Jersey Law 5/1994
BUILDING LOANS
(AMENDMENT No. 12) (JERSEY) LAW 1994
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A LAW to amend further the Building Loans (Jersey) Law 1950, sanctioned
by Order of Her Majesty in Council of the
15th day of MARCH 1994
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(Registered on the 22nd day of April 1994)
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STATES OF JERSEY
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The 12th day of October 1993
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THE
STATES, subject to
the sanction of Her Most Excellent Majesty in Council, have adopted the
following Law –
ARTICLE 1
In the long title
to the Building Loans (Jersey) Law 1950, as amended (hereinafter referred to as
“the principal Law”), after the word “acquire” there
shall be inserted the words “dwelling-houses and shares in companies
which own dwellings and to”.
ARTICLE 2
In Article 1 of
the principal Law –
(a) after the definition of
“the Committee” there shall be inserted the following definitions
–
“
‘company’ means a company incorporated under the law of the Island;
‘company-owned
dwelling’ means a building or a self contained part of a building used or
to be used wholly or principally for human habitation and any outhouses,
appurtenances and any other rights and interests belonging thereto or usually
enjoyed therewith, which is in the ownership of a company;”; and
(b) after the definition of
“loan” there shall be inserted the following definitions –
“
‘security agreement’ and ‘security interest’ have the
same meanings, respectively, as in the Security Interests (Jersey) Law 1983, as amended.”.
ARTICLE 3
In Article 3 of
the principal Law –
(a) for the full stop at
the end of sub-paragraph (f) there shall be substituted a semi-colon; and
(b) after sub-paragraph (f)
there shall be inserted the following sub-paragraph –
“(g) acquiring shares
in a company the ownership of which shares confers an exclusive right to occupy
a company-owned dwelling.”.
ARTICLE 4
In paragraph (1)
of Article 5 of the principal Law4 for the word “Every”
there shall be substituted the words “Except as provided by Article 5A of
this Law, every”.
ARTICLE 5
After Article 5
of the principal Law there shall be inserted the following Article –
“ARTICLE 5A
Security for loans made under sub-paragraph (g) of Article 3 of
this Law and interest thereon
(1) Every
loan made for the purpose specified in sub-paragraph (g) of Article 3 of this
Law shall be secured by a security interest in the shares in relation to which
the loan is made in such form as the States may by Regulations prescribe.
(2) The
provisions of Article 5 of this Law in relation to the rate of interest on a
loan shall apply mutatis mutandis to
a loan made for the purpose specified in sub-paragraph (g) of Article 3 of this
Law.”.
ARTICLE 6
Article 7 of the
principal Law shall be renumbered as paragraph
(1) of that Article and –
(a) in that paragraph for
the word “Save” there shall be substituted the words “Subject
to paragraph (2) of this Article and save”;
(b) after that paragraph
there shall be inserted the following paragraphs –
“(2) No loan shall be
made for the purpose specified in sub-paragraph (g) of Article 3 of this Law
where the shares in relation to which the loan is to be made are not or will
not be in the sole ownership of the person to whom the loan is to be made or
where the shares are subject to or charged with any security or other interest.
(3) Nothing
in paragraph (2) of this Article shall prevent the securing of the loan by
vesting the shares in relation to which the loan is made in the
Committee.”.
ARTICLE 7
In Article 8 of
the principal Law –
(a) for the full stop at
the end of sub-paragraph (d) there shall be substituted a comma; and
(b) after sub-paragraph (d)
there shall be inserted the following paragraph –
“(e) where the loan is required for the
purpose specified in sub-paragraph (g) of that Article, the amount which, in
the opinion of the Committee, is the value of the company-owned dwelling
concerned.”.
ARTICLE 8
(1) In
the heading to Article 9 of the principal Law after the word “HOUSE”
there shall be inserted the words “OR DWELLING”.
(2) In
Article 9 of the principal Law7 there shall be inserted –
(a) after the words
“sub-paragraph (a)” the words “or sub-paragraph (g)”;
and
(b) before the words
“to be acquired” the words “or company-owned dwelling, as the
case may be,”.
ARTICLE 9
(1) For
Article 11 of the principal Law there shall be substituted the
following Articles –
“ARTICLE 11
Insurance of property
(1) This
Article applies to loans made for any of the purposes of sub-paragraphs (a) to
(f) of Article 3 of this Law which are secured on a property other than a lot.
(2) Subject
to paragraph (3) of this Article, in the case of a loan to which this Article
applies which was made before the relevant date, until such time as the
principal of the loan together with the interest thereon has been repaid, the
property on which the loan is secured shall be kept insured against fire by the
Committee in the name of the States, as holders of the hypothec, and the name
of owner, and the premiums payable in respect of the insurance shall be
refunded by the owner on demand therefor being made by or on behalf of the
Committee.
(3) In
the case of a loan to which this Article applies which was made before the
relevant date, the owner of the property on which the loan is secured may agree
with the Committee that he will insure the property on which the loan is
secured, and in the event of such agreement, it shall be the responsibility of
the owner, with effect from such date as may have been agreed and until the
principal of the loan together with the interest thereon has been repaid, to keep
the property insured against fire in the name of the States as holders of the
hypothec and in his own name.
