New South Wales Consolidated Acts

CO-OPERATIVE HOUSING AND STARR-BOWKETT SOCIETIES ACT 1998 - SECT 55

55 Restrictions on borrowings by co-operative housing societies

(1) A co-operative housing society that raises money on loan by means of any one or more of the following kinds of loan must not raise money by means of any other kind of loan:

(a) loans made by lenders pursuant to three-party loan and guarantee agreements as referred to in section 4A of the Government Guarantees Act 1934 , section 17AC of the Co-operation Act 1923 or section 60 (Treasurer’s guarantee for co-operative housing society loans) of this Act,

(b) loans made by the Rental Bond Board pursuant to the Landlord and Tenant (Rental Bonds) Act 1977 ,

(c) loans made from the Home Purchase Assistance Fund, or loans made by any person on behalf of the Treasurer from any other public account of the State,

(d) loans made by a lender prescribed by the regulations for the purposes of this section.

(2) Where a co-operative housing society raises money on loan by means of a loan of a kind referred to in subsection (1), the society must not:

(a) create any mortgage, charge or lien or issue any debenture or bond other than:

(i) in the case of a loan of a kind referred to in subsection (1) (a)-a charge in favour of the Treasurer over the securities given to the society by its members in respect of loans made or to be made from money raised by the loan of that kind, or

(ii) in the case of a loan of a kind referred to in subsection (1) (b), (c) or (d)-a charge in favour of the lender over the securities given to the society by its members in respect of loans made or to be made from money raised by the loan of that kind, or

(b) enter into any agreement which provides for the appointment of a receiver or manager of the property of the society.