CO-OPERATIVE HOUSING SOCIETIES ACT 1958 - SECT 33 Raising loans
CO-OPERATIVE HOUSING SOCIETIES ACT 1958 - SECT 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.
S. 33(1A) inserted by No. 36/1990 s. 14(2).
(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.
S. 33(1B) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).
(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.
S. 33(1C) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).
(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).
S. 33(1D) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).
(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.
S. 33(1E) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).
(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.
S. 33(3) repealed by No. 6821 s. 6.
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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.
S. 33(5) amended by No. 11/2001 s. 3(Sch. item 15.3).
(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.
S. 33(12) amended by No. 57/1989 s. 3(Sch. item 33.1(a)(b)).
(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 .
S. 33A inserted by No. 36/1990 s. 15.