Rules
Effective from 1 September 2008
Words and figures in italics are explained in the interpretation section at the end of the Rules
General
1. Constitution
These Rules, together with the Memorandum, set out the constitution of Nationwide Building Society. The interpretation section forms part of the Rules.
2. Name and Address
The Society's name is Nationwide Building Society. Its principal or head office is Nationwide House, Pipers Way, Swindon SN38 1NW or such other address as the Board may decide.
3. Commitment
These Rules and the Memorandum are binding on the Society and its members. They may only be changed by a special resolution.
4. Source and use of funds
The Society raises funds by accepting share investments, borrowing and taking deposits. The Society uses these funds to make mortgage loans to borrowing members and for other purposes allowed in the Memorandum.
5. Share Investments
(a) Share investments may be of such types (including preferred share investments and deferred share investments) and on such terms and conditions as the Society decides. The preferred share investments and deferred share investments in issue at any time will not exceed in total more than 25% of the principal amount of all kinds of share investments in issue at the end of the last financial year.
(b) Share investments are governed by the terms and conditions applicable to them. Unless the terms and conditions provide otherwise, the Society will inform members of any change to them by giving notice under Rule 37. The following provisions apply despite any provision to the contrary in the terms and conditions applicable to any share investments:
i. The Society may repay any share investments (other than deferred share investments) at any time either by giving notice equivalent to any notice period or unexpired fixed term period applicable to it or without giving notice but with interest in respect of any such period.
ii. The Society may withhold or limit repayment of any share investment when obliged to do so by law or by order of a competent court or other authority, or for a maximum period of six months when this is prudent or in the interests of members generally.
iii. The Society may withhold all or part of any share investment (other than deferred share investments or any share investment which is clearly designated as an account which a member holds for another person) and use it to pay or reduce any debt owed to the Society which is due or overdue for payment.
iv. The Society may close the account and retain any share investment if it cannot trace the member concerned after reasonable enquiry where:
(1) the value of the share investment is less than £100 and there has been no transaction on the account for at least two years,
(2) the value of the share investment is £100 or more and there has been no transaction on the account for at least five years
but this does not affect the member's right to claim the value of the share investment together with interest that would have accrued after cancellation.
v. A member may transfer his share investment with the Society's consent to an individual using such form as the Society may require for this purpose. The Society's consent will not be required in the case of a deferred share investment.
vi. The Society will not pay interest on fractions of £1.
6. Mortgage Loans
Mortgage loans may be of such types and amounts and on such terms and conditions as the Society decides. Unless those terms and conditions provide otherwise:
(a) a borrowing member may repay the whole or any part of his mortgage loan at any time;
(b) the Society may capitalise any interest or other payment which is overdue on 31 December in any year and at any time on giving 14 days notice;
(c) the Society may charge for administration in accordance with any general tariff of charges it sets; this tariff may be changed from time to time to reflect any change in the cost of administration and the Society will give notice of these changes;
(d) any property comprising the security shall be insured for such sum and against such risks as the Society may reasonably decide.