Article 8 Disregard of assets of societies for the purposes of section 20

In determining the purposes of section 20 the asset holding of a building society, subject to paragraphs (2) and (3), there shall be disregarded those commercial assets that are represented by a liability of any relevant body with which the society is associated.

The aggregate amount of assets of a society disregarded under paragraph (1) by virtue of being represented by a liability of a relevant body with which the society is associated (“relevant disregardable assets”) shall not exceed the aggregate amount of assets of the relevant body attributed to the society under rule 7(1) (“relevant attributable assets”).

If a society’s relevant disregardable assets comprise assets of both classes 2 and 3 and are (in aggregate) greater than the relevant attributable assets the society’s class 3 assets shall be disregarded under this rule in priority to its class 2 assets.