Rules - Miscellaneous

Effective from 30 September 2010

36. Settlement of Disputes

The Society has an internal complaints procedure to resolve disputes with members. Any dispute which cannot be resolved may be referred to an ombudsman or any court with the relevant authority.

37. Notices

(a) Any notice to be given to the Society under these Rules must be in writing addressed to, and received by, the Secretary at the Society's head office.

(b) Any notice which the Society is not required by the legislation or these Rules or the terms and conditions of any share investment or mortgage loan to send to members personally may be given either by a notice displayed in a prominent position in every branch office or by advertisement in at least one national newspaper. Any such notice shall be assumed to have been served on the third day on which the notice has been displayed at branch offices or on the first day on which the notice has appeared in the national newspaper as the case may be.

38. Custody of the Seal and Securities

(a) The Society shall have a corporate seal and may have one or more facsimile copies of it. The Society's seal will contain its name. The Society will only use its seal with the authority of the Board and any document sealed shall be countersigned by an authorised individual. Documents may be sealed with the seal or a facsimile seal. All documents so sealed and countersigned shall be assumed to be validly executed by the Society.

(b) The Board will arrange for the safe custody of the Society's seal and any facsimile copies of it and of the Society's mortgage deeds and other securities.

39. Auditors

(a) The auditors shall be appointed at each Annual General Meeting to hold office from the end of the meeting until the end of the next Annual General Meeting.

(b) The Board shall decide the remuneration to be paid to the auditors.

40. Profits and Losses

(a) The Society may reserve all or part of the profit in any financial year either for general or specific purposes.

(b) Any loss shown in the Society's accounts for any financial year shall be met from reserves. If the reserves are insufficient, the loss shall be met by the holders of deferred share investments or subordinated debt in accordance with the terms of those investments and debts.

41. Dissolution or Winding Up

On dissolution or winding up any surplus remaining after the Society's creditors have been paid and all share investments have been repaid (according to any order of priority under the terms of issue):

(a) shall be paid in accordance with the instrument of dissolution (if any), but otherwise

(b) shall be divided among those investing members who hold deferred share investments at the relevant date and those who have held share investments of at least £100 continuously for two years at the relevant date, in either case in proportion to the amount of their share investments at the relevant date. The relevant date is the earlier of either the date of notice of a winding up or dissolution resolution or the date of presentation of a winding up petition.