LAWS OF GOLD COAST

BUILDING SOCIETIES ORDINANCE, 1955 (NO. 30 OF 1955)

GOLD COAST.

NO. 30 OF 1955

As amended

ARRANGEMENT OF SECTIONS

Section

PART I—PRELIMINARY

1. Short Title.

2. Interpretation.

3. Appointment of Registrar.

4. Certificates etc., to be Evidence.

5. Indemnity of Officers.

PART II—FORMATION AND REGISTRATION

6. Maintenance of Register.

7. Formation of Building Societies.

8. Commencement of Business.

9. Provisions as to Names of Building Societies.

10. Contents of Rules of Building Societies.

11. Common Seal.

12. Registered Office and Postal Address.

PART III—MANAGEMENT OF BUILDING SOCIETIES

13. Directors.

14. Secretary.

15. Auditors.

16. Officers to give Security.

17. Officers to Account.

18. Officers not to accept Gifts.

19. Restriction of Payment of Commissions.

20. Provisions Excluding Liability of Officers Forbidden.

21. Powers of Courts to grant Relief.

PART IV—POWERS OF BUILDING SOCIETIES

22. Power to Borrow.

23. Power to Hold Land.

24. Power to make Advances to Members.

25. Power to Invest.

26. Dividends Payable out of Profits.

PART V—MEETINGS AND PERIODICAL RETURNS

27. Annual General Meeting.

28. Other Meetings.

29. Annual Account and Statement.

30. Returns of Sales and Transfers.

PART VI—MISCELLANEOUS PROVISIONS

31. Books and Records to be kept by Building Societies.

32. Rules to be Binding.

33. Duty to Supply Copies of Rules.

34. Evidence of Rules.

35. Minors.

36. Shares may be Held Jointly.

37. Prohibition of Balloting.

38. Implied Warranty.

39. Notice before Repayment.

40. Payment of Small Sums on Intestacy.

41. Notice to be given on Exercise of Power of Sale.

42. Withholding or misapplying property of a Building Society an Offence.

43. Exemption from Stamp Duty.

44. Title to Land made Security for an advance by a Building Society and remedies of Building Society in relation thereto.

45. Receipt to Vacate Mortgage.

PART VII—CHANGE OF NAME, ADDRESS, OFFICERS AND CONSTITUTION

46. Change of Name.

47. Change of Address.

48. Changes of Directors.

49. Alteration of Rules.

50. Penalties.

PART VIII—AMALGAMATION OF SOCIETIES AND TRANSFER OF ENGAGEMENTS

51. Amalgamation of Societies.

52. Transfer of Engagements.

53. Special Provisions for Transfer and Amalgamation.

54. Registration of Unions and Transfers of Engagements to Operate as Conveyance.

55. Union or Transfer of Engagements not to Prejudice Creditors.

PART IX—DETERMINATION OF DISPUTES

56. Arbitration.

57. Jurisdiction of the Court.

58. Determination to be Final.

PART X—POWERS OF THE REGISTRAR

59. Power to Require Production of Books, etc.

60. Power to Cause Inspection of Books.

61. Power to Appoint Inspector.

62. Power to Forbid Invitations for Subscriptions, etc.

63. Power to Suspend or Cancel Registration.

PART XI—DISSOLUTION AND WINDING-UP

64. Dissolution.

65. Instruments of Dissolution.

66. Winding-up.

67. Obligations of Liquidators and Trustees.

68. Liability of Members.

69. Account and Balance Sheet on Dissolution.

70. Dissolution by Award of Registrar.

PART XII—RULES AND REGULATIONS

71. Rules and Regulations.

SCHEDULES

First Schedule

Part I—Classes of Additional Security which may be taken into Account in determining the amount of Advances to Members.

Part T II—Requirements Applicable to Certain Continuing Arrangements.

Second Schedule

Third Schedule

Assented to in Her Majesty's Name and on Her Majesty's behalf this 1st day of December, 1955.

C. N. ARDEN-CLARKE

Governor.

AN ORDINANCE to provide for the formation and registration of building societies and other matters incidental thereto and connected therewith.

Date of Commencement. [3rd December, 1955.]

BE IT ENACTED by the Legislature of the Gold Coast, as follows:—

PART I—PRELIMINARY

Section 1—Short Title.

This Ordinance may be cited as the Building Societies Ordinance, 1955.

Section 2—Interpretation.

In this Ordinance, unless the context otherwise requires—

"basic advance" in relation to any advance made or to be made by a building society for the purpose of its being used in defraying the purchase price of land, means the maximum amount which the society would consider proper to advance upon the security of that land if no other security were taken by the society;

"building society" means a society formed for the purpose of raising by the subscriptions of members a stock or fund from which to make advances to members and registered in accordance with the provisions of this Ordinance;

"continuing arrangement" means any arrangement made between a building society and another person whereby, in contemplation of a series of advances comprising excess advances being made by the society to members for the purpose of their being used in defraying the purchase prices of lands, that person undertakes to give to the society a series of guarantees, each of which is to secure sums payable to the society in respect of such an advance;

"Court" means the Supreme Court;

"dispute" means a dispute between a building society and a member or any representative of a member in his capacity of a member of the society, unless by the rules for the society for the time being registered it shall be otherwise expressly provided, but, in the absence of such express provision, shall not include any dispute between any such society and any member thereof or other person whatever as to the construction or effect of any mortgage deed or any contract contained in any document, other than the rules of the society:

Provided that nothing in this definition contained shall prevent any society, or any member thereof or any person claiming through or under him, from obtaining in the ordinary course of law any remedy in respect of any such mortgage or other contract to which he or the society would otherwise be by law entitled;

"excess advance" means, in relation to any advance, the amount by which the advance exceeds the basic advance;

Cap 147.

"land" means any estate or interest in land and includes a  right of occupancy granted under the provisions of the Land and Native Rights Ordinance;

"Minister" means the Minister responsible for housing;

"mortgagor" and "mortgagee" include the successors in title of a mortgagor and mortgagee respectively;

"register" means the register of building societies to be kept by the Registrar under the provisions of section 6 of this Ordinance;

"Registrar" means the Registrar of Building Societies appointed under the provisions of section 3 and includes a Deputy Registrar and an Assistant Registrar;

"special resolution" means a resolution passed by not less than three-fourths of the members of a building society present and entitled to vote at any general meeting of which notice specifying the intention to propose that resolution has been duly given according to the rules of the society.

Section 3—Appointment of Registrar.

The Governor shall appoint a Registrar of Building Societies to perform the duties and exercise the powers imposed and conferred by this Ordinance and may appoint a Deputy Registrar and any number of Assistant Registrars who shall be subject to the directions of the Registrar.

Section 4—Certificates Etc., to be Evidence.

Any certificate of incorporation, certificate of registration or other document relating to a building society purporting to be signed by the Registrar shall, in the absence of any evidence to the contrary, be admissible as evidence without proof of the signature.

Section 5—Indemnity of Officers.

The Registrar shall not, nor shall any person acting under the authority of the Registrar or under any regulation made in pursuance of this Ordinance, be personally liable for or in respect of any act or matter done in good faith in the exercise or supposed exercise of the powers conferred by this Ordinance or by any regulation made in pursuance of this Ordinance.

PART II—FORMATION AND REGISTRATION

Section 6—Maintenance of Register.

The Registrar shall keep a register of building societies in which he shall record, in respect of all building societies registered under the provisions of section 7 of this Ordinance,

(a) the name of the society,

(b) the situation of the registered office and the postal address of the society, and

(c) such other information as the Registrar may determine.

Section 7—Formation of Building Societies.

(1) Any seven or more persons intending to form a building society may in general meeting adopt rules in compliance with the provisions of section 10 of this Ordinance and shall, within fourteen days thereafter or such extended period as the Registrar (either before or after the expiration of such fourteen days) may allow, send to the Registrar an application for registration in the prescribed form accompanied by two copies of such rules.

