{
  "url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-amendment-order-1989/schedule/paragraph-2",
  "json_url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-amendment-order-1989/schedule/paragraph-2.json",
  "legislation": "uksi/1989/215",
  "legislation_title": "The Building Societies (Designation of Qualifying Bodies) (Amendment) Order 1989",
  "legislation_url": "https://openlegislation.uk/building-societies-designation-of-qualifying-bodies-amendment-order-1989",
  "path": "schedule/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": null,
  "text": "In Part II of the Schedule, after paragraph 6 (meaning of business percentage certification condition for estate agency vehicles) there shall be inserted the following heading and paragraph–\n“Meaning of mortgage business certification condition for appropriate mortgage companies\n6A (1) In this Schedule “the mortgage business certification condition for appropriate mortgage companies” means a condition to the effect that where a society holds shares in an appropriate mortgage company–\n(a) the society shall for each financial year of the company ending more than 18 months after the acquisition of such shares seek to obtain within four months after the end of that year a certificate signed by a director of the company stating that throughout that year the company complied with the determined requirements, and\n(b) if no such certificate is so obtained by the society for two successive financial years of the appropriate mortgage company, the society shall dispose of its shares in that company as soon as it is conveniently practicable to do so without undue loss.\n(2) In subparagraph (1) above “the determined requirements” means the following requirements–\n(a) a requirement that the company shall maintain or make arrangements for the maintenance of a system for ensuring the safe custody of all documents relating to property mortgaged to the company;\n(b) a requirement that the arrangements made for assessing the adequacy of the security for any loan to be secured on land which is to be made by the company shall be such as may reasonably be expected to ensure that–\n(i) an assessment will be made on the occasion of each loan;\n(ii) each assessment will be made by a person holding office in or employed by the company who is competent to make the assessment and is not a person disqualified from assessment;\n(iii) each person making the assessment will have furnished to him a written report on the value of the land and any factors likely materially to affect its value made by a person who is competent to value the land in question and who is not a person disqualified from valuation; and\n(iv) no authorisation of any loan will be made by a person disqualified from assessment; and\n(c) a requirement that the company shall make arrangements such as may reasonably be expected to ensure that–\n(i) it will not make any loan secured on land by a mortgage unless the rights and duties of the company as mortgagee under the mortgage may be transferred to any other person without the consent of the mortgagor; and\n(ii) it will not lend money on the security of land in circumstances where, if the borrower were a member of the society, the society itself would be unable to make the loan.\n(3) For the purposes of subparagraph (2)(b) above–\n(a) in relation to any land which is to secure a loan where the loan is to be made following a disposition of the land, the following persons are persons disqualified from assessment, that is to say–\n(i) any person, other than the company making the loan, having a financial interest in the disposition of the land and any director, other officer or employee of his or of an associated employer; and\n(ii) any person receiving a commission for introducing the parties to the transaction involving the disposition and any director, other officer or employee of his; and\n(b) in relation to any land which is to secure a loan, the following persons are persons disqualified from valuation, that is to say–\n(i) the directors and any other officer or employee of the company who makes assessments of the adequacy of securities for loans by the company or who authorises the making of such loans;\n(ii) where the company has made, or undertaken to make, to any person a payment for introducing to it an applicant for the loan, that person;\n(iii) where the loan is to be made following a disposition of the land, any person having a financial interest in the disposition of the land and any director, other officer or employee of his or of an associated employer; and\n(iv) where the loan is to be made following a disposition of the land, any person receiving a commission for introducing the parties to the transaction involving the disposition and any director, other officer or employee of his.\n(4) For the purposes of subparagraph (3) above–\n(a) any two employers are associated if one is a body corporate of which the other (directly or indirectly) has control or if both are bodies corporate of which a third person directly or indirectly has control; and the expression “associated employer” shall be construed accordingly;\n(b) “commission” includes any gift, bonus or benefit; and\n(c) a person shall be taken to have a financial interest in the disposition of any land if, but only if, he would, on a disposition of that land, be entitled (whether directly or indirectly, and whether in possession or not) to the whole or part of the proceeds of the disposition.”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1989/215/schedule/paragraph/2",
    "retrieved_at": "2026-10-29T15:49:55.750552+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}