Building Societies Act, 1989

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Transfer of engagements.

96.—(1) Subject to compliance with section 97 , a building society may transfer its engagements to any extent to another society which, in accordance with this section, undertakes to fulfil the engagements.

(2) A society, in order to—

(a) transfer its engagements to any extent, or

(b) undertake to fulfil the engagements of another society,

must resolve to do so by a special resolution or, if the Central Bank consents in either case in circumstances where it considers it expedient to do so, by resolution of the board of directors.

(3) The extent of the transfer, as so resolved by the society making and the society taking the transfer, shall be recorded in an instrument of transfer of engagements.

(4) A transfer of engagements between societies shall be of no effect unless—

(a) the transfer is confirmed by the Central Bank under section 98 , and

(b) a registration certificate is issued in respect of the transfer under subsection (5).

(5) Where the Central Bank confirms a transfer of engagements between societies, it shall—

(a) register a copy of the instrument of transfer of engagements, and

(b) issue a registration certificate to the society taking the transfer,

and, on such date as is specified in the certificate and to the extent provided in the instrument of transfer of engagements, the property, rights and liabilities of the society transferring its engagements shall, by virtue of this subsection, stand transferred to and vested in the society taking the transfer.

(6) The Central Bank shall keep a copy of the instrument and of the registration certificate issued under subsection (5) in the public files of the societies involved.

(7) Where all its engagements have been transferred, a society shall, by virtue of this subsection, be dissolved on the date specified in the registration certificate; but the transfer effected by subsection (5) shall be deemed to have been effected immediately before the dissolution.