(2) If the Registrar is satisfied that the application and the rules are in compliance with the provisions of this Ordinance and any regulations made hereunder, he shall retain and register one copy of the rules and thereupon the society shall become a body corporate by its registered name with perpetual succession until terminated or dissolved under the provisions of this Ordinance.

(3) The Registrar shall issue a certificate of incorporation in the prescribed form to every building society registered under the provisions of this section, and shall send the certificate together with one copy of the rules to the secretary of the building society.

Section 8—Commencement of Business.

No building society shall commence business until it has obtained a certificate of incorporation issued under the provisions of section 7 of this Ordinance.

Section 9—Provisions as to Names of Building Societies.

(1) No building society may be registered with a name which is identical with that of any building society previously registered and still subsisting, or which so nearly resembles the same as to be likely to deceive, unless such subsisting society is in course of being terminated or dissolved and consents to such registration, or which is, in the opinion of the Registrar, undesirable.

(2) The name of every building society shall end with the words "Building Society".

(3) A building society shall not use any name or title other than its registered name.

Section 10—Contents of Rules of Building Societies.

The rules of every building society shall set forth:

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

(b) the manner in which the funds of the society shall be raised;

(c) the terms upon which shares shall be issued and withdrawn and the manner in which contributions shall be paid to the society;

(d) whether preferential shares may be issued and, if so, within what limits;

(e) the manner in which advances shall be made and repaid, the deductions, if any, for premiums, and the conditions upon which a borrower may 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 Registrar, showing the amount due from the borrower after each stipulated payment;

(f) the manner in which losses shall be ascertained and provided for;

(g) the manner in which membership shall cease;

(h) whether the society shall be entitled to borrow money and if so, within what limits:

Provided that the limits shall not exceed those provided by this Ordinance;

(i) the purposes to which the funds of the society may be applied and the manner in which they may be invested;

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

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

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

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

(n) 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 the Registrar or to arbitration;

(o) provision for the device, custody and use of the common seal of the society;

(p) provision for the custody of the mortgages and other securities belonging to the society;

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

(r) the fines and forfeitures which may be imposed on members of the society; and

(s) the manner in which the society may be terminated or dissolved.

Section 11—Common Seal.

Every building society shall have a common seal which shall bear the registered name of the society.

Section 12—Registered Office and Postal Address.

Every building society shall have a registered office and postal address in the Gold Coast to which all communications and notices may be addressed.

PART III—MANAGEMENT OF BUILDING SOCIETIES

Section 13—Directors.

(1) Every building society shall have a board of directors or committee of management consisting of three or more persons, of whom the secretary may be one.

(2) The duties of every director, or member of the committee of management of a building society shall include the duty of satisfying himself that the arrangements made for assessing the adequacy of securities to be taken in respect of advances to be made by the society are such as may be reasonably expected to ensure that the adequacy of any security to be so taken will be assessed by a competent and prudent person experienced in the matters relevant to the determination of the value of that security:

Provided that nothing in this subsection shall be construed as precluding a director or member of the committee of management of a building society from approving such arrangements as aforesaid by reason only that the arrangements provide for the assessment of the adequacy of such security by himself or any other director or member of the committee of management of the society.

Section 14—Secretary.

(1) Every building society shall have a secretary.

(2) Anything required or authorized to be done by or to the secretary may, if the office is vacant or there is for any other reason no secretary capable of acting, be done by or to any assistant or deputy secretary, or, if there is no assistant or deputy secretary capable of acting, by or to an officer of the society authorized generally or specially in that behalf by the board of directors or committee of management.

Section 15—Auditors.

Every building society shall have one or more auditors, who shall be persons approved for that purpose by the Registrar.

Section 16—Officers to give Security.

Every officer of a building society having the receipt or charge of any money belonging to the society shall, before taking upon himself the execution of his office, become bound with at least one sufficient surety in a bond or give such other security as the society may direct in such sum as the society may require conditioned for rendering a just and true account of all moneys received and paid by him on account of the society and for payment of all sums of money due from him to the society at such times as its rules appoint or as the society may require him to do; and in the event that any loss to a building society arises by reason of a failure to comply with the provisions of this section the directors, or members of the committee of management, as the case may be, shall be jointly and severally liable to make good such loss to the society.

Section 17—Officers to Account.

Every officer of a building society, his executors or administrators shall upon demand made or notice in writing given or left at his last or usual place of residence by the board of directors or committee of management render an account of all moneys received or paid by him on account of the society and of all moneys remaining in his hands and shall deliver all securities and effects, books, papers and property of the society in his hands or custody to such person as the society may appoint.

Section 18—Officers not to Accept Gifts.

(1) No director, secretary, surveyor, or other officer of a building society shall, in addition to the remuneration prescribed or authorized by the rules of the society, receive from any other person any gift, bonus, commission, or benefit for or in connection with any loan made, or any transaction of business, by the society.

(2) Any person paying or accepting any such gift, bonus, commission or benefit shall be liable on conviction to a fine not exceeding one hundred pounds and the person accepting any such gift, bonus, commission or benefit shall pay over to the society the amount or value of such gift, bonus, commission or benefit, and in default of such payment shall be liable to imprisonment for a term not exceeding six months.

Section 19—Restriction of Payment of Commissions.

(1) It shall not be lawful—

(a) for a person having a financial interest in the disposition of any land to receive or to agree to receive any commission or gift from a building society or from any officer, servant or agent of a building society, in consideration of the introduction of mortgage business to the society in connection with the disposition of the land or in consideration of a promise to introduce such business to the society; or

(b) for a building society, or any officer, servant or agent of a society, to offer or give or agree to give any commission or gift to any person known to the society, officer, servant or agent, as the case may be, to have a financial interest in the disposition of any land or to be a servant of a person having such an interest, for any such consideration as is mentioned in the foregoing paragraph.

(2) For the purposes of this section, a person who is employed, otherwise than in pursuance of a contract of service, in connection with the disposition of any land by a person who has a financial interest in the said disposition shall be treated, so far as relates to the disposition of the land, as a servant of the person having the said interest unless he carries on, independently of that person, the business of a solicitor, estate agent, surveyor or auctioneer.

(3) Where a building society has a financial interest in the disposition of any land, nothing in this section shall prohibit—

(a) the society, or any officer, servant or agent of the society, from offering or giving or agreeing to give, in relation to the disposition of that land, any commission or gift to a servant of the society (not being a person who, to the knowledge of the society, officer, servant or agent, as the case may be, either himself has a financial interest in the disposition of that land or is, in addition to being a servant of the society, also the servant of any person other than the society who has such an interest) for any such consideration as is mentioned in subsection (1) of this section; or

(b) a servant of the society (not being a person who himself has a financial interest in the disposition of that land, or who is, in addition to being the servant of the society, also the servant of any person other than the society who has such an interest) from receiving or agreeing to receive, in relation to the disposition of that land, any commission or gift from the society, or from any officer, servant or agent of the society, for any such consideration as aforesaid.

(4) Any person who contravenes the provisions of this section shall be liable on conviction to a fine not exceeding five hundred pounds or to imprisonment for a term not exceeding three months or to both such fine and such imprisonment.

Section 20—Provisions Excluding Liability of Officers Forbidden.

Any provision, whether contained in the rules of a building society or in any contract with a building society or otherwise, for exempting any director, member of the committee of management, manager or officer of a building society or any person (whether an officer of the society or not) employed by the society as auditor from, or indemnifying him against, any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default, breach of  duty or breach of trust of which he may be guilty in relation to the society, shall be void:

Provided that a building society may, in pursuance of any such provision as aforesaid, indemnify any such director, member of the committee of management, manager, officer or auditor against any liability incurred by him in defending any proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted or in connection with any application under section 21 of this Ordinance in which relief is granted to him.

