Statutory Instrument 1987 No. 1500

The Building Societies (Prescribed Contracts) (Amendment) Order 1987

---

© Crown Copyright 1987

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Building Societies (Prescribed Contracts) (Amendment) Order 1987, ISBN 0110775007. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1987 No. 1500

BUILDING SOCIETIES

The Building Societies (Prescribed Contracts) (Amendment) Order 1987

The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by section 23(2) of the Building Societies Act 1986^[1] , and of all other powers enabling it in that behalf, hereby makes the following Order:

Citation and commencement
    1.    This Order may be cited as the Building Societies (Prescribed Contracts) (Amendment) Order 1987 and shall come into force on 1st October 1987.

Interpretation
    2.    In this Order "the 1986 Order" means the Building Societies (Prescribed Contracts) Order 1986^[2] .

Amendment of 1986 Order
    3.    The 1986 Order shall be amended as follows —
 (a) in article 2 (interpretation), in the definition of "participant" , the words "(other than a guarantor)" shall be inserted after the word "contract" ;
 (b) in article 3, paragraph (3) (which limits participants) shall be replaced by the following paragraph —
"  (3)  No prescribed contract may be effected by a society save where the obligations of the participant thereunder fall to be performed by —
(a) a person some of whose liabilities societies, or societies of a particular description, are empowered for the time being, under section 21 (liquid assets) of the Building Societies Act 1986, to hold as assets of an authorised character, or

(b) a person performance of whose obligations under the contract is guaranteed by a person who comes within subparagraph (a) above." .

Transitional Provision
    4.—(1)  Nothing in this Order shall be taken to invalidate any contract effected by a society in the previous period in accordance with the 1986 Order as a prescribed contract.

    (2)  For the purposes of this article the previous period is the period which —
 (a) began on the day on which the 1986 Order came into force, and
 (b) ended on the day before the day on which this Order came into force.

In witness thereof the common seal of the Building Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 13th August 1987.


D. B. Severn

Secretary to the Commission

We consent to this Order

Peter Lloyd

David Lightbown

Two of the Lords Commissioners of Her Majesty's Treasury

20th August 1987

This Order amends the Building Societies (Prescribed Contracts) Order 1986, which prescribes types of contract which a building society may enter into under section 23 of the Building Societies Act 1986 for the purpose of reducing the risk of loss. The requirement formerly in article 3 of the 1986 Order that a prescribed contract may only be effected where the other party (referred to in the Order as a "participant" ) is a bank authorised to hold building society funds is replaced by a new requirement. This is that the other party (besides any guarantor) must be a person who is, or whose obligations are guaranteed by, a person whose liabilities may be held as assets by building societies for the purposes of the liquidity requirements imposed on societies by the Building Societies Act 1986. The validity of prescribed contracts previously entered into under the 1986 Order is preserved by article 4 of this Order.

[1] 1986 c. 53. back

[2] S.I. 1986/2098. back