2

3

4

5

• • (a) [Repealed]

  • (b) [Repealed]

  • (c) 

  • (d) 

  Sections 5(a) and 5(b) were repealed, as from 18 November 1964, by section 2(2) Industrial and Provident Societies Amendment Act 1964.

6

7 Protection of bona fide lenders

• A member or other person who in good faith lends money to or deposits money with a registered society shall not be bound to see to the application thereof or that the society has not exceeded its borrowing limit.

8 Rights of inspection of register of debenture holders and to copies of register and trust deed

• (1) Every register of holders of debentures of a registered society shall, except when duly closed (but subject to such reasonable restrictions as the society may in general meeting impose, so that not less than 2 hours in each day shall be allowed for inspection), be open to the inspection of the registered holder of any such debentures or any member of the society without fee, and of any other person on payment of a fee of 10c or such less sum as may be prescribed by the society.

  (2) Any such registered holder of debentures or member as aforesaid or any other person may require a copy of the register of the holders of debentures of the society or any part thereof on payment of 10c for every 100 words required to be copied.

  (3) A copy of any trust deed for securing any issue of debentures shall be forwarded to every holder of any such debentures at his request on payment in the case of a printed trust deed of the sum of 50c or such less sum as may be prescribed by the society, or, where a printed copy of the trust deed is not available, on payment of 10c for every 100 words required to be copied.

  (4) If inspection is refused or a copy is refused or not forwarded, the society and every officer of the society who knowingly and wilfully authorises or permits the default shall be liable to a fine not exceeding $10, and further shall be liable to a fine not exceeding $4 for every day during which the default continues.

  (5) Where a society is in default as aforesaid, a District Court may by order compel an immediate inspection of the register, or direct that the copies required shall be sent to the person requiring them.

  (6) For the purposes of this section, a register shall be deemed to be duly closed if closed in accordance with provisions contained in the rules of the society or in the debentures or, in the case of debenture stock, in the stock certificates, or in the trust deed or other document securing the debentures or debenture stock, during such period or periods, not exceeding in the whole 30 days in any year, as may be therein specified.

  Compare: 1933 No 29 s 84

9 Liability of trustees for debenture holders

• (1) Subject to the following provisions of this section, any provision contained in a trust deed for securing an issue of debentures, or in any contract with the holders of debentures secured by a trust deed shall be void in so far as it would have the effect of exempting a trustee thereof from or indemnifying him against liability for breach of trust where he fails to show the degree of care and diligence required of him as trustee, having regard to the provisions of the trust deed conferring on him any powers, authorities, or discretions.

  (2) The last preceding subsection shall not invalidate—

  • (a) Any release otherwise validly given in respect of anything done or omitted to be done by a trustee before the giving of the release; or

  • (b) Any provision enabling such a release to be given—

    • (i) On the agreement thereto of a majority of not less than three-fourths in value of the debenture holders voting in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose; and

    • (ii) Either with respect to specific acts or omissions or on the trustee dying or ceasing to act.

  (3) Subsection (1) of this section shall not operate—

  • (a) To invalidate any provision in force at the commencement of this Act so long as any person then entitled to the benefit of that provision or afterwards given the benefit thereof under the next succeeding subsection remains a trustee of the deed in question; or

  • (b) To deprive any person of any exemption or right to be indemnified in respect of anything done or omitted to be done by him while any such provision was in force.

  (4) While any trustee of a trust deed remains entitled to the benefit of a provision saved by the last preceding subsection, the benefit of that provision may be given either—

  • (a) To all trustees of the deed, present and future; or

  • (b) To any named trustees or proposed trustees thereof,—

  by a resolution passed by a majority of not less than three-fourths in value of the debenture holders voting in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose in accordance with the provisions of the deed or, if the deed makes no provision for summoning meetings, a meeting summoned for the purpose in any manner approved by a District Court.

  Compare: Companies Act 1948, s 88 (UK)

10 Perpetual debentures

• A condition contained in any debentures or in any deed for securing any debentures, whether issued or executed before or after the commencement of this Act, shall not be invalid by reason only that the debentures are thereby made irredeemable or redeemable only on the happening of a contingency, however remote, or on the expiration of a period, however long, any rule of equity to the contrary notwithstanding.

  Compare: 1933 No 29 s 85

11 Prohibiting reissue of redeemed debentures

• (1) A registered society shall have no power to reissue any debentures that it has redeemed.

  (2) Where a registered society has either before or after the commencement of this Act deposited any of its debentures to secure advances from time to time on current account or otherwise, the debentures shall not be deemed to have been redeemed by reason only of the account of the society having ceased to be in debit whilst the debentures remained so deposited.

12 Specific performance of contracts to subscribe for debentures

• A contract with a registered society to take up and pay for any debentures of the society may be enforced by an order for specific performance.