Section 21—Powers of Courts to Grant Relief.

(1) If in any proceedings for negligence, default, breach of duty or breach of trust against any person to whom this section applies, it appears to the court hearing the case that that person is or may be liable in respect of the negligence, default, breach of duty or breach of trust, but that he has acted honestly and reasonably and that having regard to all the circumstances of the case including those connected with his appointment he ought fairly to be excused for the negligence, default, breach of duty or breach of trust, that court may relieve him either wholly or partly from his liability on such terms as the court may think fit.

(2) Where any person to whom this section applies has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust he may apply to the court for relief and the court on any such application shall have the same power to relieve him as under this section it would have had if it had been a court before which proceedings against that person for negligence, default, breach of duty or breach of trust had been brought.

(3) The persons to whom this section applies are the directors, the members of the committee of management, the members and officers of a building society and any persons employed by a building society as auditors, whether they are or are not officers of the society.

PART IV—POWERS OF BUILDING SOCIETIES

Section 22—Power to Borrow.

(1) A building society may receive deposits or loans at interest from the members or from other persons to be applied to the purposes of the society:

Provided that the total amount received on deposit or loan (including interest due thereon) and not repaid by the society shall not at any time exceed two-thirds of the amount (excluding prospective interest) for the time being secured to the society by mortgages from its members.

(2) In calculating the amount for the time being secured to a building society by mortgages from its members for the purposes of subsection (1) of this section there shall be disregarded—

(a) the amount secured on properties, the payments in respect of which (whether by repayment of principal, payment of interest or otherwise) were upwards of twelve months in arrear at the date of the society's last preceding annual account and statement; and

(b) the amount secured on properties of which the society had been twelve months in possession at the date of such account and statement.

(3) Money deposited with a building society as security for an advance made by the society as a member, or as security for any guarantee given in respect of such an advance, shall be deemed to be money borrowed by the society.

Section 23—Power to Hold Land.

(1) It shall be lawful for a building society—

(a) to acquire and hold any land which the society requires for its business premises or for the housing of its staff; and

(b) to acquire by foreclosure or surrender any land mortgaged to the society:

Provided that any land acquired by a building society under paragraph (b) of this subsection shall as soon afterwards as may be conveniently practicable be sold or converted into money.

(2) A building society may let any part of its business premises which is not required for the immediate use of the society.

Section 24—Power to make Advances to Members.

(1) A building society may make advances to its members out of its funds upon the security of land in the Gold Coast:

Provided that no building society shall advance money on the security of any land which is subject to a prior mortgage, unless the prior mortgage is in favour of the society making the advance and if any advance is made in contravention of this proviso, the directors of the society or the members of the committee of management, as the case may be, who authorized the advance shall be jointly and severally liable for any loss on the advance occasioned to the society.

(2) In determining the amount of any advance by a building society to one of its members upon the security of any land, the society shall not take into account the value of any additional security taken by the society for the advance, other than a security of a class specified in Part I of the First Schedule hereto.

(3) Where a charge upon a policy of life assurance is taken as additional security for such an advance as aforesaid, the value of the policy shall be assessed at an amount not exceeding the surrender value thereof at the time when the advance is made.

(4) Where a guarantee given in pursuance of a continuing arrangement is taken as additional security for such an advance as aforesaid, the advance shall not exceed ninety-five per centum of the amount of the purchase price for the defraying of which the advance is made, the basic advance shall not exceed seventy-five per centum of that amount and the excess advance shall not exceed twenty per centum of that amount.

(5) Where a building society takes as additional security for an advance to a member a guarantee given in pursuance of a continuing arrangement, the terms of the advance shall not provide for the payment of any sums to the society in respect of the advance after the expiration of a period of twenty years from the date on which the advance is made nor, after any such advance as aforesaid has been made by the society, shall the society make any agreement which has the effect of rendering any sums payable to the society in respect of the advance after the expiration of the said period:

Provided that nothing in this subsection shall affect the power of a society to make any such agreement as aforesaid in relation to any advance which has been made by the society not less than one year before the making of the agreement if, in the opinion of the directors or members of the committee of management of the society, it is desirable so to do in order to avoid hardship to a member of the society.

Section 25—Power to Invest.

(1) A building society may, from time to time as its rules permit, invest any portion of its funds not immediately required for its purposes, in or upon any stock, shares or securities for the time being authorized by law for the investment of trust moneys or in any other classes of investment authorized by the Governor by notice in the Gazette.

(2) A building society which makes any advance upon the security of land to any person other than a member of the society shall have no power to take any additional security for the advance.

Section 26—Dividends Payable out of Profits.

(1) Notwithstanding anything to the contrary contained in its rules, no building society shall pay any dividend or interest on any of its shares, whether preferential or not, otherwise than out of profits earned by the society:

Provided that for any year within a period not exceeding five years after incorporation a building society may pay a dividend or interest on its shares not exceeding two per cent for that year, notwithstanding that profits to cover such amount have not been earned by the society.

(2) Where a dividend or interest has been paid under the proviso of subsection (1) of this section, the total amount thereof shall, in so far as it was not paid from profits earned by the society, be shown and carried forward in its annual account as a trading loss against which future profits earned shall be offset to determine whether profits have been earned in any year for the purposes of this section.

PART V—MEETINGS AND PERIODICAL RETURNS

Section 27—Annual General Meeting.

Every building society shall in each calendar year, and within four months after the close of the previous calendar year, hold a general meeting as its annual general meeting in addition to any other meetings in that year, and shall specify the meeting as such in the notices calling it:

Provided that where a building society is incorporated after the 30th day of September in any year, it shall not be required to hold an annual general meeting during that year.

Section 28—Other Meetings.

The board of directors or committee of management of a building society shall call such other general or special meetings as may be required by the rules of the society or they may consider desirable, and shall, notwithstanding anything contained in the rules of the society, call a general or special meeting on the application of one-tenth of the members or, in the case of a society consisting of more than one thousand members, of one hundred members.

Section 29—Annual Account and Statement.

(1) Every building society shall, as soon as is practicable and not more than three months after the expiration of every calendar year, cause to be prepared an account of all the receipts and expenditure of the society during that year and a general statement of its funds and effects, liabilities and assets. Every such account and statement shall be attested by the auditors of the society and shall be countersigned by two directors or two members of the committee of management.

(2) Every such account and statement shall be in such form and shall contain such particulars as may be prescribed and, without prejudice to the generality of the foregoing, shall show—

(a) the amounts due to the holders of the various classes of shares respectively;

(b) the amounts due to depositors and creditors for loans;

(c) the balance due or outstanding on mortgage securities (not including prospective interest);

(d) the amount invested by the society in other securities; and

(e) the amount of any loan outstanding to any director of the society or member of the committee of management or to any company in which such a person is a shareholder or has a beneficial interest in any shares thereof.

(3) Every auditor in attesting any such annual account or statement shall either certify that it is correct, duly vouched and in accordance with law or specially report to the society in what respect he finds it incorrect, unvouched or not in accordance with law and shall also certify that he has at that audit actually inspected the securities belonging to the society and shall state the number of properties with respect to which evidence of title has been produced to and actually inspected by him.

(4) Every depositor and creditor for loans shall, on request, be entitled to receive from the society, free of charge, a copy of such account and statement, and a copy of such account and statement shall be sent to every shareholder of the society not later than twenty one days before the general meeting at which it is to be presented.

(5) A copy of every such annual account and statement certified in such manner as may be prescribed shall be sent to the Registrar within fourteen days after the annual or other general meeting at which it is presented or within three months after the expiration of the calendar year to which it relates, whichever period expires first.

(6) If any building society fails to comply with the provisions of this section, the society and every director, member of the committee of management, secretary or other officer of the society shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five pounds for every day during which the default continues.

