Part II Incorporated Friendly Societies
Powers of incorporated friendly societies
14 Investment of funds.
1
An incorporated friendly society may invest its funds—
a
in the purchase of land, or in the erection of offices or other buildings thereon;
b
upon any other security expressly directed by the rules of the society, other than personal security (but without prejudice to any provision of this Act relating to loans); or
c
in any other investment of a kind which trustees are for the time being by law authorised to make.
2
An incorporated friendly society which falls within subsection (3) F1. . . below may also invest the funds of the society in any other manner authorised by its constitution.
3
An incorporated friendly society falls within this subsection if—
a
it is a society to which F2rules in respect of margins of solvency, made by the Authority under section 138 of the Financial Services and Markets Act 2000, apply and
b
it maintains the margin of solvency which it is required to maintain by virtue of F3such rules.
F44
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5
6
7
The powers of investment of a society on which a notice is served under subsection (6) above shall accordingly, until the notice is revoked under subsection (10) below, be limited to investment falling within subsection (1) above.
8
A notice under subsection (6) above may direct a society to dispose of an investment which it could not have acquired except under subsection (2) above.
9
Subject to subsection (8) above, a society may retain any investment which it could only have acquired under subsection (2) above.
10
F611
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