(1) Any number of persons may establish a society for the purpose of raising by the subscriptions of members a stock or fund for making advances to members out of the funds of the society.
(2) A society may be either a terminating society or a permanent society.
(3) Advances made by a society out of its funds shall be made upon the security of a hypothecary obligation or mortgage of a freehold or a leasehold estate or upon the security of the withdrawal value of shares held by members of the society.
(4) Any society shall, so far as is necessary for the purpose of advances made upon the security of a mortgage, have power—
(a) to hold land, with the right of foreclosure;
(b) from time to time to raise funds by the issue of shares of one or more denominations either paid up in full or to be paid by periodical or other subscriptions, and with or without accumulating interest; and
(c) to repay such funds when no longer required for the purposes of the society.
However any land to which a society may become absolutely entitled by foreclosure or other extinguishment of the right of redemption shall, as soon after as may be conveniently practicable, be sold or converted into money.