Article 2 Interpretation

(1)

In these Rules–

(a)

“the Act” means the Building Societies Act 1986;

(b)

“attributable assets”, in relation to a body, means the aggregate of its class 1 assets, its class 2 assets and its class 3 assets, less the aggregate of its excluded assets, and for the purposes of classifying the assets of the body Part III of the Act (advances, loans and other assets) shall apply as it applies for the purposes of classifying the assets of a society;

(c)

“corresponding membership rights” has the meaning given by section 18(17);

(d)

“deposit liabilities”, in relation to a body, means liabilities in respect of the principal of, and interest payable on, money desposited with the body which are not–

(i)

excluded liabilities; or

(ii)

liabilities incurred in the course of providing a service for the time being specified in Part I of Schedule 8 to the Act (powers to provide services) other than a banking service;

(e)

“excluded assets”, in relation to a body, means commercial assets (namely class 1 assets, class 2 assets or class 3 assets) of the body which–

(i)

are represented by a liability of the society or another relevant body associated with the society; or

(ii)

if the body is an insurance company within the meaning of section 96 of the Insurance Companies Act 1982^f1, are assets representing the fund or funds maintained by the company under section 28(1)(b) of that Act in respect of its long term business;

(f)

“excluded liabilities”, in relation to a body, means liabilities of the appropriate kind (namely non–retail liabilities as defined in rule 3(2) or deposit liabilities as defined in (d) above) which are represented by assets of the society or another relevant body associated with the society;

(g)

“holds”, in relation to shares or corresponding membership rights, means holds directly or through another body (or bodies) corporate or partly directly and partly through another body (or bodies) corporate and other derivatives of “hold” shall be construed accordingly;

(h)

“relevant body”, in relation to a building society, means a body corporate in which the society holds shares or corresponding membership rights, where–

(i)

the body is a subsidiary undertaking of the society; or

(ii)

the relevant percentage of shares or corresponding membership rights held by the society, or by another relevant body associated with the society (for which purpose the definition of “the relevant percentage” in (j) below shall apply with the substitution of references to that other body for references to the society), or by the society and any such body, is 15% or more,

and in these Rules such a body is said to be “associated” with the society; and

(j)

“the relevant percentage”, in relation to a body associated with a building society, means the percentage of shares or corresponding membership rights held by the society in the body determined in accordance with section 838(4) to (10) of the Income and Corporation Taxes Act 1988^f2 with the substitution in that section of “shares or corresponding membership rights” for “ordinary share capital” and “holds” (and other derivatives of “hold” as appropriate) for “owns” (and other derivatives of “own”).

(2)

In these Rules, except where otherwise stated, a reference to a section is a reference to a section of the Act, a reference to a rule is a reference to a rule in these Rules and a reference in a rule to a paragraph is a reference to a paragraph of that rule.

Annotations

Footnotes

f1: 1982 c. 50.
f2: 1988 c. 1.