The Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 2004

Securitised assets of a subsidiary undertaking and the funding limit U.K.

4.—(1) Section 7(2)(1) of the 1986 Act is modified in its application to liabilities of subsidiary undertakings of a building society as follows.

(2) Where an amount is included in the total liabilities of any subsidiary undertaking that are consolidated in the society’s accounts, in respect of the non-returnable proceeds raised pursuant to a securitisation transaction, that amount shall be disregarded for the purposes of that section if—

(a) the assets securitised by the transaction are loans; and

(b) the terms of the securitisation transaction meet the conditions in article 3(5).

Commencement Information

I1 Art. 4 in force at 1.1.2005, see art. 1(2)

(1)

Section 7 was substituted by the Building Societies Act 1997 and amended by S.I. 2001/2617.