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New Zealand law explained for everyone

Building Societies Act 1965

Investment and borrowing

56D: Home ownership accounts and farm ownership accounts

You could also call this:

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

You can keep money in special accounts called home ownership accounts or farm ownership accounts with certain building societies. These societies are called approved societies. The Governor-General needs to say it's okay for a society to offer these accounts.

Approved societies can run these accounts following rules set by the government. No other societies are allowed to have these accounts or say they can offer them.

If a society breaks these rules, the society and its leaders can get in trouble.

When the Governor-General says a society can offer these accounts, this decision is a type of law that needs to be made public in a special way.

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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=DLM371769.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Savings and retirementHousing and property > Buying and selling homes
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"Building societies can decide how to protect themselves when they owe money"

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56E: Depositor under age of 20, or

"Young people can get money back from building societies"

Part 5AInvestment and borrowing

56DHome ownership accounts and farm ownership accounts

  1. Without limiting section 56B, any society which is for the time being designated under section 56F, or deemed to be so designated, as a society with which trustees may invest trust funds by way of deposit, may, with the approval of the Governor-General by Order in Council, accept deposits from its members in home ownership accounts or farm ownership accounts (any such society being referred to in this section as an approved society).

  2. Home ownership accounts or farm ownership accounts may be operated by an approved society upon such terms and conditions as may be specified in regulations made under this Act.

  3. It shall not be lawful for any society, other than an approved society, to accept or hold itself out as willing to accept deposits in home ownership accounts or farm ownership accounts.

  4. If any society contravenes any provision of this section that is applicable to it, the society, and every officer of the society who is in default, shall be guilty of an offence against this Act.

  5. An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Notes
  • Section 56D: inserted, on , by section 12 of the Building Societies Amendment Act 1987 (1987 No 175).
  • Section 56D(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).