CHAPTER 412 - BUILDING SOCIETIES ACT: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Building Societies Act (Designation of Trustee Status) Order

Building Societies Act (Authorised Banks) Order

Building Societies (Authorised Investments) Order

Building Societies (Holding of Liquid Funds) (Assets Prescription) Order

Building Societies (Limit of Repayments to Investors and Lenders) Order

Building Societies (Holding of Liquid Funds) (Assets Prescription) Order

Building Societies (Investment of Surplus Funds) (Authorisation) Order

Building Societies Regulations

BUILDING SOCIETIES ACT (DESIGNATION OF TRUSTEE STATUS) ORDER

[Section 87]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Designation of trustee status

      SCHEDULE

[Order by the Minister]

SI 149 of 1969.

1.   Title

This Order may be cited as the Building Societies Act (Designation of Trustee Status) Order.

2.   Designation of trustee status

The registered building societies named in the Schedule have been designated with effect from the dates shown in the Schedule, as building societies with whom a trustee may invest any trust funds in his hands, whether at the time in a state of investment or not, in deposits with and loans to a building society designated for that purpose by the Minister.

SCHEDULE

(Paragraph 2)

BUILDING SOCIETIES DESIGNATED WITH TRUSTEE STATUS

Name of Building Society

Registered Address

Effective date of Designation

First Permanent (1962) Building Society.

Permanent House, Cairo Road, P.O. Box 420, Lusaka.

2nd December,1968.

Security Building Society.

Century House, Edinburgh Square, P.O. Box 147, Lusaka.

2nd December, 1968.

Zambia Mutual Building Society.

Mutual House, St. David’s Road, P.O. Box 901, Ndola.

12th December, 1968.

BUILDING SOCIETIES ACT (AUTHORISED BANKS) ORDER

[Section 90]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Designation of authorised banks

      SCHEDULE

[Order by the Minister]

SI 2 of 1969,

SI 141 of 1971,

SI 122 of 1982,

SI 144 of 1982.

1.   Title

This Order may be cited as the Building Societies Act (Authorised Banks) Order.

2.   Designation of authorised banks

The Minister has designated the banks shown in the First and Second Schedules as the banks with which building societies are authorised to keep money.

SCHEDULE

[Paragraph 2]

REGISTERED ACCEPTING HOUSE

1. Merchant Bank (Zambia) Limited

2. Barclays Bank of Zambia Limited

3. Standard Chartered Bank Zambia Limited

4. Zambia National Commercial Bank Limited

5. Grindlays Bank International (Zambia) Limited

BUILDING SOCIETIES (AUTHORISED INVESTMENTS) ORDER

[Section 89]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Authorised investments

[Order by the Minister]

SI 33 of 1988.

1.   Title

This Order may be cited as the Building Societies (Authorised Investments) Order.

2.   Authorised investments

The Minister has authorised Zambia National Building Society to invest any part of its surplus funds in Zambia Housing Development Fund Limited.

BUILDING SOCIETIES (HOLDING OF LIQUID FUNDS) (ASSETS PRESCRIPTION) ORDER

[Section 93]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Prescription of assets in which liquid funds may be held

[Order by the Governor of the Bank of Zambia]

SI 211 of 1973.

1.   Title

This Order may be cited as the Building Societies (Holding of Liquid Funds) (Assets Prescription) Order.

2.   Prescription of assets in which liquid funds may be held

It is hereby prescribed, with the consent of the Minister, that liquid funds may be held by the Zambia National Building Society in the capital stock of the Development Bank of Zambia.

BUILDING SOCIETIES (LIMIT OF REPAYMENTS TO INVESTORS AND LENDERS) ORDER

[Section 80]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Limit of repayments

      SCHEDULE

[Order by the Minister]

SI 134 of 1972,

SI 58 of 1979.

1.   Title

This Order may be cited as the Building Societies (Limit of Repayments to Investors and Lenders) Order.