Section 30—Returns of Sales and Transfers.

Every building society shall, in respect of each calendar year, cause to be prepared and sent to the Registrar, at the same time as its annual account and statement is so sent, a return in such form as may be prescribed containing such particulars as may be prescribed with respect to—

(a) every property which has, during the period to which the return relates, been sold by the society in the exercise of its powers as mortgagee thereof; and

(b) every mortgage which has been transferred by the society during the said period.

PART VI—MISCELLANEOUS PROVISIONS

Section 31—Books and Records to be Kept by Building Societies.

(1) Every building society shall keep,

(a)  a minute book recording all proceedings of general meetings;

(b) a minute book recording all proceedings of the board of directors or committee of management, as the case may be;

(c) a register of directors or members of the committee of management, as the case may be, showing the full names of every director or member, his usual residential address, his nationality and, if that nationality is not his nationality of origin, his nationality of origin, the date of his appointment and the date of his ceasing to hold office as such director or member; and

(d) such books of account as may be necessary to show the receipts and expenditure of the society, the amounts due to the holders of the various classes of shares respectively and to depositors and creditors for loans, the balance due or outstanding on mortgage securities and the amount invested by the society.

(2) Every building society shall cause to be kept records showing with respect to every advance made by the society on the security of any land,

(a) the amount at which the land was assessed and the name of the person by whom the assessment was made, and

(b) particulars of any additional security taken by the society including the amount at which such security was assessed and the name of the person by whom the assessment was made.

(3) If any building society fails to comply with the provisions of this section, the society and every director, member of the committee of management, secretary or other officer of the society shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five pounds for every day during which the default continues.

Section 32—Rules to be Binding.

(1) The rules of a building society as for the time being registered under this Ordinance shall be binding on the several members and officers of the society and on all persons claiming on account of a member or under the rules, all of whom shall be deemed and taken to have full notice thereof.

(2) For the removal of doubts, where the Government of Ghana is the holder of preferential or ordinary investment shares in a building society, the Minister shall have one vote for every ten pounds invested, anything in any rule of law or of the rules of the building society to the contrary notwithstanding; and no amendment to the rules shall be registered, or if registered before the passing of this Act shall continue to have effect, which seeks to confer more than one vote on any other holder of shares in the building society.[As Inserted by the Building Societies (Amendment) Act, 1959 (No.59 of 1959), s.2]

Section 33—Duty to Supply Copies of Rules.

Every building society shall supply to any person requiring the same a complete printed copy of its rules, with a copy of the certificate of incorporation appended thereto, and shall be entitled to charge for the same a sum not exceeding two shillings.

Section 34—Evidence of Rules.

A copy of the rules of a building society, certified by the secretary or other officer of the society to be a true copy of its registered rules, shall, in the absence of any evidence to the contrary, be admissible as evidence of the rules.

Section 35—Minors.

(1) Any person under the age of twenty-one years may be admitted as a member of any building society the rules of which do not prohibit such admission.

(2) A member of a building society while under the age of twenty-one years may—

(a) give all necessary acquittances;

(b) consent to the dissolution of the society; and

(c) by his next friend, present a petition for winding-up; but may not—

(i) vote at any meeting of the society;

(ii) hold any office in the society;

(iii) transfer any share standing in his name; or

(iv) execute a valid mortgage to secure advances made to him by the society.

Section 36—Shares may be Held Jointly.

Two or more persons may jointly hold a share or shares in a building society.

Section 37—Prohibition of Balloting.

No building society shall cause or permit applicants for advances to ballot for precedence or in any way make the granting of an advance depend on any chance or lot.

Section 38—Implied Warranty.

Where a building society makes to a member an advance for the purpose of its being used in defraying the purchase price of land the society shall be deemed to warrant to the member that the purchase price is reasonable unless, before any contract requiring the member to repay the advance is entered into, the society gives to the member a notice in writing in such form as may be prescribed stating that a making of the advance implies no such warranty.

Section 39—Notice before Repayment.

(1) A building society shall not accept any deposit except on the terms that not less than one month's notice may be required by the society before repayment or withdrawal.

(2) If a building society contravenes the provisions of this section, the society and every director, member of the committee of management, secretary or other officer of the society who is a party to the contravention shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five pounds.

Section 40—Payment of Small Sums on Intestacy.

(1) If any member of, or depositor with, a building society having in the funds thereof a sum of money not exceeding one hundred and fifty pounds shall die intestate, the amount due may be paid to the person who shall appear to the directors or committee of management of the society to be entitled to receive the same, notwithstanding that letters of administration have not been taken out, upon the society receiving satisfactory evidence of death and a statutory declaration that the member or depositor died intestate and that the person so claiming is so entitled.

(2) Any payment made under the provisions of subsection (1) of this section shall be valid and effectual with respect to any demand from any other person as next of kin as the legal personal representative of such deceased member or depositor against the funds of the society, but nevertheless such next of kin or representative shall have his lawful remedy for the amount of such payment as aforesaid against the person who has received the same.

Section 41—Notice to be given on Exercise of Power of Sale.

(1) Where a building society has exercised its power of sale of land mortgaged to it, it shall, within fourteen days from the completion of the sale, send by registered post to the person who immediately before the sale was the owner of the land at his last known address a notice containing such particulars relating to the sale as may be prescribed.

(2) Nothing in subsection (1) of this section shall affect the operation of any rule of law relating to the duty of a mortgagee to account to a mortgagor.

(3) If a building society contravenes the provisions of subsection (1) of this section, the society and every director, member of the committee of management, secretary or other officer of the society shall be guilty of an offence and shall on conviction be liable to a fine not exceeding fifty pounds and to an additional fine not exceeding ten pounds for every day during which the default continues.

Section 42—Withholding or Misapplying Property of a Building Society an Offence.

(1) If any person by false representation or imposition obtains possession of any moneys, securities, books, papers or other effects of a building society or, having the same in his possession, withholds or misapplies the same or wilfully applies any part thereof to purposes other than those expressed or directed in the rules of the society and authorized by this Ordinance, he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding fifty pounds and to be ordered to deliver up to the society all such moneys, securities, books, papers or other effects and to repay the amount of money applied improperly and in default of such delivery of effects or repayment of such amount of money shall be liable to imprisonment for a term not exceeding six months.

(2) Proceedings under subsection (1) of this section may be taken by or at the instance of —

(a) the society; or

(b) any member authorized by the society or by the board of directors or committee of management thereof or by the Registrar; or

(c) the Registrar.

Section 43—Exemption from Stamp Duty.

No receipt, nor any entry in any book of receipt, for money deposited in the funds of a building society, nor for any money  received by any member, his executors or administrators, assigns or attorney, from the funds of a building society, nor any transfer of any share, nor any bond or other security to be given to or on account of a building society or by any officer thereof, nor any order on any officer for payment of money to any member, nor any appointment of any agent, nor any certificate or other instrument for the revocation of any such appointment, nor any other instrument or document whatsoever required or authorised to be given, issued, signed, made or produced in pursuance of the provisions of this Ordinance or of the rules of a building society, shall be subject or liable to or charged with any stamp duty whatsoever:

Provided that the exemption shall not extend to any mortgage.

Section 44—Title to Land made Security for an Advance by a Building Society and Remedies of Building Society in Relation Thereto.

When any advance out of its funds is made by way of mortgage by a building society upon the security of land the provisions of the Second Schedule to this Ordinance (which relate to title to and the creation of a charge on the land, the powers of the mortgagee and matters connected therewith) shall have effect in relation thereto.

Section 45—Receipt to Vacate Mortgage.

A receipt for the whole of the moneys intended to be secured by any mortgage or charge endorsed thereon under the seal of a building society and countersigned by the secretary or manager, in the form specified in the Third Schedule to this Ordinance, shall vacate the mortgage charge or debt.

