TERMINATING BUILDING SOCIETY

Terminating building societies receive funds from the institutions such as savings banks and government bodies. They operate under government guarantees. The income levels of those eligible are set by the state and the funds are generally loaned to particular classes of individuals for housing.

EXAMPLE

Special loans for low income earners. When the funds are repaid the society is wound up or terminated. The terminating societies only have a small share of the housing finance market.

Compare with permanent building societies