Paragraph 7 Meaning of activities in the range from which a society is restricted
For the purposes of paragraph 6 above an activity of a body corporate is an activity in the range from which a society is restricted where it is an activity which the society could not undertake by reason of the fact that–
it has not adopted a particular adoptable power, whether because the power is not available to it or for any other reason;
in the case of a body corporate other than an estate agency body, the activity would be in contravention of a restriction upon the extent of a power the society has adopted, being either a restriction derived from the Act or any instrument under the Act or a restriction assumed by the society, or
in the case of an estate agency body, the activity would be in contravention of a restriction upon the extent of a power the society has adopted being either a restriction specified in Part III of Schedule 8 to the Actf1 and relating to a power to provide a financial service within the meaning of section 34(11) of the Act or a restriction assumed by the society.
Notwithstanding sub–paragraph (1) above, an activity of a body corporate is not an activity within the range from which a society is restricted where it is an activity which comprises–
in the case of an ancillary services body which is a subsidiary of a society, bailment of chattels by such body to that society or to any of that society’s subsidiaries in return for periodical payments by the society or any of the society’s subsidiaries, where property in the chattel is vested in the ancillary services body and whether or not the terms of the bailment contain provision for the property in such chattel to become vested in the bailee, and
in the case of any body except Girobank plc, the continuation, during the first fifteen months following the date on which the body corporate first became an associated body of the society, of any activity carried on as part of the business of that body corporate immediately before that date, or
in the case of Girobank plc–
holding shares in the office of the Banking Ombudsman, or
holding any debt owed by a local authority in Great Britain arising from a loan (other than a loan corresponding to an advance secured on land) made before the date Girobank plc became an associated body of the society.