Co-operation (Amendment) Act 1947 (NSW)

CO-OPERATION (AMENDMENT) ACT.

Act No. 4, 1947.

An Act to amend the Co-operation Act, 1923-

(Amendment) Act, 1947." (2)

1945, in certain respects; and for purposes

connected therewith. [Assented to, 26th

March, 1947.]

BE it enacted by the King's Most Excellent Majesty, lative Council and Legislative Assembly of New South by and with, the advice and consent of the Legis-	Wales in Parliament assembled, and by the authority of
the same, as follows :—

1 . (1) This Act may be cited as the "Co-operation

(2) The Co-operation, Communi ty Sett lement, and
Credi t Act, 1923, as amended by subsequent Acts and by
this Act, may be cited as the Co-operation Act, 1923-1947.

2.   The Co-operation Act, 1923-1945, is amended—

(a) by omitting from subsection one of section 17A all words beginning with the words " A n y such a g r e e m e n t " and ending with the words

" M i n i s t e r of the C r o w n " ;

(b) by omitting subsection (1A) of the same section and by inser t ing in lieu thereof the following subsections:—

(1A) Where a building society proposes to lend money to a member who is not a l ready the owner of a dwelling-house, and

(a)	such money is to be lent for the purpose of enabling him to purchase land upon which a dwelling-house is a l ready erected or to purchase land and erect a dwelling thereon or to erect a dwelling-house on land a l ready owned by h im; and
(b)	the dwelling-house is to be occupied by the member to whom the money is to be
lent ; and
(c)	the amount proposed to be lent does not exceed one thousand five hundred and
forty p o u n d s ; and
(d)	the amount proposed to be lent reduced by the value of the share capi tal of the

member exceeds eighty pe r centum but

does not exceed ninety pe r centum of the value of the land and the dwelling- house erected or to be erected thereon as ascer ta ined in such manne r as the Co-operative Building Advisory Com­ mit tee const i tuted under this Act d i rec t s ;

the Colonial T r e a s u r e r may, with the approva l of the Governor, enter into an agreement with the building society propos ing to lend such

money,

money, and may by such agreement under take to indemnify such society agains t such of the loss sustained by tha t society in respect of the loan as is directly a t t r ibutable to the fact tha t the amount so lent reduced by the value of the sha re capital of the member exceeded eighty pe r centum of the value of the land and dwelling- house as ascer ta ined in accordance with pa ra ­ g r a p h (d) of this subsection.

The power to enter into an agreement under th is subsection may also be exercised, subject t o subsection (2A) of this section, in any of the following cases, tha t is to say—

(i)   where a building society has, either before or af ter the commencement of the Co-operat ion (Amendment ) Act, 1947, a r r a n g e d to lend, for one of the purposes re fer red to in p a r a g r a p h (a) of this subsection, to a member who, a t the date of the a r rangement , was not a l ready the owner of a dwelling house, a n amount which, reduced by the value of the share capi ta l of the member, exceeds eighty pe r centum but does not exceed ninety per centum of the value of the land and dwelling house ascer­ ta ined in accordance with p a r a g r a p h

(d) of this subsection, and has

advanced to the member the whole or p a r t of the amount a r r anged to be len t ;

(ii) where a building society has, either

before or af ter the commencement of the Co-operat ion (Amendment) Act, 1947, a r r anged to lend, for one of the purposes referred to in p a r a g r a p h (a) of this subsection, to a member who, a t the da te of the a r rangement , was not a l ready the owner of a dwelling house, an amount which, reduced by the value of the share capi tal of the member, does not exceed eighty per centum of the value of the land and dwelling house

B ascer ta ined

ascer ta ined in accordance with p a r a ­ g r a p h (d) of this subsection and h a s advanced to the member the whole or p a r t of the amount a r r a n g e d to be lent, and, ei ther before or after such com­ mencement, has made or agreed to make or is p r e p a r e d to enter into an a r r angemen t to make a fur ther advance for the ca r ry ing into effect of the same purpose , and the to ta l sum which com­ pr ises the amount a r r anged to be lent and the fur ther advance, reduced by t h e value of the share capi tal of the mem­ ber, exceeds eighty pe r centum but does not exceed ninety pe r centum of the value of the land and dwelling house as so ascertained.

