(This note is not part of the Order)
This Order extends the forms of property which building societies have power to acquire, hold and dispose of as class 3 assets (assets not secured on land).
The additional forms of property are (a) debts due from bodies corporate and unincorporate, and (b) shares and equivalent rights acquired in connection with loans either at the time the loan is advanced (up to a maximum value of 5% of the loan) or following a default or compromise.
The Order also amends section 18(8) of the Building Societies Act 1986 so as to provide that the restriction in section 18(6) does not apply to investment permitted by this Order and amends the Building Societies (Commercial Assets and Services) Order 1988 by substituting a definition of “leasable chattels” which is not restricted to individuals. It makes certain other technical amendments to that Order and to the Building Societies (Limited Credit Facilities) Order 1987 and the Building Societies (Money Transmission Services) Order 1989.
A review of the cost of compliance with this Order has been undertaken and the resulting compliance cost assessment may be purchased from H.M. Treasury, Parliament Street, London SW1P 3AG.