PART VII—CHANGE OF NAME, ADDRESS, OFFICERS AND CONSTITUTION

Section 46—Change of Name.

(1) A building society may, by special resolution and with the previous approval of the Registrar signified in writing, change its name.

(2) A society which changes its name in accordance with the provisions of subsection (1) of this section shall, within fourteen days from the date of the meeting at which the resolution was adopted, send to the Registrar two copies of the resolution certified in such manner as may be prescribed.

(3) The Registrar shall register one copy of the resolution and return the other to the society endorsed with a certificate of registration.

(4) A change of name by a building society in accordance with the provisions of this section shall not affect any rights or obligations of the society, or render defective any legal proceedings by or against the society; and any legal proceedings that might have been continued or commenced against it by its former name may be continued or commenced against it by its new name.

Section 47—Change of Address.

Every building society which changes the situation of its registered office or its postal address shall within fourteen days after such change send to the Registrar notice thereof in the prescribed form.

Section 48—Changes of Directors.

Whenever any person is appointed a director or member of the committee of management of a building society or ceases for any reason to be a director or member of the committee of management of a building society, the society shall within fourteen days after such happening send to the Registrar notice thereof in the prescribed form.

Section 49—Alteration of Rules.

(1) A building society may, by special resolution, alter or rescind any of its rules or make any additional rule:

Provided that no such special resolution shall have any validity until registered under the provisions of subsection (3) of this section.

(2) Where a building society has altered or rescinded any of its rules or made any additional rule, it shall, within fourteen days from the date of the meeting at which the resolution was adopted, send to the Registrar two copies of the resolution, certified in such manner as may be prescribed.

(3) If the Registrar is satisfied that the alteration, addition or rescission is in conformity with this Ordinance, he shall register one copy of the resolution and return the other to the society endorsed with a certificate of registration.

Section 50—Penalties.

If any building society fails to comply with the provisions of subsection (2) of section 46, section 47, section 48, or subsection (2) of section 49 of this Ordinance, the society and every director, member of the committee of management, secretary and other officers of the society shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five pounds for every day during which the default continues.

PART VIII—AMALGAMATION OF SOCIETIES AND TRANSFER OF ENGAGEMENTS

Section 51—Amalgamation of Societies.

(1) Two or more building societies may unite and become one society upon such terms as shall be agreed upon by three-fourths of the members (holding not less than two-thirds of the whole number of shares) of each of such societies present at general meetings respectively convened for the purpose.

(2) Two or more societies so uniting may adopt the name of either or any of them or such other name as the Registrar may approve.

(3) Notice of any such union shall be sent to the Registrar in the prescribed form and the Registrar shall register the same.

Section 52—Transfer of Engagements.

A building society may by a special resolution transfer its engagements to any other building society which may undertake to fulfil those engagements, and a building society may undertake to fulfil the engagements of any other building society by a special resolution:

Provided that no transfer of engagements shall take effect unless or until the consent thereto in writing of the holders of not less than two-thirds of the whole number of shares of each society party thereto has been obtained and notice of the transfer (which it shall be the duty of the society transferring its engagements to send to the Registrar) has been registered.

Section 53—Special Provisions for Transfer and Amalgamation.

(1) Notwithstanding the provisions of sections 51 and 52 of this Ordinance a building society desiring to unite with one or more other building societies, or to transfer its engagements to another building society, or to undertake to fulfil the engagements of another building society when such other building society has not obtained the concurrence of the holders of two-thirds of the whole number of shares of the society, may apply to the Registrar in the prescribed manner for a confirmation of such union, transfer or undertaking and thereupon the Registrar shall have power to confirm the same.

(2) Before confirming any such union, transfer or undertaking, the Registrar shall publish notice of the same in the Gazette and in such one or more newspapers (if any) as he may determine and shall give the society and any other persons he may think fit an opportunity of being heard.

Section 54—Registration of Unions and Transfers of Engagements to Operate as Conveyance.

The registration by the Registrar of the notice of union of any building societies under section 51 of this Ordinance, or of the transfer of the engagements of any building society to another building society under section 52 of this Ordinance, or the confirmation by the Registrar of any such union or transfer under section 53 of this Ordinance, shall operate as an effectual conveyance, transfer and assignment, as at the date of the said registration or confirmation, of the funds, properties and assets of the societies so uniting to the united society or of the society transferring its engagements to the society to which such engagements are transferred.

Section 55—Union or Transfer of Engagements not to Prejudice Creditors.

No union of building societies or transfer of engagements from one building society to another shall affect the rights of any creditor of either or any society uniting or transferring its engagements.

PART IX—DETERMINATION OF DISPUTES

Section 56—Arbitration.

(1) Where the rules of a building society direct disputes to be referred to arbitration, arbitrators shall be named and elected in the manner the rules provide, or, if there is no such provision, at the first general meeting of the society. No arbitrator shall be elected who is beneficially interested, directly or indirectly, in the funds of the society. A certain number of arbitrators, not less than three, shall be chosen by ballot in each case of dispute, the number of the arbitrators and mode of ballot being determined by the rules of the society.

(2) In the case of the death or refusal or neglect of any of the said arbitrators to act, the society at a general meeting shall name and elect an arbitrator to act in the place of the arbitrator dying, or refusing or neglecting to act.

(3) The names of all arbitrators elected to act under the foregoing provisions shall be entered in the minute book of  the society.

(4) The award made by the arbitrators or the major part of them, according to the true purport and meaning of the rules of the society, shall determine the dispute and should either of the parties to the dispute refuse or neglect to comply with or conform to such award within a time to be limited therein, the Court, upon good and sufficient proof being adduced of such award having been made and of the refusal or neglect of the party to comply therewith, shall enforce compliance with the same upon the petition of any person concerned.

(5) Where the parties to any dispute arising in a building society agree to refer the dispute to the Registrar or where the rules of the society direct disputes to be referred to the Registrar the award of the Registrar shall have the same effect as that of arbitrators.

Section 57—Jurisdiction of the Court.

The Court may hear and determine disputes—

(a) if it shall appear to the Court upon the petition of any person concerned that application has been made by either party to the dispute to the other party for the purpose of having the dispute settled by arbitration under the rules of the society and that such application has not within forty days been complied with or that the arbitrators have refused or for a period of twenty-one days have neglected to make any award;

(b) where the rules of the society direct disputes to be referred to the Court.

Section 58—Determination to be Final.

Every determination of a dispute by arbitrators or by the Court or by the Registrar under this Ordinance shall be binding and conclusive on all parties and shall be final to all intents and purposes and shall not be subject to appeal and shall not be removed or removable into any court or restrained or restrainable by the injunction of the court:

Provided always that the arbitrators or the Registrar, as the case may be, may at the request of either party state a case for the opinion of the Court on any question of law (but shall not be compelled to do so) and shall have power to grant to either party in the dispute such discovery as to documents and otherwise as might be granted by the Court, such discovery to be made on behalf of the society by such officer of the society as the arbitrators or the Register may determine.

PART X—POWERS OF THE REGISTRAR

Section 59—Power to Require Production of Books, Etc.

(1) The Registrar may at any time, by notice in writing served on a building society or any person who is or has been an officer of such a society, require the society or person to produce to the Registrar such books, accounts, deeds and other documents relating to the business of the society and to furnish to him such other information relating to that business as he considers necessary for the exercise of the powers given him by this Ordinance and any such notice may contain a requirement that any information to be furnished in accordance with the notice shall be verified by a statutory declaration.

(2) If any building society or other person fails to comply with the requirements of a notice under this section, the society, and every director, member of committee of management, secretary or other officer of the society or such other person, as the case may be, shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five pounds for every day during which the default continues.

Section 60—Power to Cause Inspection of Books.

