(d) In or upon any stock or securities, payment of the interest on which is guaranteed by authority of parliament.

(e) In the case of terminating societies, with other societies under the Building Societies Act, 1874. 37 & 38 Vict. c. 42, s. 25.

178. Trustees may be appointed for the purpose of investments in the public funds or upon security of copyhold or customary estate. 37 & 38 Vict. c. 42, s. 25.

179. Land may be purchased. The surplus funds may be invested in purchase of real estate, if the rules so provide. Mullock v. Jenkins, 1851, 14 Beav. 628; 21 L. J. 65, Ch. But a contract entered into by the directors of a building society for the purchase of land to a greater extent than the amount of the boná fide surplus funds was held to be a breach of trust, and the directors who authorized the payment of the money were held liable to replace the same, as having misapplied trust money: Grimes v. Harrison, 1859; before Romilly, M. R., 26 Beav. 435; 33 L. T. 115, Ch.; 28 L. J. 823, Ch.; 5 Jur. (N. s.) 528.

180. May be lent to non-members.—It has been decided that under 10 Geo. 4, c. 56, s. 13 (incorporated with 6 & 7 Will. 4, c. 32), a society may lend its surplus funds on real security to persons not members, and may lend surplus funds to members on security of property already in their possession (Cutbill v. Kingdom, 1847, 1 Ex. 494; 17 L. J. Ex. 177; Morrison v. Glover, 1859, 4 Exch. 430; 19 L. J. 20 Ex.); and the statute 37 & 38 Vict. c. 42, imposes no restriction in this respect. ·

See also LAND, and Co-OPERATIVE LAND SOCIETIES.

SURVEYOR.

181. The surveyor is bound by the rules as an officer of the society (37 & 38 Vict. c. 42, s. 21), and, therefore, has no remedy against individual directors if the rules provide that he shall look to the funds only for payment. This was decided before the passing of the Building Societies Act, 1874: Alexander v. Worman, 1860, 6 H. & N. 100; 30 L. J. 198 Ex.; 8 L. T. (N. s.) 477.

182. Surveyor making an incorrect report. If the report of the surveyor be grossly incorrect, and the society sustain loss, he is not entitled to recover anything for the work and labour done and is liable to an action for damages: Moneypenny v. Hartland, 1824, 1 Car. & P. 352.

The manner of his appointment, remuneration, and removal must be set forth in the rules. See OFFICERS (97).

See also MEMBERSHIP.

TAXATION of costs. See REDEMPTION (126).

TENANCY.

177. What is the effect of a tenancy clause in a Mortgage Deed.-In Walker v. Giles, 1848, 6 C. B. 662 (per Wilde. C. J.) it was held that "the object and general contents of a mortgage deed are inconsistent with the intention of creating the relation of landlord and tenant." But that decision has called forth some animadversion; and in more recent cases (Pinhorn v. Souster, 1853, 8 Exch. 763; Brown v. Metropolitan Counties Assurance, 1859, 4 H. & N. 428, 1 El. & El. 832) a tenancy has been held to have been created.

"The tenancy clause in a mortgage deed creates a rent, with all its incident remedies": Keech v. Hall, 19 Geo. 3, 1 Smith L. C. 5th ed. 505; Jolly v. Arbuthnot, 1859, 4 De G. & J., 224. It does not create such a tenancy as would give the

county courts jurisdiction under the 122nd section of the County Courts Act, 9 & 10 Vict. c. 95: Jones v. Owen, 1848, 18 L. J. Q. B. 8. But in Third British Building Society v. Barrett, 1849, 14 L. T. 259, Mr. Serjeant Jones, Judge of the Islington County Court, gave possession to the trustees of a building society under the tenancy clause.

"The utmost effect which can be given to the clause is to create a tenancy at will:" Blackburn, J., in Turner v. Barnes, 1862, 2 Best & Smith 435; Doe d. Bastow v. Cox, 1847, 11 Q. B. 122, 17 L. J. Q. B. 3.

An action of debt for use and occupation would lie : Standen v. Christmas, 1847, 10 Q. B. 135; Barnard v. Pilsworth, 1849, 6 C. B. 698a.

