Building Societies Act 1986 (c. 53)

Part XI U.K. Miscellaneous and Supplementary and Conveyancing Services

Miscellaneous and supplementary U.K.

119 Interpretation. U.K.

(1) In this Act, except where the context otherwise requires—

• “adopt” and “adopted”, in relation to powers, and “adoptable powers” have the meaning given by paragraph 1 of Schedule 2 of this Act;

• “advance secured on land” and “advance fully secured on land” have the meanings given by section 10(1) and (11) and references to class 1 or class 2 advances are to be construed in accordance with sections 11 and 12;

• [F1 “advance secured on third party land” has the meaning given by section 10(4A);]

• “the annual accounts” has the meaning given by section 72(10);

• “the annual business statement” has the meaning given by section 74(1);

• “the applicable winding up legislation” and “the companies winding up legislation” have the meanings given by section 90;

• “associated body" and, in that context, “associated” and “linked by resolution”, in relation to a building society, have the meanings given by section 18(9) and (17) respectively;

• “authorisation” means authorisation under section 9 or, on renewal, under section 41 or reauthorisation under section 44 or authorisation by virtue of section 93(6) or paragraph 6(1) of Schedule 20 to this Act and “authorised” in relation to any time, means having an authorisation current at that time;

• “borrowing members’ resolution” and “borrowing member” have the meanings given by paragraph 29 of Schedule 2 to this Act;

• “building society” means a building society incorporated (or deemed to be incorporated) under this Act;

• “the central office” means the central office of the registry of friendly societies except in relation to Scotland in relation to which it means the assistant registrar of friendly societies for Scotland;

• “the Chief Registrar” means the Chief Registrar of Friendly Societies;

• “the Commission” means the Building Societies Commission established by section 1;

• “the court”, in relation to a building society, except in relation to the winding up of the society, means—

(a) in the case of a society whose principal office is situated in England and Wales, the county court for the district in which the office is situated;

(b) in the case of a society whose principal office is situated in Scotland, the sheriff in whose jurisdiction the office is situated;

(c) in the case of a society whose principal office is situated in Northern Ireland, the county court for the division in which the office is situated;

and, in relation to the winding up of a building society, means the court which has jurisdiction under the applicable winding up legislation to wind up the society;

• “the criteria of prudent management” means the criteria set out in section 45(3);

• “deferred shares” means shares of a class defined by order of the Commission, with the consent of the Treasury, in a statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament;

• “deposit” includes loan, and cognate expressions shall be construed accordingly;

• “dispose”, in relation to any property, includes the granting of any interest in or right over it;

• “executive”, in relation to a director, means a person who holds office as a director and also as chief executive, secretary or manager;

• “financial year” is to be construed in accordance with section 117;

• “heritable security” means a security capable of being constituted over any land by disposition or assignation of that interest in security of any debt and of being recorded in the Register of Sasines or, as the case may be, in the Land Register of Scotland and includes a security constituted by a standard security and any other charge enforceable in the same manner as a standard security;

• “Investor Protection Board” means the Board established by section 24;

• “manager”, in relation to a building society, means a person (other than the chief executive) employed by the society who, under the immediate authority of a director or the chief executive of the society exercises managerial functions or is responsible for maintaining accounts or other records of the society;

• “member”, in relation to a building society, includes any person who for the time being holds a share (whether advanced or not) in the society;

• “memorandum” has the meaning given by paragraph 1 of Schedule 2 to the Act;

• “mobile home loan” means a loan under section 15;

• “mortgage” includes charge;

• “mortgage debt”, in relation to an advance secured on land, has the meaning given by section 11(14) and, in relation to a loan so secured, has a corresponding meaning;

• “notice” means written notice and “notice to" a person means notice given to that person, and “notify” shall be construed accordingly;

• “officer”, in relation to a building society, means any director, chief executive, secretary or manager of the society; and, in relation to any offence, “officer” also includes any person who purports to act as an officer of the society; and in relation to any other body corporate means the corresponding officers of that body;

• “officially notified”, in relation to the appointment or address of a director or the chief executive of a building society, means respectively notified to, and the last address notified to, the central office under section 61(13) or 59(6), as the case may be;

• “prescribed”, in relation to fees, means prescribed under section 2 or 116 according as the fees are payable to the Commission or, in the case of functions of the central office, to the Chief Registrar;

• “the public file”, in relation to a building society, means the file relating to the society which the central office is required to maintain under section 106;

• “qualifying asset holding”, in relation to a building society, shall be construed in accordance with section 118;

• “registered address”, in relation to a member of a building society, has the meaning given by paragraph 13 of Schedule 2 to this Act;

• “the repealed enactments” means the M1 Building Societies Act 1962 or the M2 Building Societies Act 1874 or, in relation to Northern Ireland, the M3 Building Societies Act (Northern Ireland) 1967;

• “share” includes stock;

• “shareholder and depositor” includes a potential shareholder or depositor;

• “special resolution” has the meaning given by paragraph 27 of Schedule 2 to this Act;

• “subsidiary” [F2 has the meaning given by section 736 of] the M4 Companies Act 1985;

• [F3 “Subsidiary undertaking” shall be construed in accordance with the provisions of section 258 of the Companies Act 1985, read in conjunction with sections 259 and 260 of, and Schedule 10A to, that Act;]

• “summary financial statement” has the meaning given by section 76(1);

• “total commercial assets”, in relation to a building society, means the aggregate of its class 1 assets, its class 2 assets and its class 3 assets.

(2) In relation to advances secured on land in Scotland, “mortgage” means a heritable security, “mortgagor” and “mortgagee” mean respectively the debtor and creditor in a heritable security and connected expressions shall be construed accordingly.

[F4 (2A) In this Act the following expressions, namely—

another member State;

connected UK authority;

ecu [F5 (except in Part IV)]];

the First Council Directive;

listed activity;

own funds;

recognised self-regulating organisation;

relevant supervisory authority;

the Second Council Directive;

supervisory authority,

have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.

(3) For the purposes of any provision of this Act referring to the value of a person’s shareholding in a building society—

(a) the value of a person’s shares shall be taken as the amount standing to his credit in respect of payments made by him on the shares and interest credited to him by way of capitalisation; and

(b) shares held by a person to whom, as the holder of the share, the society has made an advance, shall be disregarded.

(4) The value in sterling of any transaction effected by or with a building society in another currency shall be determined for any purpose of this Act in accordance with directions given by the Commission under this subsection.

(5) The foregoing provisions of this Act shall be construed and have effect as if section 124 and Schedule 21 were contained in another Act and references in those provisions to this Act shall be construed accordingly.

Textual Amendments

F1 Words in s. 119(1) inserted (3.1.1995) by 1994 c. 40, ss. 39, 82(2)(e), Sch. 11 para. 7(6)

F2 Words substituted by virtue of Companies Act 1989 (c. 40, SIF 27), s. 145(4), Sch. 18 para. 45

F3 Definition in s. 119(1) added (1.1.1993) by S.I. 1991/1729, art. 5

F4 S. 119(2A) inserted (1. 1. 1993) by S.I. 1992/3218, reg. 81

F5 Words in s. 119(2A) inserted (1.7.1995) by S.I. 1995/1442, reg. 52(1) (with transitory provisions in reg. 54(2))

Modifications etc. (not altering text)

C1 Definition of “total commercial assets" modified by S.I. 1986/2168, art. 4(2)(a)(ii)(3)

Marginal Citations

M1 1962 c. 37.

M2 1874 c. 42.

M3 1967 c. 31 (N.I.).

M4 1985 c. 6.