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Building Societies Act 1965

Constitution of building societies - Functions and general powers of building societies

9E: Dealings between society and other persons

You could also call this:

“Rules for dealing with a building society”

When you deal with a building society, the society or someone guaranteeing its obligations can’t claim certain things against you or anyone who has acquired property, rights, or interests from the society. They can’t say that:

The society’s rules weren’t followed.

A person named as a director or secretary isn’t actually in that role, wasn’t properly appointed, or doesn’t have the usual authority.

Someone presented as an officer or agent wasn’t properly appointed or doesn’t have the usual authority.

Someone presented as having special authority doesn’t actually have it.

An officer or agent can’t confirm that a document is genuine or a true copy.

However, they can make these claims if you knew or should have known about these issues because of your position or relationship with the society.

The society also can’t claim a document wasn’t properly sealed if it appears to have the society’s seal and seems to be witnessed by two people, with one named or presented as a director and the other as a director or secretary. But they can make this claim if you knew or should have known that the seal wasn’t real, the witnessing wasn’t done properly, or the people weren’t actually in those roles.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371374.

Topics:
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9D: Registration of documents not to constitute constructive notice, or

"Registering or filing society documents doesn't mean everyone knows about them"

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9F: Effect of fraud, or

"Dealing with a building society is safe, even if someone has been dishonest"

Part 2 Constitution of building societies
Functions and general powers of building societies

9EDealings between society and other persons

  1. A society or a guarantor of an obligation of a society may not assert against a person dealing with the society or with any person who has acquired any property, rights, or interests from the society that—

  2. the rules of the society have not been complied with:
    1. a person named in a notice sent to the Registrar under section 88 as a director or secretary of the society—
      1. is not a director or secretary of the society, as the case may be; or
        1. has not been duly appointed; or
          1. does not have authority to exercise a power which a director or secretary of a society carrying on business of the kind carried on by the society customarily has authority to exercise:
          2. a person held out by the society as an officer or agent of the society—
            1. has not been duly appointed; or
              1. does not have authority to exercise a power which an officer or agent of a society carrying on business of the kind carried on by the society customarily has authority to exercise:
              2. a person held out by the society as an officer or agent of the society with authority to exercise a power which an officer or agent of a society carrying on business of the kind carried on by the society does not customarily have authority to exercise, does not have authority to exercise that power:
                1. an officer or agent of the society who has authority to issue a document on behalf of the society does not have authority to warrant that the document is genuine:
                  1. an officer or agent of the society who has authority to issue a certified copy of a document on behalf of the society or otherwise certify on behalf of the society does not have authority to warrant that the copy is a true copy or to so certify—
                      1. unless that person knows or by reason of that person's position with or relationship to the society ought to know of the matter referred to in paragraphs (a), (b), (c), (d), (e), or (f), as the case may be.

                    1. A society or a guarantor of an obligation of a society may not assert against a person dealing with the society or with any person who has acquired any property, rights, or interests from the society that a document has not been properly sealed by the society if—

                    2. the document is sealed with a seal which appears to be the seal of the society; and
                      1. the affixing of the seal appears to have been witnessed by 2 persons; and
                        1. at the time the document appears to have been sealed—
                          1. one of those persons was named in a notice sent to the Registrar under section 88, or was being held out by the society, as a director of the society; and
                            1. the other person was named in a notice sent to the Registrar under section 88, or was being held out by the society, as a director or secretary of the society—
                              2. unless that person knows or by reason of that person's position with or relationship to the society ought to know that—
                            2. the seal is not the seal of the society; or
                              1. the affixing of the seal was not witnessed by 2 persons; or
                                1. a person referred to in paragraph (c)(i) was not a director of the society; or
                                  1. a person referred to in paragraph (c)(ii) was not a director or secretary of the society, as the case may be.

                                    Notes
                                    • Section 9E: inserted (with effect on 1 January 1966, but not applying to or affecting any proceedings instituted or commenced before 1 September 1987), on , by section 4(1) of the Building Societies Amendment Act 1987 (1987 No 175).