1987 No. 1500
The Building Societies (Prescribed Contracts) (Amendment) Order 1987
Made
Laid before Parliament
Coming into force
The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by section 23(2) of the Building Societies Act 19861, and of all other powers enabling it in that behalf, hereby makes the following Order:
Citation and commencement1
This Order may be cited as the Building Societies (Prescribed Contracts) (Amendment) Order 1987 and shall come into force on 1st October 1987.
Interpretation2
In this Order “the 1986 Order” means the Building Societies (Prescribed Contracts) Order 19862.
Amendment of 1986 Order3
The 1986 Order shall be amended as follows —
a
in article 2 (interpretation), in the definition of “participant”, the words “(other than a guarantor)” shall be inserted after the word “contract”;
b
in article 3, paragraph (3) (which limits participants) shall be replaced by the following paragraph —
3
No prescribed contract may be effected by a society save where the obligations of the participant thereunder fall to be performed by —
a
a person some of whose liabilities societies, or societies of a particular description, are empowered for the time being, under section 21 (liquid assets) of the Building Societies Act 1986, to hold as assets of an authorised character, or
b
a person performance of whose obligations under the contract is guaranteed by a person who comes within subparagraph (a) above.
Transitional Provision4
1
Nothing in this Order shall be taken to invalidate any contract effected by a society in the previous period in accordance with the 1986 Order as a prescribed contract.
2
For the purposes of this article the previous period is the period which —
a
began on the day on which the 1986 Order came into force, and
b
ended on the day before the day on which this Order came into force.
In witness thereof the common seal of the Building Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 13th August 1987.
We consent to this Order
(This note is not part of the Order)