Building Societies Act 1997

14 (1) In subsection (1) of section 43 of the 1986 Act (revocation of authorisation), for the word “or” immediately following paragraph (c) there shall be substituted the following paragraphs—

“(cc) the Commission is satisfied that a direction under section 42B(1) has not been complied with by the society;

(cd) it appears to the Commission that—

(i) a composition or arrangement with creditors has been made in respect of the society;

(ii) a receiver or manager of the society’s undertaking has been appointed;

(iii) possession has been taken, by or on behalf of the holders of any debenture secured by a charge, of any property of the society; or

(iv) an administration order has been made in relation to the society under section 8 of the [1986 c. 45.] Insolvency Act 1986; or”.

(2) For subsection (7) of that section there shall be substituted the following subsections—

“(7) If, when a society’s authorisation is revoked, a member is under an obligation to make payments to the society—

(a) which represent instalments of the amount due in respect of a share in the society; and

(b) which, by virtue of section 9(1), the society is prohibited from accepting,

the obligation shall (subject to anything in the rules of the society or any agreement between the society and the member) be suspended in respect of each instalment for the period during which no authorisation is in force.

(7A) If, in a case falling within subsection (7) above, reauthorisation is granted—

(a) the first suspended instalment shall be payable on the first payment day after reauthorisation is granted; and

(b) a subsequent instalment shall be payable on each payment day after that until the amount due in respect of the share is paid in full.”