Paragraph 6 Specification of particular restrictions for mortgage indemnity insurance bodies

(1)

In this Schedule the “particular restrictions for mortgage indemnity insurance bodies” means that a body corporate is not a mortgage indemnity insurance body for a society where—

(a)

for the purpose of carrying on mortgage indemnity insurance business the body is neither authorised nor otherwise entitled to carry on such business in any member State nor in any country or territory listed in paragraph 2(c) above, nor (where applicable) a candidate for authorisation in any such State, country or territory, and

(b)

its business includes any prohibited activity.

(2)

For the purposes of sub-paragraph (1)(b) above, a prohibited activity means the following—

(i)

any activity which is not listed in column 2 of Part I of the Schedule to this Order as an activity for which purpose the body may be formed, or

(ii)

any activity which is not one for which purpose a society may invest in and support the body by virtue of section 18(4) of the Act.