ADVOKS GLOBAL · KENYA
Building Societies Act
26. Power to make further advances
Edition: 2022-12-31 · In force
26. Power to make further advances
(1)For the purposes of facilitating repayment to a building society of an advance made or to be made by the society to a member upon the security of land, a society may make to the member, by way of addition to the advance, a further advance of the whole or part of such sum as may be necessary to enable payment to be made of a single premium payable in respect of a policy of life assurance upon the life of the member or the spouse or son or daughter of the member, being a policy which provides for payment, in the event of the death of the person upon whose life the policy is effected before the advance has been repaid, of a sum not exceeding a sum which is sufficient to defray the sums which are, at and after the time of the death, payable to the society in respect of the advance as increased by the additional advance made by the society under the power conferred by this subsection.(2)Where, in pursuance of the power conferred by subsection (1), a society has added a sum to an advance made by the society upon the security of land, the sum so added to the advance shall not be deemed to form part thereof for the purpose of determining whether the advance is beyond the power of the society by reason—(a)of the amount of the advance being excessive; or(b)of the amount of any excess advance included in the advance being greater than that which is authorized by this Act.(3)Where a society has made an advance to a member upon the security of land, and the advance is an advance to which subsection (7) of section 24 apply, then, if the society subsequently adds to the advance a further advance under the power conferred by this section, those provisions shall also apply in relation to that further advance; and, for the purpose of the application thereto of those provisions, the further advance shall be deemed to have been made at the time when the original advance was made.