This Order empowers building societies with commercial assets of at least £100 million to make advances on the security of land in Guernsey and Alderney, and provides for the classification of those advances within the asset classification provisions of the Building Societies Act 1986. By virtue of article 5 of this Order, the power to make such an advance does not require adoption by a special resolution of a society in order to be exercisable by it.

This Order provides (article 7 and Schedule 2) for the general treatment of those advances under the Building Societies Act 1986 to correspond to the treatment, under the Act, of advances secured on land in the United Kingdom.