# Building Societies Act 1986, Paragraph 12

Extent: E+W+S+N.I.

(1) Section 107 (distribution of property) of the Act does not apply; and the following applies in its place.
(2) Subject to the provisions of Part IV relating to preferential payments, a building society’s property in a voluntary winding up shall be applied in satisfaction of the society’s liabilities to creditors . . . pari passu and, subject to that application, in accordance with the rules of the society.
(3) In sub-paragraph (2) the reference to the society’s liabilities to creditors includes a reference to the society’s liabilities to shareholding members of the society in respect of deposits which are not relevant deposits.

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Source: https://www.legislation.gov.uk/ukpga/1986/53/schedule/15/paragraph/12 (the official version)
Page: https://openlegislation.uk/building-societies-act-1986/schedule-15/paragraph-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.