Explanatory note

This Order empowers building societies with commercial assets of at least £100 million to operate accounts on which an individual can draw and to agree a limit of indebtedness of that individual to the society of up to £5,000. Any such indebtedness will count as a class 3 asset, and class 3 assets may not exceed more than 5 per cent of a society’s total commercial assets.

By virtue of sections 15 and 16 of the Building Societies Act a building society with that commercial asset holding may make mobile home loans of up to £10,000 per individual and other loans of up to £5,000 per individual, subject to provisions netting maximum amounts which may be so lent. This Order provides for the inclusion of indebtedness limits agreed under this Order in those netting arrangements.