2.   Limit of repayments

The maximum amount which the building society named in the first column of the Schedule hereto with the address specified in the second column thereof may repay to any single investor or lender in any one month of money invested with or borrowed by the said society whether such money are in the form of shares, deposits or loans (but not bank overdrafts), or in a combination of these, shall not exceed the amount specified in the third column of the said Schedule.

SCHEDULE

Name of Building Society

Registered Address

Limit of Repayments

Zambia National Building Society

Permanent House
Cairo Road
P.O. Box 420
Lusaka

K300,000

[Am by SI 58 of 1979.]

BUILDING SOCIETIES (HOLDING OF LIQUID FUNDS) (ASSETS PRESCRIPTION) ORDER

[Section 93]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Prescription of assets in which liquid funds may be held

[Order by the Governor of the Bank of Zambia]

SI 44 of 1974.

1.   Title

This Order may be cited as the Building Societies (Holding of Liquid Funds) (Assets Prescription) Order.

2.   Prescription of assets in which liquid funds may be held

It is hereby prescribed, with the consent of the Minister, that liquid funds may be held by the Zambia National Building Society in the capital stock or shares of the Development Bank of Zambia.

BUILDING SOCIETIES (INVESTMENT OF SURPLUS FUNDS) (AUTHORISATION) ORDER

[Section 89]

Arrangement of Paragraphs

   Paragraph

   1.   Title

   2.   Authorised investments

      SCHEDULE

SI 144 of 1974,

SI 60 of 1975,

SI 161 of 1975,

SI 107 of 1979,

SI 167 of 1979.

1.   Title

This Order may be cited as the Building Societies (Investment of Surplus Funds) (Authorisation) Order.

2.   Authorised investments

The Zambia National Building Society is hereby authorised to invest any part of its surplus funds in acquiring the real property specified in the Schedule hereto.

SCHEDULE

[Paragraph 2]

1.   Plots Nos 3 and 3A, Cairo Road, Lusaka; Plots Nos 20, 21, 22 and R/E of Plot No. 23, Cha Cha Cha Road, Lusaka.

2.   Construction of houses in:

   Chipata

   Kasama

   Mansa

   Mongu

   Solwezi

BUILDING SOCIETIES REGULATIONS

[Section 127]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangement of Regulations

   Regulation

   1.   Title

   2.   Interpretation

   3.   Notice of sale of mortgaged property

   4.   Prescribed forms

   5.   Annual return and annexure to annual return

   6.   Annual accounts

   7.   Notes to annual accounts and return

   8.   Prescribed fees

   9.   Power to dispense with certain fees

   10.   Extension of time for compliance

      FIRST SCHEDULE

      SECOND SCHEDULE

      THIRD SCHEDULE

[Regulations by the Minister]

SI 331 of 1969.

1.   Title

These Regulations may be cited as the Building Societies Regulations.

2.   Interpretation

In these Regulations, unless the context otherwise requires—

“directors’ expenses”, where it occurs in the income and expenditure and appropriation account, includes any sums paid to or for a director in respect of expenses and the amount or estimated money value, as the case may be, of any other benefits received by the director and the contributions paid in respect of him, as a director, under any pension scheme;

“provision” means any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability the amount of which cannot be determined with substantial accuracy;

“reserve” does not include any provision, but includes any amount written off or retained as a provision which, in the opinion of the directors, is in excess of that which is reasonably necessary for the purpose;

“Zambian citizen” means—

      (a)   in relation to an individual, an individual who is a citizen of Zambia;

      (b)   in relation to an unincorporated association of persons, an association which is composed exclusively of persons who are citizens of Zambia;

      (c)   in relation to a body corporate, a body corporate which is incorporated under the laws of Zambia and—

      (i)   is certified under the hand of the Minister to be controlled by the State; or

      (ii)   whose membership is composed exclusively of persons who are citizens of Zambia, and all of whose directors are citizens of Zambia, and which is not controlled, by any means, directly or indirectly, outside Zambia or by persons who are not citizens of Zambia or who are associated in the capital structure thereof with persons who are not citizens of Zambia;

“Zambian controlled”, in relation to any association of persons whether or not incorporated, means an association in which Zambian citizens are associated with other persons therein, if the Zambian citizens can override such other persons;

“non-Zambian” means not a Zambian citizen and not Zambian controlled.

