Article 3 Aggregation of liabilities

Subject to Rule 5 below, where a society has an associated body and that associated body has deposit liabilities, then—

(a)

in determining for the purposes of section 7(3) of the Act (limits on percentage of non-retail funds and deposits) the liabilities of the society—

(i)

those relevant deposit liabilities of the associated body which, were they liabilities of the society, would be non-retail liabilities of the society shall be attributed to the society as non-retail liabilities, and

(ii)

those relevant deposit liabilities of the associated body which, were they liabilities of the society, would be retail liabilities of the society shall be attributed to the society as retail liabilities,

(b)

in determining for the purposes of section 8(1) of the Act (limits on percentage of deposits) the liabilities of the society in respect of deposits, the relevant deposit liabilities of the associated body shall be attributed to the society as liabilities in respect of deposits, and

(c)

in making those determinations for the purposes of both section 7(3) and section 8(1) of the Act, liabilities of the society which are represented by assets of the associated body shall be disregarded to the extent that they are in amount equal to or less than the aggregate of—

(i)

deposit liabilities of the associated body attributed to the society under this Rule, and

(ii)

liabilities of the associated body which are represented by assets of the society.