Charitable Foundation

The Society wants to avoid disruption to its business caused by speculators. As a result all new customers opening share accounts are required to agree to assign any windfall benefits to which they might become entitled on a future conversion or take-over of the Society. The assignment will be in favour of the Community Foundation, one of the leading community foundations in the UK. The agreement will be for a period of 5 years.

Agreement To Assign Windfalls To Charity

Words printed in bold below are explained in notes at the end.

  1. Paragraphs 2 to 6, below, will apply to you unless you are an exempt customer at the time when the Account is opened.
  2. You agree with the Society that, if the right to any windfall benefits is granted to you after the Account is opened, I will assign those windfall benefits to the selected charity unless either of the following applies:
    • The period between your Account being opened and the conversion announcement date is more than 5 years (or, if applicable, the shorter period).
    • On the conversion announcement date, you are a borrowing member of the Society.
  3. You authorise the Society and the successor to pass any windfall benefits direct to the selected charity (or to any other charity which the selected charity may nominate to receive those benefits) without notice to you.
  4. You authorise that the Society has promised to transfer to the selected charity the benefit of the agreement which you have given under condition 2, above; neither the Society nor the selected charity will release you from that agreement; and any power of the Society to change the terms of its contract with you will not apply to any of the terms set out in this section.
  5. You authorise the Society to give the selected charity any information about you or any account which you have with the Society (now or in the future) but only if the selected charity reasonably needs it regarding the agreement you have given under condition 2, above.
  6. You understand that the Society will require anyone who opens a share account (who is not then an exempt customer) to agree to assign to charity the right to any windfall benefits which that person may become entitled to. The terms of the agreement will be decided by the Society and may be different from the terms in conditions 1 to 5 above. This condition will no longer apply if the Society publishes a notice in the press of a decision by the Society that it will no longer require new share holding members to enter into such agreements.

Notes

These notes apply to conditions 2 to 6, previously detailed.

  1. The Account is the share account which you are applying to open.
  2. The conversion announcement date means the date on which the Society makes a public announcement of a proposal to transfer its business to a successor.
  3. The current terms means terms which are the same as, or similar to the terms set out in conditions 2 to 5 previously detailed.
  4. You are an exempt customer when you open the Account if:
    • you have held shares in the Society (other than permanent interest bearing shares) for a period of five years; or you are a borrowing member of the Society; or
    • you have already entered into an agreement with the Society binding you to the current terms; or
    • you belong to one of the groups of the other people who, in the Society's opinion, do not need to be asked to agree to the current terms. A list of these groups is available from the Society at any time. The Society may alter the number and composition of the groups from time to time, but no alteration will apply retrospectively.
  5. A person 'opens' an Account either by opening a new Account or by having an existing account transferred into his or her name (whether as sole or joint holder).
  6. The selected charity means the Community Foundation or, if it is at any time no longer a registered charity, any other charity or charities selected by it to receive assignment of windfall benefits.
  7. A 'shorter period' is applicable if, when the Society opens your Account, you belong to one of the groups of people who, in the Society's opinion, do not need to be asked to agree the usual five year period. A list of these groups, stating the periods applicable to them, is available from the Society at any time. The Society may alter the number and composition of the groups and the period applicable to them from time to time, but no alteration will apply retrospectively.
  8. The 'successor' is any company or other corporate body to which the Society transfers its business under section 97 of the Building Societies Act 1986 (or under any provision which amends or replaces it).
  9. A 'windfall benefit' is a benefit which a person has the right to receive as a shareholding member of the Society, under the terms of any future transfer of the Society's business to a successor (i.e. on a conversion or take-over), other than:
    • the replacement of savings in a share account with the Society with savings in a deposit account with the successor, or
    • any benefit which the Society has decided may be kept by a person who has a number of accounts and was an exempt customer when opening one or more (but not all) of them. A list setting out the conditions which determine whether, and to what extent, such a person may keep a benefit is available from the Society at any time. These conditions may be altered by the Society from time to time, but no alteration will apply retrospectively.
  10. Where more than one of you is opening this Account, conditions 1 and (if applicable) conditions 2 to 6, previously detailed, apply to each of you separately.

If the Society no longer exists following a merger with another building society, conditions 2 to 6, previously detailed, will still apply between you and the other building society.

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