3.   Notice of sale of mortgaged property

The notice required to be sent by a building society to a mortgagor under sub-section (3) of section 76 of the Act shall set out the following particulars—

      (a)   the date of the mortgage;

      (b)   the address or description of the property sold;

      (c)   the name and address of the purchaser;

      (d)   the sum for which the property was sold;

      (e)   whether the sale was by public auction or private treaty;

      (f)   the date of completion of the sale.

4.   Prescribed forms

Except as provided in these Regulations, every certificate issued under the Act and every application, notice and other document made or sent to the Registrar in pursuance of the Act such as is referred to in the headings of the forms contained in the First Schedule shall contain the particulars set out in, and be in the form of, the appropriate form contained in the said Schedule, which form may be varied as the circumstances require.

5.   Annual return and annexure to annual return

In the annual return (Form BS.4), in the annexure to the annual return (Form BS.4/A) and in every statement or report annexed thereto—

      (a)   every form, schedule and other statement shall be typewritten or printed on paper of foolscap size (approximately 33 centimeters by 20 centimeters);

      (b)   where appropriate, the word “Nil” shall be inserted against any heading or against the whole of any section;

      (c)   the auditors shall not be required to deal with the matters—

      (i)   on page No. 1 of the annual return;

      (ii)   on schedules No. 4 (b) to 7 inclusive of the annual return.

6.   Annual accounts

   (1) For the purposes of sub-section (2) of section 34 of the Act, the income and expenditure and appropriation account and balance sheet of a building society shall contain the particulars and be in the form set out in the Second Schedule, except that any heading contained therein may be omitted if the entries in respect of such heading would be “Nil” and provided that the said account and balance sheet may contain such other particulars as the building society thinks fit.

   (2) There shall be included against every heading—

      (a)   in the income and expenditure and appropriation account, the corresponding amount for the immediately preceding financial year;

      (b)   in the balance sheet, the corresponding amount at the end of the immediately preceding financial year.

7.   Notes to annual accounts and return

   (1) There shall, if not otherwise shown, be stated by way of notes to the income and expenditure and appropriation account, both in the annual accounts and in the annual return, every material respect in which any items shown therein are affected—

      (a)   by transactions of an exceptional or non-recurrent nature; or

      (b)   by any change in the basis of accounting.

      (2) There shall, if not otherwise shown, be stated by way of notes to the balance sheet, both in the annual accounts and in the annual return, details—

      (a)   of the market value of each class of investment;

      (b)   of any charges on the building society’s assets and of any money owing by the society in respect of deposits, loans and overdrafts which are wholly or partially secured;

      (c)   of any contingent liability not provided for, if material;

      (d)   of any contracts for capital expenditure not provided for, if material;

      (e)   of any increases or decreases in the reserves or provisions, giving the sources from which the increases have been derived and how the amounts of any decreases have been applied;

      (f)   of commitments for advances not yet made.

8.   Prescribed fees

The fees set out in the Third Schedule shall be payable in advance to the Registrar.

9.   Power to dispense with certain fees

The Registrar may dispense with the fee for inspection and copies of documents in cases where he may consider it in the public interest so to do and may, if he thinks fit, reduce or dispense with the fee for an award in a dispute.

10.   Extension of time for compliance

The Registrar may, on the application of any building society, grant to the society an extension of time for compliance by it with these Regulations or with any specified provisions thereof, if he is satisfied that it would be a hardship to the society to comply therewith.

FIRST SCHEDULE

[Regulation 4]

PRESCRIBED FORMS

Form

Title

Building Societies Act Section

BS.1

Application for a certificate of registration on the establishment of a building society ...............................................................................

3

BS.2

Certificate of registration of a building society........................................

3 and 6

BS.3

Notice of change of directors, manager or secretary ..............................

28

BS.4

Annual return ......................................................................................

51

BS.4/A

Annexure to annual return (properties sold, mortgages transferred) ..........

