Article 2 Interpretation

In these Rules—

• “the Act” means the Building Societies Act 1986;

• “adequately supported by a report of the auditors” has the meaning given by rule 13;

• “associated body” means an associated body of a society and as such has the same meaning as in section 18(17) of the Act;

• “board” means board of directors;

• “debts secured on land” means debts which are secured by—

  1. (a)

     a mortgage of a legal estate in land in England and Wales or Northern Ireland;

  2. (b)

     an equitable interest in land of a description and created in circumstances prescribed under section 10(6) of the Act;

  3. (c)

     a heritable security over land in Scotland; or

  4. (d)

     a form of security on land in a country or territory for the time being designated by order under section 14 (power to make advances secured on land overseas) of the Act, which is a form specified in the order or orders designating that country or territory;

• “deposit liabilities” means liabilities in respect of deposits and, in relation to the deposit liabilities of an associated body, “relevant deposit liabilities” means deposit liabilities, in respect of principal and interest payable thereon, which are neither represented by assets of the society nor incurred in the course of providing a service for the time being specified in Part I of Schedule 8 (powers to provide services) to the Act other than a banking service undertaken as such;

• “mortgage debts” means debts secured on land, and the amount of a mortgage debt at any time is the total amount outstanding at that time in respect of—

  1. (a)

     the principal of the loan which gave rise to the debt;

  2. (b)

     interest on that loan; and

  3. (c)

     any other sum which the debtor is obliged to pay to the lender under the terms of that loan;

• “non-retail liabilities” in relation to a society means liabilities in respect of its non-retail funds and deposits;

• “retail liabilities” in relation to a society means liabilities, other than non-retail liabilities, in respect of shares in or money deposited with it;

• “signed by the board” means signed by two directors on behalf of the board; and

• “society” means a building society.