(1) Every person holding one or more shares in a building society shall be a member of the society.

(2) A society may, if its rules permit, allow a person—

(a) to whom a housing loan or associated home loan is made, or

(b) to whom a loan secured by a mortgage of a freehold or leasehold estate or interest in a house has been made under the repealed enactments,

to be a member even though the person does not hold shares in the society. However, the liability of a person who is allowed to be such a member must not be any greater than would be the case if the rules treated the person as being a holder of shares in the society because of the making of the loan.

(2A) Subsection (2) continues to apply to a person referred to in that subsection even if the society's rights in respect of the loan are disposed of under section 18(6).

(2B) Subject to subsection (2C), a building society may permit any or all of the following to be a member: