SCHEDULES

SCHEDULE 7 Other amendments of 1986 Act

Mergers: supplementary provisions

66

(1)

In paragraph 1 of Schedule 16 to the 1986 Act (mergers: supplementary provisions)—

(a)

in sub-paragraph (4)(e), for the words “class 1 or 2 advances made by the building society” there shall be substituted the words “ loans made by the building society which are secured on land ”; and

(b)

sub-paragraph (5) shall cease to have effect.

(2)

For sub-paragraph (2) of paragraph 4 of that Schedule there shall be substituted the following sub-paragraphs—

“(2)

In any case where merger resolutions are to be moved at any meeting of a building society, every notice of the meeting shall have included in or with it—

(a)

a merger statement with respect to any merger proposal, other than a proposal of which notice has already been given under this paragraph, received by it more than 42 days before the date of the meeting; and

(b)

a transfer proposal notification with respect to any transfer proposal so received by it.

(3)

In this paragraph and paragraph 5 below—

transfer proposal” has the same meaning as in Part IA of Schedule 17;

transfer proposal notification” means a transfer proposal notification (within the meaning of that Part) required to be sent to members by paragraph 5B(1) of that Schedule.”

(3)

In sub-paragraph (1) of paragraph 5 of that Schedule—

(a)

after the words “merger statement” there shall be inserted the words “ or transfer proposal notification ”; and

(b)

after the words “the statement” there shall be inserted the words “ or notification ”.

(4)

In sub-paragraph (2) of that paragraph, after the words “merger statement” there shall be inserted the words “ or transfer proposal notification ”.