Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

Investment and borrowing

56A: Investment powers

You could also call this:

"Building societies can invest their money in different ways"

You can invest money that belongs to your building society or that you get while doing business. You can invest it in two ways:

  1. You can use the money for anything that helps your society do its job.

  2. If you don't need the money right away to do your society's job, you can invest it in any way you think is good.

Remember, you still need to follow any rules your society has about investing. Also, when we talk about investing, we're not just talking about the ways mentioned in sections 9A and 9B of the law. You can do other types of investing too.

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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=DLM371763.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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55A: Societies to hold certain public securities, or

"Old rule about societies holding special money has been removed"

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56B: Borrowing powers, or

"Building societies can borrow money with certain rules"

Part 5AInvestment and borrowing

56AInvestment powers

  1. Without limiting the generality of section 9A or section 9B, but subject to any restriction contained in the rules of the society, a society may invest any money belonging to it or acquired in the course of its business—

  2. for any purpose connected with the functions of the society; or
    1. to the extent that any money is not immediately required for the performance of the functions of the society, in any other manner that the society thinks fit.

      Notes
      • Section 56A: inserted, on , by section 12 of the Building Societies Amendment Act 1987 (1987 No 175).