CHAP. XXX. The powers of friendly societies to lend money on mortgage The Friendly is now governed by the provisions of the Act of 1875. Societies Act, 1875. Vesting of property of society. Devolution Admittance to copyholds. Power of trustees to invest on mortgage. Loans to members. Loans may be made out of separate loan fund. All property of a society is vested in its trustees for the time being; and the property of a branch is vested in the trustees of that branch, or in the trustees of the society if the rules of the society so provide (r). Upon the death, resignation, or removal of a trustee, the property vests in the surviving trustees either solely or together with any surviving or continuing trustees, and, until appointment of succeeding trustees, in such surviving or continuing trustees only, or in the executors or administrators of the last surviving or continuing trustee as personal estate (whether the same be real or personal) without conveyance and assignment, except as regards stock and securities in the public funds (s). In legal proceedings the property is to be stated to be the property of the trustees by name as trustees for the society or branch, without further description (†). Where a society is entitled in equity to any copyholds or customary lands absolutely or by way of mortgage, the lord is from time to time to admit the trustees (not to exceed three) of the society as tenants on payment of the fines and dues payable on admission of a single tenant (u). The trustees, with the consent of the committee of management or of a majority of the members of a society present and entitled to vote at a general meeting, may from time to time invest the funds of such society or any part thereof to any amount (among other investments) upon any security expressly directed by the rules of the society, not being personal security, except as provided by the Act with respect to loans (x). With respect to loans it is enacted (y) that : "(1.) Not more than one half of the amount of an assurance on the life of a member of at least one full year's standing may be advanced to him, on the written security of himself and two satisfactory sureties for repayment; and the amount advanced, with all interest thereon, may be deducted from the sum assured, without prejudice, in the meantime, to the operation of such security. (2.) A society may, out of any separate loan fund to be formed by contributions or deposits of its members, make loans to its members on their personal security, with or without sureties, as may be provided by the rules, subject to the following restrictions : (a) No loan can at any time be made out of moneys contributed for the other purposes of the society; (b) No member shall be capable of holding any interest in the loan fund exceeding two hundred pounds; (c) No society shall make any loan to a member on personal security beyond the amount fixed by the rules, or shall make any loan which, together with any moneys for the time being owing by a member to the society, shall exceed fifty pounds; (d) No society shall hold at any one time on deposit from its members any moneys beyond the amount fixed by the rules, which shall not exceed two thirds of the total sums for the time being owing to the society by the members who have borrowed from the loan fund." CHAP. XXX. unauthorized Loans by trustees of a friendly society on personal security Loans on not authorized by the Act, though amounting to a breach of security. trust on the part of the trustees, so as to render them liable for any loss, are not illegal so as to preclude the trustees from recovering the money lent (≈). Upon the death, bankruptcy, or insolvency (including liquidation by arrangement in England, cessio bonorum in Scotland, and petition for arrangement in Ireland) of any officer of a friendly society having in his possession by virtue of his office any money or property belonging to the society, or if any execution, attachment or other process be issued, or action or diligence raised against such officer, or against his property, his heirs, executors, or administrators, or trustee in bankruptcy, or insolvency, including an assignee in Ireland, and a judicial factor in Scotland, or the sheriff or other person executing such process, or the party using such action or diligence respectively, shall upon demand in writing of the trustees of the society or any two of them, or any person authorized by the society or by the committee of management of the same, to make such demand, pay such money, and deliver over such property to the trustees of the society in preference to any other debts or claims against the estate of such officer (a). The institution of a suit is sufficient demand in writing, and the neglect of the trustees of the society to audit the accounts of the defaulting officer will not deprive the society of the statutory right of priority (b). (z) Re Coltman, W. N. (1881) 136, C. A. (a) 38 & 39 Vict. c. 60, s. 15 (7). See Re Atkins, W. N. (1882) 38. (b) Absolom v. Gething, 32 Beav. 322, under the corresponding provisions of the repealed stat. 18 & 19 Vict. c. 63, 8. 23. CHAP. XXX. Settlement of disputes. Discharge of mortgages by receipt indorsed or annexed. Registration, An incorporated banking company cannot be an "officer" of a friendly society within the meaning of the above enactment, and an order cannot, accordingly, be made thereunder for payment to the trustees of the society of moneys in the possession of such a company as treasurer of the society (c). Disputes between a member, or a person claiming through a member, and the society or its officers, are to be settled conclusively in manner directed by the rules of the society (d). ii.—Reconveyance.