SCHEDULE 4NOTES TO ANNUAL ACCOUNTS

Committee members' loans and transactionsI131

1

This paragraph applies, subject to subparagraph (5), in relation to:

a

loans from and other transactions and arrangements with the society described in section 65 of the Building Societies Act 19866 (as applied to friendly societies by paragraph 9 of Schedule 11 to the Act) (which restricts loans to and other transactions and arrangements with directors and persons connected with them), other than those to which section 65(5) and (6) of the Building Societies Act 1986 (as applied to friendly societies by paragraph 9 of Schedule 11 to the Act) applies; and

b

in the case of a group accounts society, loans from and other transactions and arrangements with a subsidiary of the society to which paragraph (a) would apply were the society rather than the subsidiary a party to them.

2

The notes to the annual accounts must contain a statement, in relation to such loans, transactions, and arrangements showing as follows:

a

the aggregate amounts outstanding under them at the end of the financial year; and

b

the numbers of persons for whom such loans, transactions and arrangements were made.

3

The notes to the annual accounts must, in relation to any loan or other transaction or arrangement subsisting during or at the end of the financial year, make the following disclosures:

a

where a copy of it or a memorandum of its terms is included in the register maintained under section 68 of the Building Societies Act 1986 (as applied to friendly societies by paragraph 9 of Schedule 11 to the Act, (which requires the maintenance of such a register), the existence of the register and the availability of requisite particulars from it for inspection shall be disclosed;

b

where it comes within subparagraph (1)(b), its particulars shall be disclosed unless it was one which would, had the subsidiaries of the society formed part of the society, have been expected from the obligations imposed by section 68 of the Building Societies Act 1986 (as applied to friendly societies by paragraph 9 of Schedule 11 to the Act).

4

Regulation 8(2)(b) does not apply to this paragraph.

5

This paragraph applies in relation to loans to, and other transactions and arrangements with, a person connected with a committee member of the society where the society (or in the case of a subsidiary incorporated in the United Kingdom, the subsidiary) has notice of the connection between that committee member and that person.