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New Zealand law explained for everyone

Building Societies Act 1965

Constitution of building societies - Rules of society

18: Effect of rules

You could also call this:

"Rules of a building society apply to everyone involved and visitors don't need to check if the society follows its own rules"

When you join a building society, you agree to follow its rules. These rules apply to everyone who is a member or works for the society. The rules also affect anyone who might get money or benefits because of a member or because of the rules themselves. Everyone is expected to know and understand these rules.

If you lend money to a building society or do other business with them, you don't need to check if they're following their own rules about borrowing money. You can assume they're doing the right thing.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371398.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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17: Contents of rules, or

"Rules tell you what a building society must do and how it works"

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19: Alteration of rules, or

"How to change the rules of a society"

Part 2Constitution of building societies
Rules of society

18Effect of rules

  1. The rules of a society shall be binding on every member and officer of the society, and on all persons claiming on account of any member or under the rules; and all such members, officers, and persons shall be deemed to have full notice of the rules.

  2. No lender or other person dealing with a society shall be concerned to see or inquire whether any restriction on the power of a society to borrow money imposed by the rules of a society is observed.

Notes
  • Section 18: replaced, on , by section 7 of the Building Societies Amendment Act 1987 (1987 No 175).