PART 7 Amendments of Schedule 15 to Building Societies Act 1986

General mode of application of the companies winding up legislation

32.—(1) Part 1 of Schedule 15 to the Building Societies Act 1986(1) (general mode of application) is amended as follows.

(2) After paragraph 1 insert—

“1A.   In this Schedule—

“deposit” means rights of the kind described in—

(a)

paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits); or

(b)

section 1(2)(b) of the Dormant Bank and Building Society Accounts Act 2008 (balances transferred under that Act to authorised reclaim fund); and

“relevant deposit” means—

(a)

an “eligible deposit” within the meaning given by paragraph 15C(1) of Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) or a deposit of the kind mentioned in paragraph 15BB of that Schedule(2); or

(b)

an “eligible deposit” within the meaning given by paragraph 21(1) of Schedule 4 to the Insolvency (Northern Ireland) Order 1989 (categories of preferential debts) or a deposit of the kind mentioned in paragraph 20 of that Schedule(3).”.

(3) In paragraph 3(2), after paragraph (aa) insert—

“(ab) a reference to the debts of a company includes a reference to sums due to shareholding members of a building society in respect of deposits;”.

(1)

1986 c. 53.

(2)

Paragraph 15BB is inserted into Schedule 6 to the Act by article 11 of this Order.

(3)

Paragraph 20 is inserted into Schedule 4 to the 1989 Order by article 23 of this Order.