33Raising loans

33 Raising loans

(1) With the approval of the registrar a society may raise money on loan in such manner as it thinks fit, and in particular, without limiting the generality of the foregoing, by legal or equitable mortgage charged upon the undertaking of the society or upon all or any part of the property and rights (both present and future) of the society, including its unpaid capital, subscriptions, payments in respect of advances and other moneys.

S. 33(1A) inserted by No. 36/1990 s. 14(2).

(1A) With the approval of the registrar, a society may raise money—

(a) by granting a right, entitlement or interest in or in respect of; or

(b) by the transfer or assignment of—

its interest under a mortgage of freehold land.

S. 33(1B) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).

(1B) With the approval of the registrar and subject to such conditions as the registrar determines, a society may assign or transfer its interest under a mortgage of freehold land for the purpose of—

(a) raising money for the repayment by the society in whole or in part of any loan made to the society; or

(b) extinguishing the loan.

S. 33(1C) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).

(1C) A society must, if the registrar so directs, assign or transfer its interest under a mortgage of freehold land for a purpose referred to in subsection (1B).

S. 33(1D) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).

(1D) The registrar must not give a direction under subsection (1C) unless satisfied that the assignment or transfer would not disadvantage the members of the society.

S. 33(1E) inserted by No. 37/1999 s. 58(Sch. 2 Pt 2 item 3).

(1E) Upon the assignment or transfer under subsection (1B) or (1C) of a mortgage given by a member to a society—

(a) the shares of the member in the society related to the mortgage are cancelled; and

(b) the member ceases to be a member by reason of that mortgage;

(c) the amount owing by the member under or in respect of the mortgage is reduced by the amount (if any) paid up in respect of the shares.

(2) A society shall not be authorized to receive money on deposit.

S. 33(3) repealed by No. 6821 s. 6.

(4) Except as may be provided in any agreement made in relation to a guarantee executed by the Treasurer of Victoria under this Act, no person lending money to a society shall be bound to see to the application thereof or be in any way affected or prejudiced by the fact that such society in borrowing such money has contravened the provisions of this or any other section of this Act or the rules of the society.