184. Notice of commencement of tenancy must be given to defaulting mortgagor-Power to distrain.By a mortgage deed it was provided that the mortgagor, in the event of his making default in payment of the sums advanced to him, should immediately or at any time after such default hold the mortgaged premises as yearly tenant to the mortgagees, the trustees of a building society, from the date of the deed at a specified rent, and that they should have the same remedies for recovering the rent as if the same had been reserved upon a common lease.

The mortgagor having made default, the mortgagees, without having given him any notice of their intention thenceforward to treat him as a tenant, distrained after the lapse of more than a year from default as for a year's rent in arrear.

The Court of Exchequer (Kelly, C. B., Martin, Channell, and Pigott, BB.) held, that, not having given him notice of their intention to treat him as a tenant they were not entitled to distrain.

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Martin, B., in delivering the judgment of the court, said :"The defendants insisted that upon the mortgagor making default in March, 1868, he became their tenant, and that they had, therefore, a right to distrain on the 4th May, 1869, for a year's rent which had become due according to their contention on the first of May. There was, however, no notice given by the mortgagees to him of any determination on their part to

alter the terms on which he held. We think that before such a clause as this can be acted upon, some notice must be given to the mortgagor of the determination of the mortgagees to treat him as a tenant or that some communication on the subject must take place."

Clowes v. Hughes, 1870; L. R., 5 Ex. 160; 18 W. R. 459, Ex.

185. Mortgagor, occupying premises as tenant to mortgagees, sub-letting to third party. As to right of mortgagees to distrain on goods of third party.-Defendants, the trustees of a building society, distrained upon certain premises for rent, under a power of distress contained in a mortgage deed executed between the mortgagor and the defendants, the mortgagees, whereby the said premises were demised to them and it was provided that in case of non-payment of certain monthly instalments, the defendants might distrain for the amount in arrear, as for rent in arrear upon a common demise.

When the mortgage was executed, the mortgagees were in possession of the premises, but shortly afterwards the mortgagor took possession, and subsequently without the consent or knowledge of the mortgagees let the premises to the plaintiff, who had no knowledge of the mortgage. At the time of the distress, one quarter's rent was due from the plaintiff to the mortgagor, while several monthly instalments were due from the mortgagor to the society. In an action of replevin in the county court the judge found for the plaintiff. The defendants appealed.

The Court of Queen's Bench (Blackburn, Lush, and Archibald, JJ.) held that the mortgage-deed contained a license to seize the mortgagor's goods only, and as there was no agreement for rent to be paid by plaintiff to defendants, the county court judge was quite right: Gibbs (resp.) v. Cruikshank (app.), 1873; 54 L. T. 250.

TERMINATING SOCIETY defined. See DEFINISee MORTGAGE (89).

TIONS.

Mortgage to a.

TRANSFER OF BUSINESS.

186. A society may transfer its engagements to any other society, upon terms to be agreed upon by threefourths of the members (holding not less than twothirds of the whole number of shares) of each society present at general meetings respectively convened for the purpose. 37 & 38 Vict. c. 42, s. 33.

Rights of creditors not to be prejudiced by such transfers. 37 & 38 Vict. c. 42, s. 33.

Notice of transfer to be sent to the registrar and registered by him. 37 & 38 Vict. c. 42, s. 33.

TRANSFER OF SHARES.

187. A building society may describe the form of transfer in a schedule to its rules. 37 & 38 Vict. c. 42, s. 19.

Transfers are exempt from stamp duty. 37 & 38 Vict. c. 42, s. 41.

TREASURER.

188. Under the Building Societies Act, 1874.—The rules must set forth the manner of his appointment, remuneration, and removal, as well as his powers and duties. 37 & 38 Vict. c. 42, s. 16.

189. He must give security in manner provided by the Act, being an officer who has the receipt or charge of money belonging to the society, before taking upon himself the execution of his office. 37 & 38 Vict. c. 42, s. 23.

190. He is liable to account when the rules appoint, and when called upon by the directors to do so, and to pay over all moneys, and give up all securities and effects, &c., of the society remaining in his hands; and in default may be proceeded against in manner provided by the Act. 37 & 38 Vict. c. 42, ss. 23, 24.

191. He is not liable in case of robbery: Walker v. British Guarantee Assurance, 1852, 18 Q. B. 277.