HL Deb 22 October 1985 vol 467 cc1004-5

46 After Clause 59, insert the following new clause:

("Consequential provisions relating to building societies.

.—(1) A building society may, at any time during the period of three years beginning with the commencement of this section, alter the rules of the society by resolution of the board of directors so as to provide for conveyancing services to be carried out on the society's behalf, in relation to estates or interests in land in England and Wales, by all or any of the following, namely—

  1. (a) a recognised body within the meaning of section (Incorporated practices) of this Act;
  2. (b) a licensed conveyancer, and
  3. (c) a recognised body within the meaning of Part II of this Act.

(2) Where any alteration of the rules of a building society is effected under subsection (1), the society shall send to the central office two copies of the alteration signed by three members and the secretary and a statutory declaration by an officer of the society that the alteration was effected by resolution of the board of directors.

(3) Where copies are sent to the central office in accordance with subsection (2), and the central office find that the alteration is in conformity with the 1962 Act and this section, they shall return one of the copies to the secretary or other officer of the society with a certificate of registration, and shall retain and register the other copy.

(4) If a building society fails to comply with subsection (2), the society, and every officer of the society who is in default, shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale.

(5) The power to alter its rules under subsection (1) shall cease to be exercisable by a building society if, during the period of three years mentioned in that subsection, a special resolution is passed altering (in any respect) the rules of the society in pursuance of section 17(1) of the 1962 Act (alteration of rules).

(6) Section 34(4) of the 1962 Act (restriction on commissions for introduction of mortgage business) shall apply to a body or person falling within any of paragraphs (a) to (c) of subsection (1) of this section as it applies to a solicitor.

(7) This section and the 1962 Act shall be construed as if this section were contained in that Act, and in this section— the 1962 Act" means the Building Societies Act 1962; conveyancing services" shall be construed in accordance with section 7(3) of this Act; licensed conveyancer" has the meaning given by section 7(2) of this Act; the standard scale" has the meaning given by section 75 of the Criminal Justice Act 1982.").

The Lord Chancellor

My Lords, perhaps I may take, with Amendment No. 46, Amendments Nos. 50 to 52.

50 Clause 61, page 44, line 32, at end insert—

("(bb) section (Consequential provisions relating to building societies);").

51 page 44, line 37, leave out second ("and").

52 page 44, line 39, at end insert ("; and

(c) section (Consequential provisions relating to building societies) does not extend to Northern Ireland.").

These amendments enable building societies to alter their rules where necessary by a simplified procedure so as to permit licensed conveyancers to act for building societies in connection with the mortgage. My noble friend Lork Selkirk raised this matter on Report. I undertook then to give it further consideration. The amendments were accordingly made in another place. I therefore beg to move that this House do agree with the Commons in the said amendment.

Moved, that this House do agree with the Commons in their Amendment No. 46—(The Lord Chancellor.).

On Question, Motion agreed to.