The Building Societies (Liquid Asset) Regulations 1987

Citation and commencement

1.  These Regulations may be cited as the Building Societies (Liquid Asset) Regulations 1987 and shall come into force on 1st October 1987.

Interpretation

2.  In these Regulations—

“the Act” means the Building Societies Act 1986;

“liquid asset” means an asset of a character which societies may hold under section 21 (liquid assets) of the Act for the purpose of meeting their liabilities as they arise;

“predecessor” means, in relation to an existing society—

(a)

a society which has transferred its engagements to that existing society, or

(b)

a society which—

(i)

has amalgamated with one or more societies under section 93 of the Act (amalgamations) so as to establish that existing society as their successor, or

(ii)

has united with one or more societies under section 18 (unions) of the Building Societies Act 1962(1) or of the Building Societies Act (Northern Ireland) 1967(2) so as to become that existing society; and

“society” means a building society.

Prescription of liquid assets

3.—(1) Each description of assets which—

(a) comes within a provision of Part I of the Schedule hereto, and

(b) where a provision of Part II of the Schedule hereto applies to it, conforms with the requirements of that provision,

is prescribed as a description of liquid assets.

(2) Part III of the Schedule hereto has effect for determining the circumstances in which, and the conditions subject to which, the descriptions of assets referred to therein may be held by societies.

(3) The definitions in Part IV of the Schedule hereto have effect in respect of the interpretation of that Schedule.

Transitional provision

4.—(1) This regulation applies to assets of a society which are not liquid assets under these Regulations but—

(a) are assets which—

(i) were previously liquid assets and have ceased to be so, and

(ii) have been held by the society continuously since a date before the date on which they ceased to be liquid assets, or

(b) are assets which—

(i) were treated, by virtue of article 7 (liquid assets) of the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986(3), as if they were prescribed in liquid asset Regulations, and

(ii) have been held by the society continuously since a date before the date on which these Regulations came into force.

(2) A society which so holds assets to which this regulation applies shall not lose its power to continue to hold those assets.

(3) In this regulation a society is treated as including any predecessor of the society.

In witness whereof the common seal of the Building Societies Commission is hereunto 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.

L.S.

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