# The Building Societies (Designated Capital Resources) Order 1988, Article 5: Capital resources which may be aggregated with reserves


(1) Where the repayment of any subordinated debt is due to be completed within five years, only the applicable portion of the principal amount outstanding shall be aggregated under article 3 above.
(2) For the purposes of paragraph (1) above, the applicable portion is a fraction of the amount outstanding corresponding to the number of days remaining in the term of the loan expressed as a fraction of the number of days in the last five years of the term.
(3) The total amount of subordinated debt aggregated with a society’s reserves under article 3 above shall not exceed 50 per cent. of the amount of the society’s reserves, as shown in the society’s latest balance sheet, and for this purpose“reserves” means—
(a) where there is no revaluation reserve shown therein, the total reserves, and
(b) where a revaluation reserve is shown therein, the total reserves less that revaluation reserve.

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Source: https://www.legislation.gov.uk/uksi/1988/22/article/5 (the official version)
Page: https://openlegislation.uk/building-societies-designated-capital-resources-order-1988/article-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.