The power to enter into an agreement u n d e r this subsection may also be exercised, subject to subsection (2A) of this section, so as to en t e r into an agreement with a building society in subst i tut ion for an ear l ier agreement unde r th is subsection or subsection one of this section where the building society has , ei ther before o r af ter the commencement of the Co-operat ion (Amendment) Act, 1947, a r r a n g e d to lend, fo r one of the purposes refer red to in p a r a g r a p h (a ) of this subsection, to a member who a t t h e da te of the a r r angemen t is not a l ready the owner of a dwelling house, an amount which, reduced by the value of the share capi tal of the member—

(i)in the case where the earlier agreement

was entered into under this subsection, exceeds eighty pe r centum but does not exceed ninety per centum of the value of the land and dwelling house ascer­ ta ined in accordance with p a r a g r a p h (d) of this subsection; or

(ii)   in the case where the earlier agreement was entered into under subsection one of this section, exceeds eighty per cen­ tum bu t does not exceed the value of

t h e

the land and dwelling house as ascer­ ta ined in accordance with p a r a g r a p h (d) of tha t subsection;

a n d has advanced to the member the whole or p a r t of the amount a r r a n g e d to be lent and, e i ther before or after such commencement, has m a d e or agreed to make or is p r epa red to enter into an a r r angemen t to make a fur ther advance for the ca r ry ing into effect of the same purpose and the total sum which comprises the amount a r r a n g e d to be lent and the fur ther advance, reduced by the value of the share capital of the member does not exceed ninety per centum of t h e value of the land and dwelling house as so ascer ta ined.

(1B) Any agreement re fer red to in subsection one or subsection (1A) of this section shall opera te and have effect unti l the r eg i s t r a r certi­ fies to the Governor tha t the amount owing to the society by the member in respect of the loan to which the agreement relates, reduced by the value of the share capital of the member is not more than sixty-six and two-thirds pe r centum of the value of the land and dwelling-house as ascer ta ined in such manner as the Co-operative Bui lding Advisory Committee consti tuted under th is Act directs .

(1c) The ins t rument evidencing any agree­
ment entered into under this section may be

signed by the Colonial T r e a s u r e r or for and on

behalf of the Colonial T r e a s u r e r by any other	Minis ter of the Crown.
( I D ) The value of the share capital of a mem­ ber of any society shall, for the purposes of this section, be calculated in such manne r as the Co-operative Bui lding Advisory Committee const i tu ted under this Act may direct.
Any such direction shall be given in relat ion to the society specified in the direction and shall no t be a l tered while any agreement with tha t society under this section has effect.

(c)

(c) by inser t ing in subsection two of the same section af ter the words "subsec t ion o n e " the words " o r subsection (1A) ";

(d) (i) by inser t ing in subsection (2A) af ter t h e words "subsec t ion o n e " where firstly and secondly occurr ing the words ' ' or subsection

( 1 A ) " ;

(ii)    by omit t ing from p a r a g r a p h (b) of the same subsection all words af ter the word " p r e ­ sc r ibed" and by inser t ing in lieu thereof t he

words " b y p a r a g r a p h (c) of subsection one

or by p a r a g r a p h (c) of subsection (1A) of

this section, as the case may b e ; a n d " .

3. (1) This section shall apply to every agreement which was entered into before the commencement of t h i s Act, between a building society duly regis tered under t he Co-operation, Communi ty Set t lement , and Credi t Act , 1923, as amended by subsequent Acts , and the Colonial T rea su re r , and which is in force a t such commence­ ment , whereby in considerat ion of the execution by the Colonial T r e a s u r e r p u r s u a n t to the Government Guaran tees Act, 1934-1943, of a guaran tee in favour of t he bank society or body of persons mentioned in the agree­ ment (which bank society or body of persons is in th i s section re fe r red to as " t h e l e n d e r " ) the building society under takes to observe the covenants s t ipulat ions and conditions specified in the agreement .

(2) Notwi ths tanding any th ing contained in any agreement to which this section applies, the agreement shall not opera te to preclude the building society which i s a p a r t y there to from making, out of moneys borrowed by

i t f iom the lender, advances to a member of the society	to the extent and in the circumstances contemplated by
subsection (1A) of section 17A of the Co-operat ion Act , 1923-1945, as amended by this Act.

ROYAL