(1) The Registrar may, if he thinks fit, on the application of ten members of a building society, each of whom has been a member of the society for not less than twelve months immediately preceding the date of the application, appoint an accountant or actuary to inspect the books of the society and to report thereon.

(2) Any person applying under subsection (1) of this section for inspection shall deposit with the Registrar such sum as a security for the costs of the proposed inspection as the Registrar may require.

(3) All expenses of or incidental to any such inspection shall be defrayed by the applicants, or out of the funds of the society, or by the members or officers, or former members or officers, of the society in such proportions as the Registrar may direct.

(4) A person appointed under this section shall have power to make copies of any books of the society and to take extracts therefrom at all reasonable hours at the registered office of the society or at any place where the books are kept.

(5) The Registrar shall communicate the results of any such inspection to the applicants and to the society.

Section 61—Power to Appoint Inspector.

(1) The Registrar may, on the application of one-tenth of the whole number of members of a building society or of one hundred members in the case of a building society consisting of more than one thousand members, and with the consent of the Governor, either—

(a) appoint an inspector to examine and report on the affairs of the society; or

(b) call a special meeting of the society;

Provided that—

(i)  the application under this section shall be supported by such evidence as the Registrar may direct for the purpose of showing that the applicants have good reason for requiring the inspection to be made or the meeting to be called, and that they are not actuated by malicious motives in their application; and

(ii)  such notice of the application shall be given to the society as the Registrar may direct; and

(iii) the Registrar shall require the applicants to give security for the costs of the proposed inspection or meeting before the inspector is appointed or the meeting is called; and

(iv) all expenses of and incidental to the inspection or meeting shall be defrayed by the applicants or out of the funds of the society, or by the members or officers, or former members or officers, of the society, in such proportions as the Registrar may direct.

(2) An inspector appointed under this section may require the production of all or any of the books, accounts, securities and documents of the society, and may examine on oath its officers, members, agents and servants in relation to its business, and may administer an oath accordingly.

(3) The Registrar may direct at what time and place a special meeting under this section is to be held, and what matters are to be discussed and determined at the meeting, and the meeting shall have all the powers of a meeting called according to the rules of the society, and shall in all cases have power to appoint its own chairman, any rule of the society to the contrary notwithstanding.

(4) The Registrar may, without any application by members, but with the consent of the Governor given on each occasion, exercise the powers given by this section in the following cases:—

(a) where a building society has, for two months after notice, failed to make any return required by this Ordinance;

(b) where a building society has, for two months after notice, failed to correct or complete any such return;

(c) where evidence is furnished by statutory declaration of not less than three members of a building society of facts which, in the opinion of the Registrar, call for investigation:

Provided that the Registrar shall forthwith, on receipt of such declaration, send a copy thereof to the society and such society shall within fourteen days from the sending of such copy, be entitled to give the Registrar an explanatory statement in writing by way of reply thereto.

Section 62—Power to Forbid Invitations for Subscriptions, Etc.

(1) If with respect to any building society the Registrar considers it expedient so to do in the interests of persons who have invested or deposited or may invest or deposit money with the society, he may by order, made with the prior approval of the Minister, direct that, unless and until the order is revoked, no invitation to subscribe for, or to acquire, or offer to acquire, securities or to lend or deposit money shall be made by or on behalf of the society:

Provided that before making any order under this section, the Registrar shall serve on the society a written notice stating his intention to make the order and shall consider any representations with respect to the proposed order made him by the society within the period of thirty days from the date of the service of the notice and, if the society so requests, shall afford it an opportunity of being heard by him within that period.

(2) If any invitation is made in contravention of an order made under subsection (1) of this section, the person by whom the invitation is so made shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine not exceeding five hundred pounds or to both such imprisonment and fine.

Section 63—Power to Suspend or Cancel Registration.

(1) Where the Registrar is satisfied that a certificate of incorporation has been obtained for a building society by fraud or mistake, or that any such society exists for an illegal purpose or has wilfully and after notice from the Registrar violated any of the provisions of this Ordinance or has ceased to exist, the Registrar may by notice in writing cancel the registration of the society or suspend the registration thereof for any term not exceeding three months, and may renew such suspension from time to time for the like period.

(2) The Registrar shall before cancelling or suspending the registration of a building society under the foregoing powers give to the society not less than two months' previous notice in writing specifying briefly the ground of the proposed cancellation or suspension and shall as soon as practicable after the cancellation or suspension takes place cause notice thereof to be published in the Gazette and in such one or more newspapers (if any) as he may determine.

(3) A building society may appeal to the Court against the cancellation or suspension of its registration and thereupon the Court may, if it thinks it just so to do, set aside the cancellation or suspension.

(4) The Registrar may also, if he thinks fit, at the request of any building society, evidenced in such manner as he may direct, cancel the registration of the society.

(5) A building society whose registration has been cancelled or suspended shall, from the time of such cancellation or suspension (but in the case of suspension only while the suspension lasts and in any case subject to the right of appeal given by this section) absolutely cease to enjoy the privileges conferred by this Ordinance but without prejudice to any liability incurred by the society, and any such liability may be enforced against the society as if the cancellation or suspension had not taken place.

PART XI—DISSOLUTION AND WINDING-UP

Section 64—Dissolution.

(1) A building society may be dissolved—

(a) upon the happening of any event declared by its rules to be the termination of the society;

(b) by dissolution in the manner prescribed by its rules;

(c) by dissolution with the consent of three-fourths of the members, holding not less than two-thirds of the number of shares in the society, testified  by their signatures to an instrument of dissolution; or

(d) by winding-up, either voluntarily under the supervision of the Court or by the Court.

(2) Notice of the termination of any building society and of the commencement and completion of any dissolution or winding-up shall be sent to the Registrar and registered by him.

Section 65—Instruments of Dissolution.

(1) Every instrument of dissolution of a building society shall set forth—

(a) the liabilities and assets of the society in detail;

(b) the number of members, and the amount standing to their credit in the books of the society;

(c) the claims of depositors and other creditors, and the provision to be made for their payment;

(d) the intended appropriation or division of the funds and property of the society;

(e) the names of one or more persons to be appointed trustees for the purpose of the dissolution, and their remuneration.

(2) The provisions of an instrument of dissolution may be varied with the like consent, testified in the same manner, as is required under the provisions of paragraph (c) of subsection (1) of section 64 of this Ordinance for an instrument of dissolution.

(3) Every instrument of dissolution and every instrument varying the provisions of an instrument of dissolution shall be made and signed in duplicate and sent to the Registrar within fourteen days of signature, whereupon the Registrar shall register one copy of the instrument and return the other to the society endorsed with a certificate of registration.

(4) An instrument of dissolution and any instrument varying the provisions of an instrument of dissolution shall when registered be binding upon all the members of the society.

Section 66—Winding-up.

(1) The Court may, on the petition of,

(a) any member authorized to present the same on behalf of the society by three-fourths of the members present at a general meeting of the society specially called for the purpose; or

(b) any judgment creditor for not less than fifty pounds; or

(c) the Registrar as regards a building society of which registration has been cancelled by him under the provisions of section 63 of this Ordinance,

order that a building society be wound up, either voluntarily under the supervision of the Court or by the Court.

Cap. 193.

(2) The provisions of the Companies Ordinance relating to the winding-up of companies made under the supervision of the court or by the court shall apply mutatis mutandis to the winding-up of a building society.

Section 67—Obligations of Liquidators and Trustees.

Where a building society is being dissolved in the manner prescribed by its rules or in pursuance of a special resolution, the provisions of this Ordinance shall continue to apply as if the liquidators or other persons conducting the dissolution of the society or the trustees appointed under the instrument of dissolution were the board of directors or committee of management of the society.

Section 68—Liability of Members.

(1) The liability of any member of a building society in respect of any share upon which no advance has been made shall be limited to the amount actually paid or which he has to pay until his share is fully paid up 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.

