Victorian Consolidated Legislation

Co-operative Housing Societies Act 1958 - SECT 33

Raising loans

33. Raising loans



(1) With the approval of the registrar a society may raise money on loan in
such manner as it thinks fit, and in particular, without limiting the
generality of the foregoing, by legal or equitable mortgage charged upon the
undertaking of the society or upon all or any part of the property and rights
(both present and future) of the society, including its unpaid capital,
subscriptions, payments in respect of advances and other moneys.

(1A) With the approval of the registrar, a society may raise money-

   (a)  by granting a right, entitlement or interest in or in respect of; or

   (b)  by the transfer or assignment of-

its interest under a mortgage of freehold land.

(1B) With the approval of the registrar and subject to such conditions as the
registrar determines, a society may assign or transfer its interest under a
mortgage of freehold land for the purpose of-

   (a)  raising money for the repayment by the society in whole or in part of
        any loan made to the society; or

   (b)  extinguishing the loan.

(1C) A society must, if the registrar so directs, assign or transfer its
interest under a mortgage of freehold land for a purpose referred to in
subsection (1B).



(1D) The registrar must not give a direction under subsection (1C) unless
satisfied that the assignment or transfer would not disadvantage the members
of the society.

(1E) Upon the assignment or transfer under subsection (1B) or (1C) of a
mortgage given by a member to a society-

   (a)  the shares of the member in the society related to the mortgage are
        cancelled; and

   (b)  the member ceases to be a member by reason of that mortgage;

   (c)  the amount owing by the member under or in respect of the mortgage is
        reduced by the amount (if any) paid up in respect of the shares.

(2) A society shall not be authorized to receive money on deposit.



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(4) Except as may be provided in any agreement made in relation to a guarantee
executed by the Treasurer of Victoria under this Act, no person lending money
to a society shall be bound to see to the application thereof or be in any way
affected or prejudiced by the fact that such society in borrowing such money
has contravened the provisions of this or any other section of this Act or the
rules of the society.

(5) Where the Treasurer of Victoria pursuant to Division one of Part V of this
Act executes a guarantee in favour of any authorised deposit-taking
institution or approved body guaranteeing the repayment of any loan to be made
by such authorised deposit-taking institution or approved body to any society
registered under this Act, then notwithstanding anything to the contrary in
any Act or in any memorandum or articles of association or rules, such
authorised deposit-taking institution or approved body shall be deemed to be
empowered to make such loan out of any funds held by it which it is authorized
to invest and in respect of which investment on loan as aforesaid is not
specifically prohibited by the terms of any trust governing such funds.

(6) Any mortgage given as security for any money raised on loan by a society
under the powers conferred by this section may within thirty days after its
execution be registered by filing in the office of the registrar a true copy
thereof verified by statutory declaration.

(7) The registrar shall cause to be entered in a register to be kept by him
for the purpose short particulars (including the names of the parties and the
consideration) of every copy mortgage so filed with him with a memorandum of
the date hour and time at which each of them is so filed, and that date hour
and time shall in the case of each mortgage be the date hour and time of
registration.

(8) The registrar may at any time, upon evidence being given to his
satisfaction that the debt for which any registered mortgage was given has
been paid or satisfied, or that a discharge of mortgage as to the whole or any
part of the property mortgaged has been executed, cause a memorandum to that
effect to be entered in the register.

(9) The register so kept and every copy mortgage filed as aforesaid shall be
open to inspection at the office of the registrar by any person on payment of
the prescribed fee (if any).

(10) A mortgage shall not, unless registered in accordance with this section,
be of any validity as against any subsequent mortgagee whose mortgage is duly
registered in accordance with this section before the registration of such
first-mentioned mortgage except in the case of fraud; and, except in the case
of fraud, the priority of all mortgages duly registered in accordance with
this section shall be determined by the order of registration and not of date,
and shall not be affected by notice actual or constructive of any unregistered
mortgage, or of any contract therefor, and the knowledge that any such
mortgage, or contract is in existence shall not of itself be imputed as fraud;
and every second or subsequent mortgage shall, if duly registered in
accordance with this section, become, upon such registration and upon
satisfaction of all prior mortgages registered in accordance with this
section, a first mortgage.

(11) Where before the commencement of the Co-operative Housing Societies Act
1946 any such mortgage as aforesaid has been given by a society and has not
been wholly satisfied, and a true copy of the mortgage has been filed in
accordance with subsection (6) of this section within thirty days after the
commencement of the said Act, the mortgage shall, except in the case of fraud,
be deemed to have been registered as at the date of execution thereof, and the
particulars and memorandum thereof shall be entered in the register
accordingly, and the provisions of subsections (8), (9), (10), and (12) of
this section shall apply with respect to such mortgage accordingly.

(12) The Supreme Court, on being satisfied that the omission to register a
mortgage within the time required by this section or the omission or
mis-statement of any particular with respect to any such mortgage or in any
memorandum of satisfaction was accidental or due to inadvertence or to some
other sufficient cause or is not of a nature to prejudice the position of
creditors or members of the society or that on any other grounds it is just
and equitable to grant relief, may on the application of the society or any
person interested and on such terms and conditions as seem to the Court just
and expedient order that the time for registration be extended or (as the case
may be) that the omission or mis-statement be rectified.

(13) Nothing in the last seven preceding subsections shall apply to any
mortgage solely of specific land duly registered in accordance with the
Property Law Act 1958 or the Transfer of Land Act 1958.