Limits of borrowing power

In calculating the amount for the time being secured to a society by mortgages from its members for the purpose of ascertaining the limits of its power to receive deposits or loans at interest, the amount secured in properties, the payments in respect of which were upwards of twelve months in arrears at the date of the society’s last preceding annual account and statement, and the amount secured on properties of which the society has been twelve months in possession at the date of such account and statement, shall be disregarded.