§ ' .—(1) Subject to the provisions of this section, a building society may make mobile home loans to individuals, whether or not they are members of the society.
§ (2) A mobile home loan is a loan secured by a mortgage of a mobile home, with or without other security.
§ (3) No such loan shall be made unless the building society, when it makes the loan, is satisfied that—
- (a) the borrower or a dependant of his of a prescribed description is or will be entitled under an agreement to which the Mobile Homes Act 1983 applies to station the mobile home on land forming part of a protected site;
- (b) the mobile home is for the residential use of the borrower or a dependant of his of a prescribed description;
- (c) the amount lent will not exceed the amount likely to be realised on a sale of the mobile home on the open market; and
- (d) subject to subsection (4) below, no other mortgage of the mobile home which is to secure the loan is outstanding in favour of a person other than the society.
§ (4) The requirement in subsection (3)(d) above shall be treated as satisfied if the loan is made on terms that the other loan is redeemed or postponed to it.
§ (5) A building society shall not make a mobile home loan to an individual if the principal exceeds—
- (a) the limit for the time being imposed by or under subsection (6) below; or
- (b) the balance remaining after deducting from that limit the aggregate of any other sums outstanding in respect of loans made under this section or section 14 by the society to that individual;
§ and if two or more loans under this section or this section and section 14 are made simultaneously by the society to the same individual they shall be treated for the purposes if this subsection as a single loan of an amount equal to the aggregate of the principal of each of those loans.
§ (6) The limit on loans to any one individual under this section is £10,000 or such other sum as the Commission may, with the consent of the Treasury, specify by order in a statutory instrument.
§ (7) Loans under this section constitute class 3 assets for the purposes of the requirements of this Part for the structure of commercial assets and accordingly the aggregate of the amounts outstanding in respect of—
- (a) the principal of loans under this section,
- (b) the interest on those loans, and
- (c) any other sums which borrowers are obliged to pay the society under the terms of those loans,
§ counts in accordance with section 18 towards the limits applicable to class 3 assets under that section.
§ (8) The power conferred by this section is not available to a building society which does not for the time being have a qualifying asset holding, but the cessation of its availability does not require the disposal of any property or rights.
§ (9) The power conferred by this section on a building society, if available to it, must in order to be exercisable, be adopted by the society.
§ (10) An instrument containing an order under subsection (6) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.
§
(11) In this section—
mobile home" has the same meaning as "caravan" in Part I of the Caravan Sites and Control of Development Act 1960;
prescribed", in relation to descriptions of dependants of borrowers, means such as are for the time being prescribed in an order under section 12(1) as respects class 1 advances; and
protected site" has the same meaning as in the Mobile Homes Act 1983.'.—[Mr. Ian Stewart.]
§ Brought up, read the First and Second time, and added to the Bill.