  Compare: 1933 No 29 s 87

13 Payment of certain debts out of assets subject to floating charge in priority to claims under the charge

• (1) The debts that in every liquidation are under the provisions of Part 16 and Schedule 7 of the Companies Act 1993 relating to preferential payments to be paid in priority to all other debts must, if a registered society is not in liquidation at the time, be paid in priority to any claim for principal or interest in respect of the security interest, out of—

  • (a) any accounts receivable and inventory (or their proceeds) coming into the hands of the receiver who is appointed on behalf of persons who have, over those assets, a security interest that—

    • (i) is not a purchase money security interest that has been perfected at the time specified in section 74 of the Personal Property Securities Act 1999; and

    • (ii) is not a security interest that has been perfected under the Personal Property Securities Act 1999 at the time of the receiver's appointment, or at the time at which possession of the property was taken, as the case may be, and that arises from the transfer of an account receivable for which new value is provided by the transferee for the acquisition of that account receivable (whether or not the transfer of the account receivable secures payment or performance of an obligation); or

  • (b) any accounts receivable or inventory (or their proceeds) coming into the hands of any other person who has taken possession of all or any part of the society's property by or on behalf of the persons who have that security interest.

  (2) In the application of Schedule 7 of the Companies Act 1993, references to the commencement of the liquidation must be read as a reference to the appointment of the receiver or the taking possession of the property, as the case may be.

  (3) The periods of time referred to in Part 16 of, and Schedule 7 to, the Companies Act 1993 shall be taken from the date of the appointment of the receiver or on which possession of the property was taken, as the case may be.

  (4) Any payments made under this section shall be recouped as far as may be out of the assets of the society available for payment of general creditors.

  (5) In this section, the terms account receivable, inventory, new value, proceeds, purchase money security interest, and security interest have the same meanings as in the Personal Property Securities Act 1999.

  (6) The provisions of this section, as in force immediately before the commencement of the Personal Property Securities Act 1999, continue to apply in respect of a registered society's property that was subject to a floating charge that, before the commencement of that Act, became a fixed or specific charge.

  Compare: 1933 No 29 s 88

  The original subsection (1) was amended, as from 1 July 1994, by section 4(1) Industrial and Provident Societies Amendment Act 1993 (1993 No 115) by substituting the words “liquidation, the debts which in every liquidation are under the Provisions of Part 16 of, and Schedule 7, to the Companies Act 1993” for the words “course of being wound up, the debts which in every winding up are under the provisions of Part 6 of the Companies Act 1955”.

  Subsection (1) was substituted, as from 1 May 2002, by section 191(1) Personal Property Securities Act 1999 (1999 No 126). See Part 12 Personal Property Securities Act 1999 (1999 No 126) for transitional provisions. See clause 2 Personal Property Securities Amendment Act Commencement Order 2002 (SR 2002/63).

  Section 13(1)(a)(i): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

  Section 13(1)(a)(ii): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

  Section 13(2): substituted, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

  Subsection (3) was substituted, as from 1 July 1994, by section 4(3) Industrial and Provident Societies Amendment Act 1993 (1993 No 115).

  Subsection (5) was inserted, as from 14 October 1981, by section 6(2) Industrial and Provident Societies Amendment Act 1981 (1981 No 42).

  Subsection (5) was substituted, and subsection (6) was inserted, as from 1 May 2002, by section 191(1) Personal Property Securities Act 1999 (1999 No 126). See Part 12 Personal Property Securities Act 1999 (1999 No 126) for transitional provisions. See clause 2 Personal Property Securities Amendment Act Commencement Order 2002 (SR 2002/63).

14

• [Repealed]

  Section 14 was repealed, as from 1 July 1994, by section 4(5) Industrial and Provident Societies Amendment Act 1993 (1993 No 115).

15 Commencement of this Part

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

16 Interpretation

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

17 Registration of charges created by societies

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

  Subsection (2)(cc) was inserted, as from 1 April 1990, by section 67 Motor Vehicle Securities Act 1989 (1989 No 14).

  Subsection (2)(cd) was inserted, as from 19 December 1989, by section 139(3) Radiocommunications Act 1989 (1989 No 148).

18 Unregistered charges to be void in certain cases

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

19 Duty of society to register charges existing on property acquired

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

20 Register of charges to be kept by Registrar

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

21 Endorsement of certificate of registration on debentures

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

22 Entries of satisfaction and release of property from charge

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

23 Rectification of register of charges

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

24 Registration of enforcement of security

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

25 Copies of instruments creating charges to be kept by society

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

26 Society's register of charges

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

27 Right to inspect copies of instruments creating charges and society's register of charges

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

28 This Part to bind the Crown

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.

29 Registration of charges created, and charges on property acquired, by society before commencement of this Part

• [Repealed]

  Part 2, comprising sections 15-29, was repealed, as from 1 May 2002, by section 192(1) Personal Property Securities Act 1999 (1999 No 126). See also Part 12 of that Act for transitional provisions.