(4) In
the case of a loan to which this Article applies which is made after the
relevant date, the owner of the property on which the loan is secured shall,
until such time as the principal of the loan together with the interest thereon
has been repaid, keep the property insured against fire in the name of the
States as holders of the hypothec, and in his own name.
(5) In
this Article –
‘lot’
means a ‘lot’ within the meaning of Article 1 of the ‘Loi
(1991) sur la copropriété des immeubles bâtis’; and
‘relevant
date’ means the date on which the Building Loans (Amendment No. 12)
(Jersey) Law 1994 comes into force.
ARTICLE 11A
Insurance of lots
(1) This
Article applies to a loan which is secured on a lot.
(2) In
the case of a loan to which this Article applies, until such time as the
principal of the loan together with the interest thereon has been repaid, the
property comprising the lot shall be
kept insured against fire by the association
des copropriétaires in relation to that property and the interest of
the States, as holders of the hypothec, shall be endorsed on the policy.
(3) In
this Article –
‘Lot’ has the same meaning as in
Article 11 of this Law; and
‘association des copropriétaires’
means an association constituted
under Article 5 of the ‘Loi (1991) sur la copropriété des
immeubles bâtis’.
ARTICL E 11B
Insurance of company-owned dwellings
(1) This
Article applies to loans made for the purpose of sub-paragraph (g) of Article 3
of this Law.
(2) In
the case of a loan to which this Article applies, until such time as the
principal of the loan, together with the interest thereon, has been repaid, the
company-owned dwelling which the person to whom the loan was made is entitled
to occupy shall be insured against fire by the company which owns the dwelling
and the interest of the States, as holders of the security interest in the
shares in relation to which the loan was made, shall be endorsed on the
policy.”.
(2) Sub-paragraph
(b) of paragraph (7) of Article 16 of the “Loi (1991) sur la
copropriété des immeubles bâtis” shall be deleted.
ARTICLE 10
In Article 12 of
the principal Law –
(a) in paragraph (1) for
the word “Until” there shall be substituted the words “Except
where a loan is made for the purpose specified in sub-paragraph (g) of Article
3 of this Law, until”; and
(b) after paragraph (2)
there shall be inserted the following paragraph –
“(3) Where a loan is
made for the purpose specified in sub-paragraph (g) of Article 3 of this Law,
until such time as the principal of the loan, together with the interest
thereon has been repaid, the following conditions, which shall be included in
the security agreement establishing the security interest on which the loan is
secured, shall be observed with respect to the shares on which the loan is
secured –
(a) the shares, if title to
them is not vested in the Committee, shall not be sold or otherwise disposed of
inter vivos except with the consent of
the Committee which shall not grant such consent where the person to whom the
shares would be transferred is, by virtue of any Regulations made under Article
15 of this Law, a person to whom a loan may not be made;
(b) the owner of the
shares, if title to them is not vested in the Committee, shall not, by act or
omission on his part, except with the consent in writing of the Committee, and
subject to any conditions attached to such consent, suffer any security
interest or other interest to become charged on the shares other than that held
by the Committee;
(c) every sum due in
respect of principal and interest of the loan and the insurance of the dwelling
shall be punctually paid;
(d) the owner of the shares
shall both occupy and reside in the dwelling and shall not part with possession
of the same except with the consent in writing of the Committee;
(e) all reasonable steps
shall be taken to secure the maintenance of the dwelling and any common parts
of the building in which the dwelling is situated to the extent to which the
owner of the shares is responsible therefor;
(f) the dwelling
shall not be used for any purposes other than those of a private dwelling
except with the consent in writing of the Committee and then only for such
further purposes and to such extent as may be specified in that consent;
(g) the Committee and its
agents or servants shall be permitted to enter the dwelling at all reasonable
times for the purpose of ascertaining whether the foregoing conditions and any
other conditions of the security agreement are being complied with;
(h) if and to the extent
that ownership of the shares acquired with or with the aid of a loan confers on
the owner of those shares any rights including rights to vote at any meeting of
the company those rights shall not be exercised without the prior consent in
writing of the Committee.”.
ARTICLE 11
After paragraph
(7) of Article 13 of the principal Law there shall be inserted the
following paragraph –
“(8) In
the event of a breach of any of the conditions mentioned in paragraph (3) of
Article 12 of this Law or any other provision of the security agreement which
is by virtue thereof made an event of default, the Committee shall without
prejudice to any other rights of the Committee under the security agreement, have
the power of sale given by Article 8 of the Security Interests (Jersey) Law
1983, as amended, and may exercise that
power in accordance with the provisions of that Article.”.
ARTICLE 12
In Article 15 of
the principal Law after the words “to secure a
loan” there shall be inserted the words “or the costs of creating a
security interest to secure a loan”.
ARTICLE 13
This Law may be
cited as the Building Loans (Amendment No. 12) (Jersey) Law 1994 and shall come
into force on such day as the States may by Act appoint.
G.H.C. COPPOCK
Greffier of the
States.