Building Societies Act 1965

Office management

89 Office management

(1)

Every society shall establish and maintain a system to ensure the safe custody of all mortgage instruments, deeds, and documents of title belonging to or held by the society.

(2)

A society shall not be taken to have established a proper system under this section unless, under the system, on each occasion on which any such instrument, deed, or document of title is released from such safe custody, the consent is obtained of the board of directors or of a person authorised by the board to give such consent.

(3)

If a director of a society—

(a)

fails to take all reasonable steps to ensure compliance by the society with this section; or

(b)

has by his or her own wilful act been the cause of any default by the society thereunder—

he commits an offence and shall be liable on conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding $400, or to both.

(4)

It shall be a defence to a charge of an offence against paragraph (a) of subsection (3) to prove that the person charged had reasonable grounds to believe, and did believe, that a competent and reliable person was charged with the duty of seeing that the requirements of this section were complied with and was in a position to discharge that duty.

Compare: Building Societies Act 1962 ss 76(3)–(5), 79(1) (UK)

Section 89(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).