1995 No. 3233
The Deregulation (Building Societies) Order 1995
Made
Coming into force
article 5
remainder
Whereas:
the Treasury are of the opinion that certain provisions of the Buildings Societies Act 19861 impose burdens affecting building societies in the carrying on of business and that by amending or repealing the provisions concerned and by making certain other provision it is possible to remove or reduce the burdens, without removing any necessary protection;
the Treasury have consulted such organisations as appear to them to be representative of interests substantially affected by their proposals and such other persons as they considered appropriate;
it appears to the Treasury that it is appropriate, following that consultation, to proceed with the making of this Order;
a document setting out the Treasury’s proposals has been laid before Parliament in accordance with section 3 of the Deregulation and Contracting Out Act 19942 and the period for Parliamentary consideration under section 4 of that Act has expired;
the Treasury have had regard to the representations made during that period;
a draft of this Order has been laid before Parliament with a statement giving details of such representations and the change to the Treasury’s proposals in the light of those representations; and
a draft of this Order has been approved by resolution of each House of Parliament.
Now, therefore, the Treasury, in exercise of the power conferred on them by section 1 of the 1994 Act, hereby make the following Order:
Title and commencement1
This Order may be cited as the Deregulation (Building Societies) Order 1995 and shall come into force one month after the day on which it is made except for article 5 which shall come into force six months after that day.
Interpretation2
In this Order “the 1986 Act” means the Building Societies Act 1986.
Power of building societies to hold land overseas3
In section 6(4) of the 1986 Act (power of a building society to hold land etc. overseas for purposes of its business) for the words “subsections (1) and (2)” there shall be substituted the words “subsections (1), (2) and (3)”.
Limit on non-retail funds and borrowing4
1
In section 7(3) of the 1986 Act3 (limit on non-retail funds and borrowing) for the words “subsection (14)” there shall be substituted the words “subsections (13A) and (14)” and for the words “the prescribed percentage” there shall be substituted the words “50 per cent.”.
2
After section 7(13) of the 1986 Act there shall be inserted the following subsection—
13A
In making any calculation for the purposes of subsection (3) above, there shall be disregarded any liability in respect of anything which, in accordance with any order made under section 45(5), is to be aggregated with reserves for the purpose of the first criterion in section 45(3)4.
3
Section 7(15) of the 1986 Act (prescribed percentage limit) and the word “(15)” in section 7(17) of that Act are hereby repealed.
Obligation to meet liabilities of associated bodies5
1
Section 22 of the 1986 Act (obligation to meet liabilities of associated bodies) is hereby repealed.
2
Notwithstanding its repeal by paragraph (1) above, section 22 of the 1986 Act shall continue to have effect in relation to any liability which—
a
is incurred before the day on which this article comes into force, or
b
arises out of an obligation entered into before that day, or
c
in the case of a liability in tort or delict, is referable to an act or omission occurring before that day.
Auditors' reports6
In section 78(2) (auditors' report at annual general meeting)—
a
the words “be read before the building society at the annual general meeting and shall” are hereby repealed, and
b
after “be open to inspection by any member” there shall be inserted “at the annual general meeting of the building society”.
Notification of sale of mortgaged property7
After paragraph 1(1) of Schedule 4 to the 1986 Act there shall be inserted—
1A
Sub-paragraph (1)(b) above shall not apply where the person selling the land has reasonable cause to believe that communications sent to the mortgagor at his last-known address are unlikely to be received by him.
(This note is not part of the Order)