The Building Societies (Liquid Asset) Regulations 1991

Citation and commencement

1.  These Regulations maybe cited as the Building Societies (Liquid Asset) Regulations 1991 and shall come into force on 16th December 1991.

Interpretation

2.  In these Regulations—

“the Act” means the Building Societies Act 1986;

“liquid asset” means an asset of a character which societies may hold under section 21 (liquid assets) of the Act for the purpose of meeting their liabilities as they arise;

“predecessor” means, in relation to an existing society—

(a)

a society which has transferred its. engagements to that existing society, or

(b)

a society which—

(i)

has amalgamated with one or more societies under section 93 (amalgamations) of the Act so as to establish that existing society as their successor, or

(ii)

has united with one or more societies under section 18 (unions) of the Building Societies Act 1962(1) or of the Building Societies Act (Northern Ireland) 1967(2) so as to become that existing society; and

“society” means a building society.

Prescription of liquid assets

3.—(1) Each description of assets which—

(a) comes within a provision of Part I of the Schedule hereto, and

(b) where a provision of Part 11 of the Schedule hereto applies to it, conforms with the requirements of that provision,

is prescribed as a description of liquid assets.

(2) The definitions in Part III of the Schedule hereto have effect in respect of the interpretation of that Schedule.

Revocation

4.  The Building Societies (Liquid Asset) Regulations 1987(3), The Building Societies (Liquid Asset) (Amendment) Regulations 1989(4), and The Building Societies (Liquid Asset) (Amendment) Regulations 1991(5) are hereby revoked.

Transitional provision

5.—(1) This regulation applies to assets of a society which are not liquid assets under these Regulations but are assets which—

(a) (i) were previously liquid assets and have ceased to be so, and

(ii) have been held by the society continuously since a date before the date on which they ceased to be liquid assets, or

(b) (i) were treated, by virtue of article 7 (liquid assets) of the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986(6),as if they were prescribed in liquid asset Regulations, and

(ii) have been held by the society continuously since a date before the date on which The Building Societies (Liquid Asset) Regulations 1987 came into force.

(2) A society which so holds assets to which this regulation applies shall not lose its power to continue to hold those assets.

(3) In this regulation a society is treated as including any predecessor of the society.

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

L.S.

Norman Dignance

Secretary to the Commission

1st November 1991.

We consent to this Order

Gregory Knight

Irvine Patnick

Two of the Lords Commissioners of Her Majesty’s Treasury

11th November 1991