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Security for loans.
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78.—(1) A loan made by a society shall not exceed the valuation in accordance with section 79 on the freehold or leasehold estate offered as security for the loan.
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(2) In determining the amount of a loan a society may take into account the value of any additional security, other than freehold or leasehold estate, which is available in respect of the loan.
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(3) The Registrar may give a direction in relation to the classes of security (other than freehold or leasehold estate) which may be taken into account by a society in determining the amount of a loan, and for this purpose may direct the conditions or arrangements which shall apply to the taking into account of a specified class or classes of additional security.
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(4) Where a loan is sought for the purpose of defraying the purchase price of an estate and security (other than freehold or leasehold estate) is taken into account in determining the amount of the loan, the amount of the loan shall not exceed that purchase price and shall not exceed by more than 25 per cent the maximum amount which the society would consider it proper to advance on the security of the estate if no other security were taken by the society.
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