52

BS.5

Submission of a dispute ......................................................................

56

BS.6

Application for approval of a special advance .........................................

62

BS.7

Certificate of valuation ..........................................................................

71

BS.8

Notice to prospective borrower where security is to be taken from third party ...........................................................................................

73

BS.9

Monthly return to Bank of Zambia ........................................................

93

BS.10

Notice of change of name ...................................................................

95

BS.11

Certificate of registration of change of name ..........................................

95

BS.12

Notice of change of address ................................................................

96

BS.13

Certificate of registration of change of address ......................................

96

BS.14

Application to register an alteration of rules (being a substitution of an entire set of rules) .........................................................................

97

BS.14/A

Application to register an alteration of rules (not being a substitution of an entire set of rules) ........................................................................

97

BS.14/B

Statutory declaration to accompany application to register an alteration of rules .........................................................................................

97

BS.15

Certificate of registration of alteration of rules .........................................

97

BS.16

Notice of union of societies .................................................................

98

BS.17

Notice of transfer of engagements .......................................................

99

BS.18

Application for confirmation of union or transfer of engagements ..............

100

BS.19

Notice of application for confirmation of union or transfer of engagements ...

100

BS.20

Instrument of dissolution ......................................................................

111

BS.21

Certificate of registration of instrument of dissolution ...............................

111

BS.22

Application for approval to incur expenditure on real assets exceeding K100,000 in respect of any single transaction ...................................

117

BS.23

Application for inspection of a building society’s documents ....................

133

FORM BS.1

BUILDING SOCIETIES ACT

[Section 3]

APPLICATION FOR A CERTIFICATE OF REGISTRATION ON THE ESTABLISHMENT OF A BUILDING SOCIETY

To: THE REGISTRAR OF BUILDING SOCIETIES

1. We, the undersigned, whose names, addresses and subscription shares are—

Name

Address

Subscription Shares

K

1.

2.

3.

4.

5.

Intended Secretary hereby apply for a Certificate of Registration to be granted in respect of a society intended to be established under the Building Societies Act to be called. ...................................................................................................................... Building Society.

2. Matters required to be provided for in the Rules Number of Rule Pursuant to sections 3 (1) (a) and 3 (1) (b) of the said Act, we herewith transmit two printed copies of the rules agreed upon by us for the government of the society, each copy of which is signed by us and by the intended secretary.

The matters required to be provided for in the rules of a building society by section 11 of the said Act are provided for in the rules transmitted herewith as follows—

Matters required to be for
in the Rules

Number
of Rule

   (a)   the name of the society and the address of its chief office or place of meeting;

   (b)   the manner in which the stock or funds of the society is or are to be raised;

   (c)   the manner in which a person may become a member of the society and the manner in which he may cease to be a member;

   (d)   the purposes to which the funds of the society are to be applied;

   (e)   provision that the society shall not, except with the approval of the Minister, make advances on the security of freehold or leasehold estate or in respect of any development, lands or buildings, situated outside the territorial limits of Zambia;

   (f)   the classes of shares to be issued and the preferential and other rights and conditions attached to each class of shares;

   (g)   the terms and conditions on which deposits are to be accepted and repaid;

   (h)   provision that the society reserves the right to make all repayments, whether of shares, deposits, loans or otherwise, in Zambian currency;

   (i)   the manner in which advances are to be made and repaid and the conditions on which a borrower can redeem the amount due from him before the end of the period for which the advance was made;

   (j)   the manner in which losses are to be ascertained and provided for;

   (k)   whether the society intends to borrow money and if so, within what limits, not exceeding those prescribed by the Building Societies Act;

   (l)   the manner of appointing, remunerating and removing the board of directors and other officers, their powers and duties, and the manner of remunerating auditors;

   (m)   the manner of calling and holding meetings, the giving of notice thereof, form of notice, quorum, voting rights, right to requisition meetings, procedure to be observed at meetings, the right to demand a poll, and the manner in which a poll is to be taken;

   (n)   the manner of settling disputes, subject to the provisions of the Building Societies Act;

   (o)   provision for an annual or more frequent audit and the inspection by the auditors of the titles, mortgage deeds and other securities held by the society;

   (p)   provision for the custody of the titles, mortgage deeds and other securities belonging to or held by the society;

   (q)   provision for the device, custody and use of the society’s common seal;

   (r)   the fines and forfeitures, if any, to be imposed on members of the society;

   (s)   the manner in which the society may be dissolved.

