      Offences and penalties

 

Forms

   58   Forms in Schedules

 

Miscellaneous

   59   Capital to be raised by shares

      Fresh shareholders may be admitted.

   60   Limitation of responsibility of officers

   61   Appointment and removal of officers

   62   Society not formed until rules have been certified and filed

      Rules must be entered in book.

   63   How business to be carried on

   64   General Meeting

   65   Appointment of committees

   66   Donations and bequests

   67   Bonuses on shares

   68   Members may sue and be sued by society

 

Loans for Development Schemes

   69   Definitions

   70   Manner of dealing with applications for loans

   71   Power of Society to make loans without amending, repealing or altering its Rules

   72   Extent of guarantee by the Minister

   73   Payment of guarantee

   74   Form of Mortgage

      Exemption in respect of all fees and stamp duties.

 

Action by Minister and Supervisor where Societies Cease to be Viable

   75   Interpretation

      Supervisor may require information

   75B   Restructuring of ownership of building society

   75C   Ownership of subsidiaries by building society

   75D   Supervisor may issue directions re risk

   75E   Management or investment of customers' funds

   75F   Offences by bodies corporate

   76   Socieity ceasing to be viable

   77   Vesting of society's shares, etc in Minister

   78   Effect of vesting order

   79   Restructuring transactions

   80   Winding-up of Scheme of Arrangement

   81   Notice re compensation

   82   Determination of compensation

   83   Application to Court

   84   Vesting by Minister

      SCHEDULES

 

THE BUILDING SOCIETIES ACT

[Date of Commencement: 4th June, 1897]

Cap 48.

Law 67 of 1955.

Acts
22 of 1967,
55 of 1968,
42 of 1969,
32 of 1974,
15 of 1976,
1 of 1979,
3 of 1985,
3 of 1995,
27 of 1995,
42 of 1997,
12 of 2002,
29 of 2004,
27 of 2010.

1   Short title

   This Act may be cited as the Building Societies Act.

2   Interpretation

   The Court in this Act means the Supreme Court.

Incorporation of Building Societies (section 3)

3   Incorporation of societies

   Any number of persons who desire to establish a building society, may, on having its rules certified as by this Act provided, obtain from the Deputy Keeper of the Records a certificate of incorporation in the form set out in the First Schedule:

   Provided that no society shall be incorporated in a name identical with a then existing society, or so nearly resembling the same as to be calculated to deceive unless such existing society is in course of being terminated or dissolved and consents to such registration.

   The society shall supply to any person requiring the same a complete printed copy of the rules, with a copy of the certificate of incorporation appended thereto, and shall be entitled to charge for every such printed copy of rules a sum not exceeding ten cents.

Rules and Certification (sections 4-8B)

4   Rules

   (1) It shall be lawful for the several shareholders of a society from time to time to assemble together, and by majorities of those present to make, ordain and constitute such proper and wholesome rules for the government and guidance of the same, as to the major part of the shareholders of such society so assembled together shall seem meet, so as such rules shall not be repugnant to the express provisions of this Act, and the general laws of the Island; and to inflict and impose such reasonable fines, penalties, and forfeitures upon the several shareholders of such society as shall offend against any such rules, as the shareholders, by such majority present at any such meeting may think fit; which fines, penalties, and forfeitures shall be paid to and for the benefit of the general funds of such society; and also from time to time, in the manner, and by the majorities required by this Act, or by the rules of such society for the time being, to alter and amend such rules as occasion shall require or render desirable, or annul, rescind, or repeal the same, and to make new and other rules for the furtherance of the objects of such society.

   (2) The rules of every building society shall set forth-

   (a)   the name of the society and chief office or place of meeting for the business of the society;

   (b)   the purposes to which the funds of the society are to be applied, and the manner in which they are to be invested;

   (c)   the manner of altering and rescinding the rules of the society, and of making additional rules;

   (d)   the manner of appointing, remunerating and removing the board of directors or committee of management, auditors and other officers;

   (e)   the manner of calling general and special meetings of the members;

   (f)   provision for an annual or more frequent audit of accounts and inspection by the auditors of the mortgages and other securities belonging to the society;

   (g)   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 Court, or to arbitration;

   (h)   provision for the device, custody, and use of the seal of the society, which shall in all cases bear the registered name thereof;

   (i)   provision for the custody of the mortgage deeds and other securities belonging to the society;

   (j)   the powers and duties of the board of directors or committee of management and other officers;

   (k)   the fines and forfeitures to be imposed on members of the society;

   (l)   the manner in which the society shall be terminated or dissolved;

   (m)   the manner in which the stock or funds of the society is or are to be raised;

   (n)   the terms upon which unadvanced subscription shares are to be issued, the manner in which contributions are to be paid to the society and withdrawn by the members, with tables, where applicable in the opinion of the Attorney-General, showing the amount due by the society for principal and interest respectively;

   (o)   the terms upon which paid-up shares, if any, are to be issued and withdrawn, with tables, where applicable in the opinion of the Attorney-General showing the amount due by the society for principal and interest respectively;

   (p)   whether preferential shares are to be issued, and if so, within what limits;

   (q)   the manner in which advances are to be made and repaid, the deductions, if any, for Fire or Life Insurance premiums, and the conditions upon which a borrower can redeem the amount due from him before the expiration of the period for which the advance was made, with tables, where applicable in the opinion of the Attorney-General, showing the amount due from the borrower, after each stipulated payment;

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

   (s)   the manner in which membership is to cease;

   (t)   whether the society intends to borrow money, and if so, within what limits, not exceeding those prescribed by this Act.

   (3) Where any provisions of any rules made pursuant to subsection (1) are inconsistent with the provisions of any regulations made under section 34F of the Bank of Jamaica Act, those regulations shall prevail and the rules shall, to the extent of the inconsistency, be void.

[3/1995 s 2.]

5   Maximum fines

   (1) A building society may charge interest on loans.

   (2) Subject to subsection (1), no building society shall impose any fine or penalty upon any person who is in arrear in respect of the payment of any subscription to any share in that society or in respect of the payment of any interest on, or the repayment of any principal of, any loan from that society, in excess of one and two-third cents in the dollar or a proportionate part thereof, per month or part of a month on any such arrears, so however, that no fine or penalty shall exceed twenty cents in the dollar.

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.