(1)A registered society may, unless its registered rules direct otherwise, hold, purchase or take on lease in its own name any land and may sell, exchange, mortgage or lease any such land and erect, alter or pull down buildings on it; and—
(a)no purchaser, assignee, mortgagee or tenant shall be bound to inquire as to the authority for any such dealing with the land by the society; and
(b)the receipt of the society shall be a discharge for all moneys arising from or in connection with any such dealing.
(2)In the application of the foregoing subsection to Scotland—
(a)for the word “exchange” there shall be substituted the word “excamb”;
(b)for the word “mortgage” there shall be substituted the words “grant a heritable security over”;
(c)for the word “mortgagee” there shall be substituted the words “creditor in a heritable security”.