3. Pursuant to section 3 (1) (c) of the said Act, we hereby declare that we have subscribed for the shares enumerated in paragraph 1 above in the amounts severally shown, and that we have paid fully in cash the said sums into an account in the name of ................................................ Building Society (information) with the.............................................................................. Bank. On receipt of the Certificate of Registration, the said shares will be allotted to us and the conditions, as stated in section19 (1) of the said Act, shall attach to the issue of those shares.

4. Pursuant to section 3 (1) (d) of the said Act, we hereby declare that the total sum subscribed as fixed- term investments with the Society for a period of not less than five years by way of

(a)

Shares (including the amounts shown in paragraph 1)

(K

)

(b)

Deposits

(K

)

(c)

Negotiated loans

(K

)

amounts to K ................................................................................................................... ( kwacha), and that these amounts, which are in addition to the deposit required to be made to the Bank of Zambia, have been paid fully in cash into an account in the name of .......................................................................................... Building Society (information) with the ................................................... Bank.

On receipt of the Certificate of Registration, the said shares, deposits and negotiated loans will be allotted in full. In support we enclose a certificate from the ................................................................................................................................................. Bank for the amount standing to the credit of .......................................................................................... Building Society (information) as well as other documentary evidence justifying the difference.

5. Pursuant to section 3 (1) (e) of the said Act, we enclose a certificate from the Governor of the Bank of Zambia stating that we have deposited with the Bank of Zambia cash and securities acceptable to him to a total value of K100,000 and that such deposit shall on registration of the Society be subject to the conditions set out in section 5 of the said Act.

6. Pursuant to section 3 (2) of the said Act, we enclose cash/cheque amounting to K.................................in respect of the prescribed fee.

Signatures:

1. .....................................................

2. ......................................................

3. ......................................................

4. .......................................................

5. ........................................................

Intended Secretary

Address for reply.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
Date ...............................................................................................................

FORM BS.2

BUILDING SOCIETIES ACT

[Sections 3 and 6]

CERTIFICATE OF REGISTRATION OF A BUILDING SOCIETY

Registration No.:........................

This is to certify that ..................................................... Building Society, whose Chief Office is situated at ........................................... has this .......................................................... day of.......................................................,20...... been registered under the Building Societies Act.

..............................................................................
Registrar of Building Societies

FORM BS.3

BUILDING SOCIETIES ACT

(Section 28)

NOTICE OF CHANGE OF DIRECTORS, MANAGER OR SECRETARY

............................................ Building Society Registration No. .....................................................................

To: THE REGISTRAR OF BUILDING SOCIETIES

Notice is hereby given of—

      (a)   the appointment to office of the undermentioned persons—

Name
(in full)

Address

Office to
which appointed

Date of
appointment



      (b)   the relinquishment of office of the undermentioned persons—

Name
(in full)

Address

Office
relinquished

Date of
relinquishment

..............................................................................

Date................................................

Secretary

FORM BS.4

BUILDING SOCIETIES ACT

[Section 51]

ANNUAL RETURN FOR THE YEAR ENDED..............

(To be submitted to the Registrar in duplicate within 28 days of the Annual General Meeting)

Name of Society: .................................................................................................................................

Registered Office: ...............................................................................................................................

Date of Incorporation: ..........................................................................................................................

Date on which the Annual General Meeting was held: ........................................................................

Number of branch offices staffed by employees of the Society: .........................................................

DIRECTORS, MANAGER AND SECRETARY

Name

Address

Nationality

Directors

{

Manager

Secretary

SHARES ACCOUNT No. 1



Due to shareholders at beginning of year

Add :

Subscriptions
Interest, dividend and bonus
Other credits -
-
-

K

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