The Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limit Calculation) Order 2007

Modification of the funding limit calculation

3.—(1) Subsections (2) and (3) of section 7 of the Building Societies Act 1986 (the funding limit) are modified as follows in their application to the liabilities of EEA subsidiary undertakings of a building society.

(2) For the purposes of section 7(2), there shall be disregarded so much of the aggregate of the principal value of, and interest accrued on, sums deposited with any EEA subsidiary undertaking of the society by individuals acting otherwise than as bare trustees for bodies corporate or for persons who include bodies corporate as does not exceed the limit in paragraph (3).

(3) In respect of any day by reference to which the value of X falls to be calculated for the purposes of section 7(1) in relation to the society, that limit is 10 per cent. of the amount which would, apart from the modification required by this article, be the value of X on that day.

(4) Where an individual declares that he is depositing a sum with an EEA subsidiary undertaking of a building society otherwise than as a bare trustee for a body corporate or for persons who include a body corporate, he shall, unless the contrary is shown, be conclusively presumed for the purposes of section 7 to have deposited the sum otherwise than as such a trustee.

(5) In this article, “EEA subsidiary undertaking” means a subsidiary undertaking that is incorporated or otherwise established in another EEA State, the Channel Islands, the Isle of Man or Gibraltar.