Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

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

11: Power to raise and repay funds

You could also call this:

"Building societies can get and give back money using shares"

You can get money for your building society by selling shares. These shares can be different sizes and you can sell them in different ways. People can pay for the whole share at once, or they can pay a little bit at a time. The shares might also earn interest, which means they grow in value over time.

When your building society doesn't need the money anymore, you can give it back to the people who bought the shares. But before you do this, you need to make sure you have enough money to pay back anyone who has put money into the society as a deposit and wants it back. You must pay these people first before you can pay back the people who bought shares.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371380.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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"Two types of building societies: ongoing and time-limited"

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"Building societies can't do things with land anymore"

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

11Power to raise and repay funds

  1. A society may from time to time raise funds by the issue of shares of 1 or more denominations, either as shares paid up in full or as shares to be paid by periodical or other subscriptions, and with or without accumulating interest.

  2. The society may repay any funds so raised when they are no longer required for the purposes of the society: provided that whenever the society proposes to repay any such funds it shall not do so until provision has been made by it to meet applications that have then been duly made by depositors for the repayment of money deposited by them with the society.

Compare
  • 1908 No 18 s 8
  • Building Societies Act 1962 s 6 (UK)