[F19BRestriction on creation of floating charges.U.K.
(1)A building society shall not create a floating charge on the whole or part of its undertaking or property [F2unless it complies with the requirements in subsection (1A)] .
[F3(1A)The requirements are that the floating charge—
(a)is created in favour of a participant in a system, and
(b)is created for the purpose of securing any rights and obligations that may arise in connection with participation in that system.]
(2)A floating charge created in contravention of this section shall be void.]
[F4(3)In this section “participant” and “system” have the meaning given by Article 2 of Directive 98/26/EC of the European Parliament and of the Council of 19th May 1998 on settlement finality in payment and securities settlement systems (as amended by Directives 2009/44/EC and 2010/78/EU).]
Textual Amendments
F1S. 9B inserted (9.6.1997) by 1997 c. 32, s. 11; S.I. 1997/1427, art. 2
F2Words in s. 9B(1) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 55(2), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F3S. 9B(1A) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 55(3), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F4S. 9B(3) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 55(4), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Modifications etc. (not altering text)
C1S. 9B(1) excluded (7.4.2010) by The Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188), arts. 1(2), 7(1)
C2S. 9B(2) excluded (7.4.2010) by The Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188), arts. 1(2), 7(2)