(2) When a building society is being dissolved or wound up, a member to whom an advance has been made under any mortgage or other security or under the rules of the society shall not be liable to pay the amount payable under the mortgage or other security or rules except at the time or times and subject to the conditions therein expressed.

Section 69—Account and Balance Sheet on Dissolution.

If a building society is dissolved in the manner prescribed by its rules or in pursuance of a special resolution the liquidators, trustees and other persons having the conduct of the dissolution shall, within twenty-eight days from the termination of the dissolution, send to the Registrar an account and balance sheet signed and certified by them as correct, showing the assets and liabilities of the society at the commencement of the dissolution and the way in which those assets and liabilities have been applied and discharged.

Section 70—Dissolution by Award of Registrar.

(1) On the application in writing of one-tenth of the whole number of members of any building society or of one hundred members in the case of a society of more than one thousand members, setting forth that the society is unable to meet the claims of its members and that it would be for their benefit that it should be dissolved and requesting an investigation into the affairs of the society with a view to the dissolution thereof, the Registrar may investigate the affairs of the society, but shall before doing so give not less than two months' previous notice in writing to the society at its registered office.

(2) If on such investigation it appears that the society is unable to meet the claims of its members and that it would be for their benefit that it should be dissolved, the Registrar may if he considers it expedient so to do award that the society be dissolved and shall direct in what manner the affairs of the society are to be wound up:

Provided that the Registrar may suspend his award for such  period as he may deem necessary to enable the society to make such alterations of its rules as will in his judgment prevent the necessity of the award being made.

(3) The Registrar shall, within twenty-one days after the making of any award for dissolution under this section, cause notice thereof to be advertised in the Gazette and in such one or more newspapers (if any) as he may determine.

PART XII—RULES AND REGULATIONS

Section 71—Rules and Regulations.

Cap 4.

(1) The Rules Committee constituted under the Courts Ordinance may make rules of court for regulating proceedings before the Court, and applications and appeals thereto, under the provisions of this Ordinance, and for the fees to be paid in respect thereof.

(2) Subject to the provisions of subsection (1) of this section, the Governor may make regulations prescribing anything required to be prescribed under this Ordinance and for the better carrying into effect of the provisions of this Ordinance and, without prejudice to the generality of the foregoing, such regulations may provide for the procedure in the registry of building societies, the hours in which the registry is to be open for business, the forms to be used and the fees to be paid in respect of any matter under this Ordinance required, permitted or entitled to be done and the minimum ratio which liquid assets of a building society shall bear to the total assets thereof.

FIRST SCHEDULE

PART I

Classes of Additional Security which may be taken into Account in determining the amount of Advances to Members.

1. A charge upon a policy of life assurance.

2. A guarantee given, whether in pursuance of a continuing arrangement or not, by an assurance company.

3. A charge given by the member upon money deposited with the society or upon any stocks, shares or securities for the time being authorised by law for the investment of trust moneys.

4. A guarantee, not being a guarantee given in pursuance of a continuing arrangement, accepted by the society with the written consent of the member and supported by a charge upon money deposited with the society or upon any such stocks, shares or securities as aforesaid.

5. A charge upon money deposited with the society, being a charge which is given in accordance with arrangements which are approved by the Registrar and which provide that the society shall also take, as further security for each advance in respect of which such a charge is given to the society, a guarantee given by an assurance company.

6. A guarantee given in pursuance of a continuing arrangement which conforms to the requirements of Part II of this Schedule, being a guarantee supported by deposits of money made in pursuance of such an arrangement.

PART II

Requirements Applicable to Certain Continuing Arrangements.

In order to conform to the requirements of this Part of this Schedule, a continuing arrangement must provide:—

(a) that each guarantee given in pursuance of the arrangement by the person (hereinafter referred to as "the guarantor") with whom the society made the arrangement will secure repayment to the society —

(i) on account of the principal of the advance to which the guarantee relates, of a sum not less than the amount by which the advance exceeds two-thirds of the purchase price for the defraying of which the advance was made, and

(ii) of all sums which may accrue due to the society in respect of the advance (otherwise than on account of the principal thereof) before the sums repayable to the society on account of the said principal have been reduced to two-thirds of the said purchase price;

(b) that the guarantor will not be released from his liability in respect of any such guarantee until the sum repayable to the society in respect of the principal of the advance to which it relates has been reduced to or below an amount equal to two-thirds of the purchase price for the defraying of which the advance was made;

(c) that the guarantor will deposit with the society, as security for his liability in respect of each guarantee, a sum of money, which in the case of the first five guarantees shall be at least equal to the amount of the excess advance, and in the case of each subsequent guarantee shall be at least equal to one-third of that amount;

(d) that, subject to any right of withdrawal which may be given by the arrangement in conformity with the next following paragraph, each sum deposited as aforesaid will be held by the society, not only as security for the liability of the guarantor in respect of the guarantee in connection with which it was deposited, but also as security for such sums as may become due to the society in respect of all such advances made (whether before or after the deposit) in pursuance of the arrangement as are, for the time being, advances of which the sums repayable in respect of principal have not been reduced to the amount mentioned in paragraph (b) of this Part of this Schedule;

(e) that no withdrawal of or from the sums deposited with the society as aforesaid may be made by the guarantor unless the sums held by the society in accordance with the last foregoing paragraph as security in respect of the advances therein mentioned will, after the withdrawal, be of an amount at least equal to the sum of:—

(i) the amount by which the aggregate of the sums then repayable to the society in respect of the principal of such of the said advances as were included in the first five advances made by the society in pursuance of the arrangement exceeds two-thirds of the aggregate of the purchase prices for the defraying of which such of the said advances as were so included were made, and

(ii) one-third of the amount by which the aggregate of the sums then repayable to the society in respect of the principal of such of the said advances as were not included in the first five advances made by the society in pursuance of the arrangement exceeds an amount equal to two-thirds of the aggregate of the purchase prices for the defraying of which such of the said advances as were not so included were made.

SECOND SCHEDULE

Section 1—Creation of a Charge by Mortgage.

When a building society makes an advance upon the security of any land by way of mortgage the amount of such advance shall, if the conditions set out in paragraph 3 of this Schedule have been fulfilled, by virtue of this paragraph be a charge upon the land in favour of the mortgagee, notwithstanding the existence of, and with priority over, any right or title to or interest in such land adverse to the title of the mortgagor:

Provided that no right or title to or interest in the land of which the building society has express notice prior to the making of an advance on the security of the land or of which notice has been received by the Registrar by registered post within the period of three months immediately following the observance of the conditions set out in paragraph 3 of this Schedule shall be prejudiced by the operation of this paragraph.

Section 2—Creation of a Power of Sale and Power to Enter into Possession.

When a charge upon land arises under the provisions of paragraph 1 of this Schedule such charge shall create a power of sale and a power to enter possession of the land, and no sale or entry into possession under a mortgage to which the provisions of paragraph 1 of this Schedule relate shall be effected except in accordance with the provisions of this Schedule.

Section 3—Conditions Precedent to Creation of a Charge.

The conditions referred to in paragraph 1 of this Schedule shall be that the building society shall, not less than three months prior to the payment of the advance or any part thereof, have,

(a) published in the Gazette and in a daily newspaper ordinarily circulating in the area in which the land in question is situated a notice in the form set out in the Table to this Schedule,

(b) posted a like notice upon the land and, if there shall be a court house in the area of the local authority in which the land is situated, on such court house, and

(c) forwarded a copy of the notice in the form set out in the Table to this Schedule to the Registrar:

Provided that if any notice referred to in this sub-paragraph does not contain a full and accurate description of the land in question which may be by a plan attached to the notice, it shall not constitute a notice for the purpose of this paragraph.

Section 4—Register to be Maintained by Registrar.