-A receipt under the hands of the trustees, countersigned by the secretary in the form in the third schedule to the Act, or in any other form specified in the society's rules, for all moneys secured to the society by any mortgage or other assurance, such receipt being indorsed upon or annexed to the mortgage or assurance, vacates the same, and vests the property in the person entitled to the equity of redemption without reconveyance or re-surrender (e). If the mortgage or assurance have been registered under any &c. of receipt. Act for the registration or record of deeds or titles, or is of copyhold or customary land and entered on any court rolls, the registrar under such Act, or steward of the manor, or keeper of the register shall, on production of such receipt, verified by oath of any person, enter satisfaction on the register or on the court rolls, respectively, of such mortgage, or of the charge made by such assurance, and shall grant a certificate either upon such mortgage or assurance, or separately, to the like effect, which certificate shall be received in evidence in all Courts and proceedings without further proof (ƒ). (c) Re West of England and South Wales District Bank, Exp. Swansea Friendly Soc., 11 Ch. D. 768, C. A. See (d) 38 & 39 Vict. c. 60, s. 22. (e) 38 & 39 Vict. c. 60, s. 16 (7), not applying to Scotland or Jersey. (f) Ibid., s. 16 (8). A fee of two shillings and sixpence is payable for the entry and certificate by means of stamps in Scotland. Part IV. OF VOID AND VOIDABLE SECURITIES. CHAPTER XXXI. OF MORTGAGES WHICH ARE VOID AS BEING IN FRAUD OF SECTION I. OF FRAUDULENT CONVEYANCES UNDER STAT. 13 ELIZ. c. 5. i. Avoidance of Conveyances made in Fraud of Creditors.-At Preference at common law a debtor may prefer any creditor, or any set of common law. creditors (a), and that although he is insolvent (b), and though such preference would be void under the Bankruptcy Acts. Even a declaration of trust by the debtor of property for his creditor, though uncommunicated to him, is valid, notwithstanding the debtor knew he was insolvent (c). And a warrant of attorney given voluntarily, although to the prejudice of other judgment creditors, is not unlawful or fraudulent (d). But various enactments have from time to time been passed by the legislature for rendering void dispositions of property made with intent to defeat the claims of creditors. c. 5. By the stat. 13 Eliz. c. 5 (made perpetual by the stat. Stat. 13 Eliz. 29 Eliz. c. 5), after a preamble stating the purpose of the Act to be the avoiding of feigned, covinous and fraudulent feoffments and other conveyances, "to the end, purpose and intent, to delay, (a) Holbird v. Anderson, 5 T. R. 235; Estwick v. Caillaud, 5 T. R. 424; Goss v. Neale, 5 Moo. 19; Eveleigh v. Purssford, 2 Moo. & R. 539; Westbury v. Clapp, 12 W. R. 511. (b) Nunn v. Wilsmore, 8 T. R. 528; Evans v. Jones, 3 H. & C. 423; Middleton v. Pollock, Exp. Elliott, 2 Ch. D. 104. (c) Middleton v. Pollock, Exp. Elliott, sup. (d) Holbird v. Anderson, 5 T. R. 235. CHAP. XXXI. hinder or defraud creditors of their just and lawful actions," &c., enacts as follows: Fraudulent conveyances declared void as against the creditors. Proviso for conveyances made bond fide and on good consideration. Effect of this enactment. What pro the statute. : Sect. 1. "All and every feoffment, gift, grant, alienation, bargain, and conveyance of lands, tenements, hereditaments, goods and chattels, or of any of them, or of any lease, rent, common or other profit or charge out of the same lands, tenements, hereditaments, goods, and chattels, or any of them, by writing or otherwise; and all and every bond, suit, judgment and execution, at any time had or made to or for any intent or purpose before declared and expressed, shall be deemed and taken (only as against such person or persons, his or their heirs, successors, executors, administrators, and assigns, and every of them, whose actions, suits, debts, accounts, damages, penalties, forfeitures, heriots, mortuaries, and reliefs, by such guileful, covinous or fraudulent devices and practices as is aforesaid, are, shall, or might be in any ways disturbed, hindered, delayed, or defrauded) to be clearly and utterly void, frustrate, and of none effect." Sect. 5. "Provided always, that this Act shall not extend to any estate or interest in lands, goods, or chattels, had, made, conveyed, or assured, which estate or interest shall be upon good consideration, and bond fide lawfully conveyed or assured to any person or persons, not having at the time of such conveyance or assurance any manner of notice or knowledge of such covin, fraud, or collusion as aforesaid." The effect of this enactment is to render void as against the creditors generally of the mortgagor all mortgages which are made with intent to defeat their claims; and also to render void as against creditors of the settlor, except so far as protected by sect. 5, mortgages of interests derived under settlements which are fraudulent and void under the Act (e). This statute only applies to such things as may be taken in perty is within execution, and, therefore, previous to 1 & 2 Vict. c. 110, the assignment of a bond was not within the statute (f); nor an assignment of stock (g); nor of any chose in action (h); nor were copyholds, it seems, within the Act (i), unless by tenure or special custom they were subject to debts (i). But it seems that such property might have been affected by that Act, taken in connection with the Insolvent Debtors Act, in the event of a subsequent insolvency (h), or taken in connection with the subsequent death of the debtor, when the creditors might reach all the personal property (h); and now (e) For an able discussion of the avoidance of settlements as fraudulent under this Act, reference may be made to Vaizey on Settlements, vol. ii. pp. 1526 et seq. (f) Sims v. Thomas, 12 A. & E. 536. (g) Dundas v. Dutens, 1 Ves. Jun. 196. (h) Norcutt v. Dodd, Cr. & Ph. 100; 10 L. J. N. S. Ch. 296. (i) Mathews v. Feaver, 1 Cox, 278, |