2. The Building Societies Act 1986 shall be amended as follows:
(a)in section 7(4) (which identifies non-retail funds and deposits), for paragraph (bb) there shall be substituted the following paragraph:
“(bb)sums deposited otherwise than in excepting circumstances with the society by, or by a trustee for, an institution which is —
(i)an authorised institution, for the purposes of, or
(ii)an overseas institution for the purposes of Part IV of,
the Banking Act 1987(1);”; and
(b)in Schedule 8 (services), in paragraph 7(a) of Part III, for the words “recognised bank or licensed institution” there shall be substituted the words “authorised institution”.