Friendly Societies Act 1974

F180 Disputes arising out of loans of surplus funds to societies of different description.U.K.

(1)[F2Subject to subsection (1A) below,] where a registered society or branch (in this section referred to as “the lender”) has made or agreed to make advances under section 50 above to another society or branch (in this section referred to as “the borrower”) and the lender is by reason thereof empowered by the rules of the borrower to take part in the government or control of the borrower, then, subject to subsection (2) below, sections 76 to 79 above shall apply in relation to the determination of any dispute between the lender and the borrower, being a dispute relating to any such advance or agreement or to the rights of the lender or an officer thereof under the rules of the borrower, as if the borrower were a branch of the lender.

[F3(1A)Subsection (1) above does not apply in any case where the lender is a registered friendly society or a branch of such a society.]

(2)Where sections 76 to 79 above apply by virtue of subsection (1) above,—

(a)references in those sections to the rules of the society or branch are references to the rules of the borrower; and

(b)section 76(1) above shall not prevent the bringing of legal proceedings for the determination of any such dispute as is referred to in subsection (1) above unless, before the commencement of the proceedings, application has been made for a reference under the rules of the borrower, and any such proceedings may be brought [F4in England and Wales in the county court or, in Northern Ireland,] in a county court or, in Scotland, before the sheriff, whether or not the court would apart from this provision have jurisdiction to entertain them; and

(c)any application under section 79(1) above (other than an application made in Scotland) must be made to the county court and not to a magistrates’ court.

Textual Amendments

F1S. 80: by Friendly Societies Act 1992 (c. 40), s. 126(2), Sch. 22 Pt. I (with ss. 7(5) and 93(4)) it is provided that in s. 80(1) paragraph (c) and the word "and" immediately preceding it are repealed (13.1.1993); S.I. 1993/16, art. 2, Sch. 2, appendix.

F2Words in s. 80(1) inserted (13.1.1993) by Friendly Societies Act 1992 (c. 40), s. 95, Sch. 16 para. 28(a) (with ss. 7(5) and 93(4)); S.I. 1993/16, art. 2, Sch. 2.

F3S. 80(1A) inserted (13.1.1993) by Friendly Societies Act 1992 (c. 40), s. 95, Sch. 16 para. 28(b) (with ss. 7(5) and 93(4)); S.I. 1993/16, art. 2, Sch. 2.

F4Words in s. 80(2)(b) inserted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 84(2); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11)