The Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993

Amendments of the Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1993

6.  The Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1993(1) shall be amended in Part II of the Schedule as follows:

(1) in paragraph 1 by substituting for paragraph 1 the following new paragraph:

“1.   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, unless the society is one to which sub– paragraph (b) below applies;

(b) the society is a successor to two or more societies which have amalgamated and that society does not have a qualifying asset holding by reason only that it does not have any annual accounts as referred to in section 118(2) of the Act, provided that at least one society to which the amalgamated society is a successor had a qualifying asset holding immediately before the specified date referred to in section 93(3)(b) of the Act;

(c) the cessation of the availability of the relevant power to such a society as is referred to in sub–paragraph (a) or (b) above because that society no longer has a qualifying asset holding does not require the disposal of any property or rights.”;

(2) by substituting for paragraph 3 the following new paragraph:

“3.   In this Schedule “a single tier organisation” is a body which does not have the capacity to hold 5% or more of the issued shares or corresponding membership rights in another body corporate, and all the shares or corresponding membership rights which the body holds in another body corporate have been obtained by the body in the course of carrying on mortgage indemnity insurance business.”;

(3) in paragraph 4(1)–

(a) in the definition of advance by inserting after the words “means any advance” the words “, or any loan corresponding to an advance,”;

(b) by inserting after “society” in the definition of “mortgagor” the words “or any subsidiary of the society,”;

(4) by substituting for paragraph 4(2) the following new sub–paragraph–

“(2) In this Schedule, “carrying on mortgage indemnity insurance business” means entering into an agreement (“the agreement”) with a society or any subsidiary of a society, whereby the body, subject to the conditions specified below, agrees to indemnify the society, or, as the case may be, the subsidiary, against loss incurred by the society, or, as the case may be, the subsidiary, but, in respect of a subsidiary, only for loss incurred while that body corporate is a subsidiary of a society.”;

(5) in paragraph 4(3)(ii)–

(a) by inserting after the words “the society” the words “, or, as the case may be, the subsidiary,”, and

(b) by substituting for the words “in respect of which that advance has been made” the words “which was to secure that advance at the time that advance was made.”.

(1)

S.I. 1993/989, (designating mortgage indemnity insurance bodies).