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Building Societies Act 1965

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

9F: Effect of fraud

You could also call this:

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

Section 9E still applies even if someone acts dishonestly or creates a fake document for the building society. This means that if you're dealing with the society or someone who got property or rights from the society, you can trust what they say or do. However, this protection doesn't apply if you actually know about the dishonesty or fake document. In other words, if you don't know about any tricks, you're safe to deal with the society or people connected to it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371376.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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9E: Dealings between society and other persons, or

"Rules for dealing with a building society"

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

9FEffect of fraud

  1. Section 9E applies notwithstanding the fact that a person referred to in any of the provisions of paragraphs (b) to (f) of subsection (1) or paragraph (c) of subsection (2) of that section—

  2. acts fraudulently; or
    1. forges a document that purports to have been sealed on behalf of the society—
        1. unless the person dealing with the society or with the person who has acquired any property, rights, or interests from the society has actual knowledge of the fraud or forgery.

      Notes
      • Section 9F: 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).