The Registrar shall maintain a register setting out the land in respect of which a notice given under the provisions of paragraph 3 of this Schedule has been received by him and shall  enter on the register, immediately on receipt, any claims to any right or title to, or any interest in, land received by him to which such a notice relates, in proximity to the entry relating to the notice; and the register shall be arranged in such manner as to facilitate reference to entries therein by the locality of the land.

Section 5—Regulation of Exercise of Power of Sale, and Power to Enter into Possession.

A power of sale or power to enter into possession conferred by this Ordinance shall not be exercised unless and until—

(i) notice requiring payment of the mortgage money has been served on the mortgagor or one of two or more mortgagors, and default has been made in payment of the mortgage money, or of part thereof, for three months after such service; or

(ii) some interest under the mortgage is in arrear and unpaid for two months after becoming due;

(iii) there has been a breach of some provision contained in the mortgage deed, and on the part of the mortgagor, or of some person concurring in making the mortgage, to be observed or performed, other than and besides a covenant for payment of the mortgage money or interest thereon.

Section 6—Conveyance on Sale.

(a) A person exercising the power of sale conferred by this Ordinance shall have power, by deed, to convey the whole of the interest of the mortgagor in the property sold, freed from all estates, interests and rights to which the mortgage has priority, but subject to all estates, interests and rights which have priority to the mortgage:

Provided that, where the power of sale is exercised in a case in which there exists a right or title to or interest in the property sold, of which the person exercising the power of sale has notice, and which is adverse to the title of the mortgagor, the person exercising the power of sale shall not have power to convey any interest or estate in the property for a term exceeding sixty years, or in a case where the mortgage is of a term of years, and, under the instrument purporting to create such term, a term of less than sixty years remains unexpired, such term as so purports to remain unexpired:

Provided further that the person exercising the power of sale shall not in the exercise of that power convey an interest exceeding a term of sixty years in any land to a person who is not a citizen of Ghana within the meaning given to that expression by any law relating to Ghana citizenship in force in Ghana or which may hereafter be enacted.[As substituted by the Building Societies (Amendment) Act, 1957 (No. 9 of 1957), s.2]

(b) Where a conveyance is made in exercise of the power of sale conferred by the provisions of this Schedule, the title of the purchaser shall not be impeachable on the ground—

(i) that no case had arisen to authorise the sale; or

(ii) that due notice was not given; or

(iii) that the power was otherwise improperly or irregularly exercised;

and a purchaser shall not, either before or on conveyance, be concerned to see or inquire whether a case has arisen to authorise the sale, or due notice has been given, or the power is otherwise properly and regularly exercised; but any person damnified by an unauthorised, or improper, or irregular exercise of the power shall have his remedy in damages against the person exercising the power of sale.

(c) A conveyance on sale made after the commencement of this Ordinance by a mortgagee in relation to land mortgaged to a building society, shall be deemed to have been made in exercise of the power of sale conferred by the provisions of this Schedule unless the contrary be shown.

No.2 of 1952.

(d) For the avoidance of doubt it is hereby declared that the provisions of the Rent Control Ordinance, 1952, do not apply to a sale in exercise of the power of sale given under the provisions of this Schedule.

Section 7—Application of Proceeds of Sale.

The money which is received arising from a sale under the provisions of this Schedule, after discharge of prior incumbrances to which the sale is not made subject, if any, or after payment into court of a sum to meet any prior incumbrances, shall be held by the recipient in trust to be applied, first, in payment of all costs, charges, and expenses properly incurred as incident to the sale or any attempted sale, or otherwise; and secondly, in discharge of the mortgage money, interest, and costs, and other money if any, due under the mortgage; and the residue of the money so received shall be paid to the mortgagor or a person authorised to give receipts for the proceeds of the sale thereof.

Section 8—Provisions as to Exercise of Power of Sale.

(a) The person entitled to exercise the powers of sale conferred by the provisions of this Schedule shall not be answerable for any involuntary loss happening in or about the exercise or execution of the power of sale conferred by the provisions of this Schedule.

(b) At any time after the power of sale conferred by the  provisions of this Schedule has become exercisable, the person entitled to exercise the power may demand and recover from any  person, other than a person having in the mortgaged property an estate, interest, or right in priority to the mortgage, all the deeds and documents relating to the property, or to the title thereto, which a purchaser under the power of sale would be entitled to demand and recover from him.

Section 9—Rights Following Upon Entry into Possession.

(1) A person entering into possession of land under the power conferred by the provisions of paragraph 2 of this Schedule shall be entitled to receive all the income arising from the land except in so far as some other person is entitled thereto under rights preserved by the proviso to paragraph 1 of this Schedule, but shall not be entitled to enter into any lease; and entry into possession shall not prejudice the right of that person to exercise his power of sale.

(2) A person entitled to enter into possession under the provisions of this Schedule shall not be answerable for any involuntary loss happening in or about the exercise of the power to enter into possession conferred by the provisions of this Schedule.

Section 10—Application of Moneys Received on Entering into Possession.

Moneys received by a person, under the provisions of paragraph 9 of this Schedule, in consequence of entry into possession of land shall be held in trust by him to be applied, first in payment of all costs, charges and expenses properly incurred in, and in consequence of, entering into possession; and secondly in discharge of the mortgage money, interest and costs and other money, if any, due under the mortgage; and the residue of the money so received shall be paid to the mortgagor or a person authorised to give receipts therefor.

Section 11—Mortgagor Required to Purchase Interest Postponed on Creation of Charge.

A person who has any right or title to or interest in land which is—

(a) the subject of a charge under the provisions of paragraph 1 of this Schedule or,

(b) in which a leasehold interest has been created under the provisions of paragraph 6 of this Schedule,

and such right, title or interest is postponed to the charge of leasehold interest by reason of the provisions of this Schedule, may require the mortgagor in writing to acquire his right or interest in or title to the land. The price which the mortgagor shall pay to such person for such acquisition shall be the market value of the right, title or interest at the date when he so required the mortgagor to acquire it having no regard to the charge, upon the land in which the right, title or interest exists, created under paragraph 1 of this Schedule:

Provided that any improvements effected on the land subsequent to the creation of the charge thereon under the provisions of paragraph 1 of this Schedule shall be disregarded in ascertaining such market value.

TABLE

Notice is hereby given that the................................................................ .............................

Building Society intends to grant a loan to ..............................................................................

of............................... .........................on the security of......................................................

(description of plot of land and reference to plan attached where appropriate)...........................

whereof he claims to be.........................................................................................................                                             (interest claimed by applicant).

Any person claiming any right, title or interest to or in the land aforesaid adverse to the title of the applicant is required to lodge by registered post a claim in writing with the Registrar of Building Societies at.................................................................................(naming the office of the Registrar) within three months of the date hereof. If no such written claim is lodged as aforesaid any sum paid as a loan to the said ................................................(name of applicant) ........................on the security of the land referred to above will be a statutory charge upon the aforesaid land ranking in priority to the right, title or interest of any person which is adverse to the title of the applicant.

Dated this .............day of .................................., 195..........                             .................................                                                                                                       .................Building Society.

THIRD SCHEDULE

The .................Building Society hereby acknowledges to have received all moneys intended to be secured by the within (or above) written deed.

In witness whereof the seal of the society is affixed this........ day of ................by order of the Board of Directors (or Committee of Management) in the presence of........................Secretary (or Manager).

(L.S.)

(Other witnesses as may be required by the rules of the society).

This printed impression has been carefully compared by me with the Bill which has passed the Legislative Assembly, and found by me to be a true and correctly printed copy of the said Bill.

K. B. AYENSU

Clerk to the Legislative Assembly.

As amended by

BUILDING SOCIETIES (AMENDMENT) ACT, 1957 (NO.9 OF 1957)1

BUILDING SOCIETIES (AMENDMENT) ACT, 1959 (NO.59 OF 1959)2