Building Societies Act, 1989

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Other loans.

23.—(1) Subject to this section, a building society may make loans, including, with the approval of the Central Bank, loans in a currency other than the currency of the State, other than housing loans, of the following categories—

(a) loans fully secured by the mortgage of freehold or leasehold estate or interest;

(b) loans to members, before the mortgage has been created, not exceeding the amount which the society has agreed to lend by way of a housing loan;

(c) loans fully secured by one or more securities or guarantees of such description as are from time to time specified by the Central Bank;

(d) loans to be applied in or towards payment of the deposit for the purchase of freehold or leasehold estate or interest that will secure a loan by way of mortgage but such a loan may not exceed 15 per cent., or such other percentage as may be prescribed by the Central Bank, of the amount to be paid for the purchase of the estate or interest;

(e) loans, whether unsecured or secured to any extent, to an individual for the provision or improvement of accommodation for himself or his family; and

(f) loans, including loans on overdraft or other facility accounts, whether unsecured or secured to any extent, to any person.

(2) The power to make loans under subsection (1) is subject to—

(a) section 36 in the case of loans under paragraphs (e) and (f) of that subsection, and

(b) any limit which may be specified by the Central Bank in relation to—

(i) the amount of a loan under any of the categories referred to in subsection (1),

(ii) the amount outstanding at any time, to a person or persons acting in concert, on a loan or loans of a particular category or combination of categories,

by reference to such matters as the Bank considers appropriate.

(3) A society shall take all reasonable steps to ensure that the mortgage referred to in paragraph (b) of subsection (1) is created as soon as may be after the making of a loan under the said paragraph.