Indemnification of Corporation.

When any payment is made or act done by the Corporation in accordance with the Act or the Birmingham Municipal Bank regulations or these rules, they shall be indemnified against all claims on the part of any person in respect of such payment or act, but any person may nevertheless recover any sum lawfully due to him from the person to whom the Corporation have paid the same.

Alteration of Rules.

The Corporation may, on the recommendation of the Committee of Management, from time to time alter or rescind all or any of the then existing rules of the Bank, or make any new rules in conformity with the Statutes and Statutory Regulations for the time being relating to the Bank, but no alteration or rescission of rules or new rules shall come into force until approved by the Chief Registrar of Friendly Societies and the Treasury.

Commencement of Rules.

These rules, and any alterations or amendments thereof, shall come into force as soon as they shall have been approved by the Chief Registrar of Friendly Societies and the Treasury.

Winding up.

The Corporation, acting by the Council of the City of Birmingham, may at any time pass a resolution intimating their desire to discontinue the operations of the Bank, whereupon the Bank shall forthwith be wound up in the manner to be prescribed by the Committee of Management.

                                                           ADDITIONAL RULES AS TO HOUSING DEPARTMENT

Procedure in Respect of House Purchase

Any depositor desiring to purchase or acquire a dwelling house or dwelling houses, or any interest therein, must fill up an application form giving particulars of the property, the nature of his interest, the amount of the advance applied for, and such other information as the Committee may require.

Extent of Advance to be made.

The Committee of Management reserve to themselves the right to determine to what extent an advance may be made, and under what conditions, but in no case shall and advance be made which exceeds 80 per cent of the purchase price market value of the property or interest or for a longer period than 20 years.

Valuation of Property.

The property in respect of which an advance is applied for shall, if the Committee so decide, be valued by the person or persons appointed by the Bank for that purpose.

Mortgage Deed.

All property, on the security of which an advance is made, shall be mortgaged to the Bank until the advance or any other payments under these rules be repaid, and such Mortgage Deed shall be prepared by the Solicitor of Town Clerk as the Bank Solicitor to the Bank,  and for that purpose shall be in such form and contain such powers, covenants, stipulations and conditions as such Solicitor shall consider necessary proper.

Copy of Mortgage Deed.

Every Depositor, to whom an advance is made, may have, at his own expense, a copy of his Mortgage Deed delivered to him, certified by the signature of the Solicitor.

Prior Mortgage.

No advance shall be made by the Bank to a depositor upon property which is already subject to any prior a Mortgage other than to the Bank.

Interest on Advances.

Interest on advances shall be charged at the rate of one penny per pound per month on the balance outstanding, or such other rate as the Committee of Management may from time to time determine, and which is in force at the time the advance is made.

Repayment of the Advance.

The repayment of the advance with the interest thereon shall be made by instalments of not less that such amounts as will pay off the indebtedness within the period for which the loan was granted the first instalment becoming due one calendar month after the completion of purchase, and subsequent instalments shall continue to become due each calendar month thereafter until the advance is paid off.

Nothing in these Rules shall operate so as to prevent a Depositor making a repayment in excess of the minimum amount agreed upon and thus reducing his indebtedness nor of the right of a Depositor to pay off his entire indebtedness before the expiration of the period fixed for the repayment.

Failure to make repayments.

Any Depositor failing to make the minimum repayment agreed upon according to the dates fixed for such repayments to be made shall paysuch interest as the Committee of Management may direct, but not exceeding after the rate of one penny per pound per month on such arrears.

Insurance.

All property mortgaged to the Bank shall be insured against fire by the Manager in the name of the Bank for such a sum as the Committee of Management may determine, and the premiums in respect of such insurance, which will shall be paid by the Bank in the first instance shall be charged debited to the account of the Depositor and or be repaid by him.

Application of money received from Insurance Company.

