The Building Societies (Non-Retail Funds and Deposits) Order 1990

Article 4

SCHEDULE

PART I SECTION 7(4) OF THE BUILDING SOCIETIES ACT 1986, AS AMENDED BY THIS ORDER

(4) For the purposes of subsection (3) above, a building society’s liabilities in respect of its non-retail funds and deposits are, subject to subsections (5) and (9) below, its liabilities in respect of the principal of and interest payable on or under—

(a) transferable bearer instruments

(aa) transferable non-bearer instruments

(b) deleted

(bb) sums deposited otherwise than in excepting circumstances or in furtherance of a savings scheme 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));

(c) shares in the society held by, or by a trustee for, and (to the extent the liabilities do not fall within (a), (aa), or (bb) above) sums deposited with the society by, or by a trustee for—

(i) any body corporate, otherwise than in excepting circumstances,

(ii) a friendly society registered under the Friendly Societies Act 1974((2)) or the Friendly Societies Act (Northern Ireland) 1970((3)), otherwise than in furtherance of a savings scheme,

(iii) a trade union (within the meaning of the Trade Union and Labour Relations Act 1974((4))).

(d) shares in the society (to the extent the liabilities do not fall within (c) above) held by, and (to the extent the liabilities do not fall within (a), (aa), (bb) or (c) above) sums deposited with the society by—

(i) a body of persons or trust established for charitable purposes only,

(ii) the administrator of an approved retirement benefits scheme,

(iii) the manager or trustee of an appropriate personal pension scheme, or

(iv) the plan manager of a personal equity plan.

PART II SECTION 7(19) OF THE BUILDING SOCIETIES ACT 1986, AS AMENDED BY THIS ORDER

(19) In this section—

“appropriate personal pension scheme” means a personal pension scheme within the meaning of the Social Security Act 1986((5)) in respect of which an appropriate scheme certificate under section 2 thereof (appropriate schemes) is for the time being in force;

“excepting circumstances” means circumstances in which shares or rights of a depositor—

(i)

are held by the holder as nominee on behalf only of an individual, a Scottish partnership, or a combination of individuals, of such partnerships, or of both;

(ii)

are subject to a relevant trust in the income of which no person who is neither an individual nor a Scottish partnership has any interest; or

(iii)

were held by an individual as beneficial owner at the time of his death (or represent investments so held or dividends or interest thereon) and the holder is acting as personal representative of that individual;

“intermediary” means—

(i)

as regards the interpretation of a savings scheme in connection with paragraph (bb) of subsection (4), an institution which is within the ambit of that paragraph, or

(ii)

as regards the interpretation of a savings scheme in connection with subparagraph (ii) of paragraph (c) of subsection (4), a friendly society which is within the ambit of that subparagraph;

“personal equity plan” means a plan the operation of which is subject to conditions set out in the regulations for time being in force under Schedule 8 to the Finance Act 1986((6)) (personal equity plans);

“relevant trust” means a trust which is neither a trust established for charitable purposes only nor a trust of shares held or sums deposited by—

(i)

the administrator of an approved retirement benefits scheme,

(ii)

the manager or trustee of an appropriate personal pension scheme, or

(iii)

the plan manager of a personal equity plan;

“retirement benefits scheme” means a retirement benefits scheme within the meaning of Chapter II of Part II of the Finance Act 1970((7)) (occupational pension schemes) and “approved” means approved for the time being by the Commissioners of Inland Revenue for the purposes of that chapter;

“savings scheme” means a scheme under which—

(a)

shares in or rights of a depositor with the society represent sums of money placed with an intermediary by an individual under a contract under which—

(i)

those sums were to be invested by the intermediary in shares of or deposited with the society, and no other society; and

(ii)

those sums were not to be withdrawn from the society by the intermediary except either—

(aa)

on maturity of the contract by reason of the death of the individual, or the effluxion of a period of time specified in the contract, or

(bb)

at the written request of the individual or any assignee of that individual’s rights under the contract and within one month of the receipt by the intermediary of such request, or within a maximum of six months of such receipt if under the contract the intermediary has the right to defer for that period the withdrawal of funds placed with the intermediary for investment in or deposit with the society, or

(cc)

where the intermediary has the right to deduct an amount from the investment with the society to cover charges specified in the contract and amounts surplus to the requirements of the contract;

(b)

the intermediary is obliged to produce, when requested to do so by the society, and on a date nominated by the society,

(i)

a statement of the total sums invested or deposited with that society by the intermediary in furtherance of contracts made under the terms of the scheme set out in subparagraphs (i) and (ii) of paragraph (a) above, together with a certificate signed by the auditor of the intermediary confirming that the statement constitutes a true account;

(ii)

any written request mentioned in subparagraph (ii) of paragraph (a) above;

“transferable bearer instrument” means an instrument which embodies a right, transferable by delivery of the instrument, to receive an amount referable to a deposit with the society; and

“transferable non-bearer instrument” means an instrument which embodies a right—

(i)

which may, under the terms of the instrument, be held by any person, or by any person other than a person of a description specified in the instrument,

(ii)

express provision for the transfer of which is included in the instrument, and

(iii)

the transfer of which, under the terms of the instrument, does not require the consent of any person,

to receive an amount referable to a deposit with the society.

(1)

1987 c. 22.

(2)

1974 c. 46.

(3)

1970 c. 31 (N.I.).

(4)

1974 c. 52.

(5)

1986 c. 50.

(6)

1986 c. 41.

(7)

1970 c. 24.