The Building Societies (Banking Institutions) Order 1987

Statutory Instruments

1987 No. 1670

BUILDING SOCIETIES

The Building Societies (Banking Institutions) Order 1987

Made

21st September 1987

Laid before Parliament

23rd September 1987

Coming into force

1st October 1987

The Building Societies Commission, in exercise of the powers conferred on it by sections 7(9), 15(2) and 34(2) of the Building Societies Act 1986(1) and of all other powers enabling it in that behalf, and with the consent (except in so far as this Order is made under section 34(2) of that Act) of the Treasury, hereby makes the following Order:

Citation and commencement

1.  This Order shall be cited as the Building Societies (Banking Institutions) Order 1987 and shall come into force on 1st October 1987.

Amendment of provisions of the Building Societies Act 1986

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(2);”; 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”.

Amendment of the Building Societies (Mobile Home Loans) Order 1986

3.  The Building Societies (Mobile Home Loans) Order 1986(3) shall be amended as follows:

(a) in article 2 (interpretation) —

(i) after the definition of “the Act” there shall be inserted the following definition:

““authorised institution” means an institution which is an authorised institution for the purposes of the Banking Act 1987;”; and

(ii) the definitions of “licensed deposit taker” and “recognised bank” and the word “and” immediately before the latter definition shall be omitted; and

(b) in article 3 (security for mobile home loans) —

(i) in paragraph (c)(ii), for the words “society, recognised bank or licensed deposit taker” there shall be substituted the words “society or authorised institution”; and

(ii) in paragraph (d), for the words “a recognised bank or licensed deposit taker” there shall be substituted the words “an authorised institution”.

In witness whereof the common seal of the Building Societies Commission is hereunto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 18th September 1987.

L.S.

Gerald Watson

Deputy Chairman of the Commission

We consent to this Order,

Michael Neubert

Tony Durant

Two of the Lords Commissioners of Her Majesty’s Treasury

21st September 1987

Explanatory Note

(This note is not part of the Order)

This Order amends provisions of legislation relating to building societies by replacing references to bodies which were recognised banks and licensed institutions under the Banking Act 1979 (c. 37) by references to authorised institutions under the Banking Act 1987 (which among other things gives deemed authorisation to those bodies).

(1)

1986 c. 53; section 7 was amended by S.I. 1987/378 and Schedule 8 was amended by S.I. 1987/172.

(2)

1987 c. 22.

(3)

S.I. 1986/1877.