In case the any property so insured shall sustain damage by fire, the Bank shall receive the money payable by the Insurance Company, which shall be applied in the first place in discharge of any sums owing by the Depositor to the Bank, and in the second place or, at the option of the Committee of Management, in repairing or reinstating the property destroyed or damaged by fire. Any surplus remaining after all arrears and expenses have been deducted shall be paid to the Depositor.

The Manager of the Bank shall give a receipt to the Insurance Company for any money received as hereinbefore mentioned, which receipt shall be sufficient discharge to the Insurance Company.

Ground Rents and other Payments.

All ground rents and other payments in respect of property Mortgaged to the Bank shall be paid when due by the Depositor, who shall produce to the Bank the receipt for the payment within thirty days from the date on which the charge is payable, to the Bank the receipt for the payment. In case of failure to produce the receipt the Bank may pay such charge which shall be debited to the account of the Depositor and or be repaid by him.

Discharge of Mortgage.

On full payment of the advance with interest and all other charges legally due, the Depositor shall be given all Title Deeds, and any other documents relating thereto which may be in possession of the Bank, together with a legal discharge of the Mortgage.

Power of Inspection.

The Committee of Management, or any Officer of the Bank appointed for the purpose, shall have power to inspect any house in respect of which an advance has been made at all reasonable times for the purpose of ascertaining whether the conditions laid down are being complied with.

Depositor absconding or property depreciating.

In case a Depositor shall abscond, or the property have been injured or suffering depreciation through mismanagement or from any cause whatever the Committee shall have power to take possession of the property.

Realizing property in possession.

In all cases where the Bank is, from the default or neglect of the Depositor, under the necessity of selling or leasing the property, the money produced by such sale or lease, shall in the first place be applied in payment of all costs and expenses incurred on account thereof, and in the next place in liquidation of any payments whatever due to the Bank in respect of such property. In case the produce of the sale or lease, after deducting all the aforesaid expenses be not sufficient to discharge the amount due to the Bank, the Depositor so in default shall immediately pay the balance due to the Bank. In case there shall exist, after payment of all the aforesaid expenses, any surplus arising from the sale or lease of the property, the same shall be paid to the Depositor, his heirs, executors, administrators or assigns, or as he or they may direct.

Depositor in arrears for three months.

In the case of any Depositor being three months in arrear with his repayments, the Bank shall have power to take possession of the property as provided for in Rule 34. But the Committee of Managementof the Bank shall have power to suspend or modify the repayments of a Depositor for such period as they shall determine on his showing satisfactory reasons for requiring such suspension or modification.

Power to sell, exchange or redeem property.

If any Depositor, who shall have executed a Mortgage to the Bank, shall be desirous of selling the property, subject to the Mortgage, he shall be at liberty to do so, on the consent of the Bank Committee of Management being obtained thereto, and upon such transfer sale being completedand all sums due to the Bank from the Depositor being paid, and the conveyance to the purchaser being executed, such purchaser shall thenceforth become liable to make all such payments in respect of the property as may be required by these Rules, and the Bank may grant to the Depositor, at his own expense, a release from all future liabilities in respect thereof. The Depositor shall be liable for any expenses in connection with such transfer sale. The Bank shall have power to withhold their consent as aforesaid if the Committee are not satisfied with the security.

Settlement of disputes.

Clause 18 and 19 of the Regulations contained in the Schedule to the Birmingham Corporation Act 1919, referring to any dispute between the Corporation and any Depositor in the Bank as regards money deposited in the Bank, shall apply equally to any dispute arising between a Mortgagor and the Corporation.

Conditions affecting House Purchase.

A house or houses purchased or acquired by means of an advance shall not be used for the sale of intoxicating liquors or in such manner as to be a nuisance to adjacent houses.

Bankruptcy of Depositors

In the case of the estate of a depositor who has obtained an advance from the Bank being administered in Bankruptcy or under a Deed of Assignment the Committee may either take possession of the house or order the sale of the house without taking possession, and shall do so except in pursuance of some arrangement to the contrary, with the Trustee in Bankruptcy or under the Deed.