# The Building Societies (Isle of Man) Order 1987, Paragraph 3


(1) A territory advance shall be classified as a class 1 advance for the purposes of the requirements of Part III of the Act for the structure of commercial assets where the society at the time when it makes the advance is satisfied that—
(a) the borrower is an individual,
(b) the land comprising the security is exclusively for the residential use of—
(i) the borrower, or
(ii) the borrower and any person residing with the borrower;
(c) the amount advanced will not exceed the value of the land comprising the security (after deducting from that value any mortgage debt of the borrower to the society outstanding under a relevant form of security relating to that land); and
(d) the land comprising the security will not be security for any advance other than an advance by the society (except where that other advance is postponed to the society’s advance).
(2) For the purposes of subparagraph (1) above and paragraph 4 below, where a society makes an advance by instalments, the reference to the time when the society makes the advance is a reference to the time when it pays the first of the instalments.

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Source: https://www.legislation.gov.uk/uksi/1987/1498/schedule/1/paragraph/3 (the official version)
Page: https://openlegislation.uk/building-societies-isle-of-man-order-1987/schedule-1/paragraph-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.