A building society can choose how to protect itself when it owes money or has other responsibilities. It can do this in any way it thinks is best. This means the society can decide how to make sure it keeps its promises, like paying back money it has borrowed. The society has the freedom to pick the method that works best for them to secure their debts and obligations.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371767.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homes

56B: Borrowing powers, or

"Building societies can borrow money with certain rules"

56D: Home ownership accounts and farm ownership accounts, or

"Special savings accounts for homes and farms at approved building societies"

Part 5AInvestment and borrowing

56CPower to give security

A society may secure the payment of money and the performance of any other obligation of the society in such manner as the society thinks fit.

Notes

Section 56C: inserted, on 1 September 1987, by section 12 of the Building Societies Amendment Act 1987 (1987 No 175).