The Building Societies (Designation of Qualifying Bodies) Order 1993

Contents

Article 1Title and commencement#

This Order may be cited as the Building Societies (Designation of Qualifying Bodies) Order 1993 and shall come into force on 1st May 1993.

Article 2Interpretation#

In this Order, except where the context otherwise requires—• “the Act” means the Building Societies Act 1986;• “body” means a body corporate of the description specified in column 1 of Part I of Schedule 1 to this Order;• “the relevant power”, in relation to a body, means the power for the exercise of which, as specified in column 3 of Part I of Schedule 1 to this Order, that body is designated as suitable, and• “society” means a building society.

Article 3Designation of bodies corporate#

(1)Each body corporate of the description specified in column 1 of Part I of Schedule 1 to this Order is designated for the purposes of section 18 of the Act (power to invest in subsidiaries and other associated bodies) and within that Part of that Schedule—

(a)the corresponding item in column 2 specifies, where that body corporate comes within the description so specified, the meaning of that description for the purposes of this Order;

(b)the corresponding item in column 3 specifies that the body is designated as suitable for investment and support (but not for support only);

(c)the corresponding item in column 4 specifies the purposes for which (in addition to the purposes permitted by section 18(4) of the Act) the exercise of the relevant power by a society is permitted in relation to that body, and

(d)the corresponding item in column 5 specifies the condition subject to which the exercise of the relevant power by a society is permitted in relation to that body.

(2)Part II of Schedule 1 to this Order shall have effect—

(a)so as to supplement Part I thereof, and

(b)in respect of interpretation of that Schedule.

Article 4Amendments of previous Orders#

The following Orders shall have effect subject to the amendments set out in Schedule 2 to this Order: the Building Societies (Designation of Qualifying Bodies) Order 1990; the Building Societies (Designation of Qualifying Bodies) Order 1991; the Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1991; the Building Societies (Designation of Qualifying Bodies) Order 1992; the Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1992; the Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1992, and the Building Societies (Designation of Qualifying Bodies) (No. 4) Order 1992.

Schedule 1

Part I · Description of designated body corporate

Part II · Interpretation

(1)In this Schedule “specified type of body corporate” means a body corporate which is—

(a)a body corporate formed in a member State other than the United Kingdom,

(b)a body corporate formed in a relevant British overseas territory (within the meaning of section 14 (power to make advances secured on land overseas) of the Act), or

(c)a body corporate formed in any of the following countries:

(2)In this Schedule “the standard asset provision” means a condition to the effect that—

(a)the relevant power is not available to a society which does not for the time being have a qualifying asset holding, but

(b)the cessation of its availability does not require the disposal of any property or rights.

(3)In this Schedule “funding body asset” means any asset which is of a description and is held in such circumstances as may be prescribed for the time being by Regulations made under section 21(7) of the Act as if, where applicable in those Regulations:

(a)references to “liquid asset” were references to “funding body asset”, and

(b)references to “society” were references to “funding body”,

and that any conditions prescribed by those Regulations with which a society must comply are complied with by the funding body.

(4)

(1)In this Schedule “the particular restrictions for funding bodies” means the provisions set out in sub-paragraph (2) below.

(2)A body corporate is not a funding body for a society where—

(a)it is a market maker,

(b)it is an authorised institution, or its business requires it to be authorised, for the purposes of the Banking Act 1987 or it otherwise carries on a deposit taking business in the United Kingdom within the meaning of section 6 of the Banking Act 1987,

(c)its business includes activities in the range from which the society is restricted within the meaning of paragraph 5 below, or

(d)it owns 5% or more of shares or corresponding membership rights in another body corporate which the society does not have power to invest in and support or support.

(5)For the purposes of paragraph 4(2)(c) above an activity of a body corporate is an activity in the range from which a society is restricted where it is an activity which the society could not undertake by reason of the fact that—

(a)it has not adopted a particular adoptable power, whether because the power is not available to it or for any other reason, or

(b)the activity would be in contravention of a restriction upon the extent of a power the society has adopted being either a restriction derived from the Act or any instrument under the Act or a restriction assumed by the society.

(6)In this Schedule, except where the context otherwise requires—• “investment” in the definition of “market maker” has the meaning which it bears in section 1 (investment business) of the Financial Services Act 1986;• “market maker” means—(a) in relation to the United Kingdom, a market maker in securities of a particular kind,(b) in relation to any country or territory outside the United Kingdom, a person who holds himself out at all normal times as willing to buy and sell at a price specified by him investments of a particular kind which are traded on any exchange in that country or territory;• “market maker in securities of a particular kind” means a person who, for the purposes of subsection (4) of section 67 (depositary receipts) of the Finance Act 1986, is so described in section 69(7) (depositary receipts: supplementary) of that Act.

Schedule 2

(1)In Part II of the Schedule—

(a)in paragraph 4(2) there shall be deleted “(c)”, and

(b)in paragraph 7 there shall be deleted sub-paragraph (2)(c).

(2)In Part II of the Schedule—

(a)in paragraph 3(2) there shall be deleted “(b)”, and

(b)paragraph 4(2)(b) shall be deleted.

(3)In Part II of the Schedule—

(a)in paragraph 2(2) there shall be deleted “(b)”, and

(b)paragraph 3(2)(b) shall be deleted.

(4)In paragraph 3 of Part II of the Schedule—

(a)in sub-paragraph (1)—

(i)there shall be substituted for the words “the borrower mortgages legal estate in land” the words “the borrower grants a mortgage of land”, and

(ii)there shall be substituted for the words “in such land” the words “in such mortgage”, and

(b)for sub-paragraph (2) there shall be substituted the following new sub-paragraph—“2 For the purposes of sub-paragraph (1) above—a “a mortgage of land” means any of the following:i a mortgage of a legal estate in land;ii a mortgage of any title or interest in or over land which is situated outside England, Wales and Northern Ireland;iii a heritable security over land, andiv any form of security equivalent to a mortgage which acknowledges a debt, obliges the borrower to pay it and secures payment of that debt on land which is situated outside the United Kingdom, andb “beneficial and legal, or beneficial interest in such mortgage” shall, if the land is situated outside England, Wales and Northern Ireland, mean any title in such mortgage.”

(5)In the Schedule—

(a)in Column 2 of Part I there shall be deleted the words “which is a wholly-owned subsidiary of the society and”, and

(b)in paragraph 5 of Part II there shall be deleted the words ““wholly-owned subsidiary”” up to and including the words “wholly-owned subsidiaries of that society, and persons acting on behalf of that society.”.

(6)Paragraph 4(2)(ii) shall be deleted in Part II of the Schedule.

(7)In Part II of the Schedule—

(a)in paragraph 4(2) there shall be deleted “(c)”, and

(b)paragraph 6(2)(c) shall be deleted.

Contains public sector information licensed under the Open Government Licence v3.0.

The Building Societies (Designation of Qualifying Bodies) Order 1993

Article 1Title and commencement#

Article 2Interpretation#

Article 3Designation of bodies corporate#

Article 4Amendments of previous Orders#

Schedule 1

Part I · Description of designated body corporate

Part II · Interpretation

Schedule 2

Defined terms · 10

Connections

Key facts

History · 1 version

Article 1Title and commencement#

Article 2Interpretation#

Article 3Designation of bodies corporate#

Article 4Amendments of previous Orders#

Schedule 1

Part I · Description of designated body corporate

Part II · Interpretation

Schedule 2