Power to make advances and maximum rates of interest

(1) A society may make advances to its members out of its funds upon security of freehold or leasehold property by way of legal mortgage and on guarantees and shall have power to sell the property mortgaged without any order of court. (2) The provisions of section 69 and section 82 of the Law of Property Act, Cap. 190, shall apply to such sale as if such mortgage were a mortgage under the Law of Property Act, Cap. 190. (3) Where a society makes an advance on the security of a mortgage of freehold or leasehold property, it shall not in respect of that advance charge interest at a rate in excess of twelve per centum per annum or such other rate in lieu thereof as the Minister may fix by Order published in the Gazette. (4) An Order made by the Minister under subsection (3) of this section, shall provide that the rate of interest thereby fixed may be applied with effect from the date of the coming into force of the Order to mortgages subsisting at that date which contain provisions enabling the mortgagee to vary the rate of interest payable thereunder, as well as to mortgages given after that date. (5) No society shall by its rules provide for or permit the charging of interest in excess of the rates referred to in the preceding subsections and so much of the rules of any society as provide for or permit the charging of interest in excess of the said rate shall be ultra vires.