86 Agreements to indemnify building societies: Scotland.E+W+S
(1)The Corporation may, with the approval of the Secretary of State, enter into an agreement with a building society [F1or recognised body] under which the Corporation binds itself to indemnify the building society [F1or recognised body] in respect of—
(a)the whole or part of any outstanding indebtedness of a borrower; and
(b)loss or expense to the building society [F1or recognised body] resulting from the failure of the borrower duly to perform any obligation imposed on him by [F2a] heritable security.
(2)The agreement may also, where the borrower is made party to it, enable or require the Corporation in specified circumstances to take an assignation of the rights and liabilities of the building society [F3or recognised body] under the heritable security.
(3)Approval of the Secretary of State under subsection (1) may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month’s notice.
(4)Before issuing any general approval under subsection (1) the Secretary of State shall consult with such bodies as appear to him to be representative of islands and district councils, and of building societies, and also with the Corporation and with the [F4Building Societies Commission].
(5)Section 16(3) and (5) of the M1Restrictive Trade Practices Act 1976 (recommendations by services supply associations to members) does not apply to recommendations made to building societies [F5or recognised bodies] about the making of agreements under this section provided that the recommendations are made with the approval of the Secretary of State.
[F6(6)In this section, “recognised body” means a body designated, or of a class or description designated, in an order made under this subsection by statutory instrument by the Secretary of State with the consent of the Treasury.
(7)Before making an order under subsection (6) above varying or revoking an order previously so made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.]
Textual Amendments
F1Words inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(a)(i)
F2 “a” substituted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(a)(ii)
F3Words inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(b)
F4Words substituted by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 120(1), Sch. 18 Pt. I para. 19(3)
F5Words inserted by Housing (Scotland) Act 1986 (c. 65, SIF 61), s. 25(1), Sch. 2 para. 4(6)(c)
Marginal Citations