Article 3 Purpose or principal purpose of building societiesI1
United Kingdom
Section 5 of the 1986 Act (establishment, constitution and powers)f1 applies in relation to a relevant building society with the following modification.
No relevant building society shall be regarded as failing to comply with section 5(1)(a) (purpose or principal purpose) by virtue of any financial assistance it receives from a qualifying institution.
The powers conferred F1... by sections 36 and 37 of the 1986 Act (power to direct restructuring of business etc and powers to petition for winding up etc) shall not become exercisable in relation to a building society which receives financial assistance if, but for the financial assistance, they would not have become exercisable.
Sections 5(4A), 36(1) and 37(1) shall be construed accordingly.
A building society to which paragraph (3) applies is to be disregarded for the purposes of section 1(1)(a) and (1A)(a) of the 1986 Act.
Annotations
Textual amendments
- F1
Words in art. 3(3) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 11 para. 18(3)(a) (with Sch. 12)
- F2
Art. 3(5) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 11 para. 18(3)(b) (with Sch. 12)
Commencement
- I1
Art. 3 in force at 7.4.2010, see art. 1(2)
Footnotes
- f1
-
Section 5 was amended by the Building Societies Act 1997, sections 1 and 3, and by S.I. 2001/2617. The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (c. 26), section 1(2), inserts section 5(11) to (14), from a date to be appointed.