Part IV INTERPRETATION

In this Schedule—

• “acceptance”, in relation to a bill, means signing as acceptor a bill addressed to the signatory, and “accept” shall be construed accordingly;

• “Banking Act authorised institution” means—

  1. (a)

     until paragraph 2 of Schedule 5 (transitional provisions) of the Banking Act 1987^f1 comes into force—

     1. (i)

        a recognised bank, or

     2. (ii)

        except in respect of the definition of “eligible bank” below, a licensed institution, and

  2. (b)

     once that paragraph comes into force, an institution which is, or is deemed by that paragraph to be, an authorised institution for the purposes of the Banking Act 1987;

• “bill” means a bill of exchange;

• “cash” means banknotes or coinage of any country or territory;

• “certificate of deposit” means a certificate relating to money deposited with the issuer which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable;

• “the CGO Service” has the meaning which it has for the purposes of the Stock Transfer (Gilt-edged Securities) (CGO Services) Regulations 1985^f2;

• “deposit” has—

  1. (a)

     until section 5 (meaning of “deposit”) of the Banking Act 1987 comes into force, the meaning which it would have for the purposes of the Banking Act 1979^f3 were not section 1(5)(b) and (c) (which excludes loans by societies and lending businesses) included therein, and

  2. (b)

     once section 5 of the Banking Act 1987 comes into force, the meaning which it would have for the purposes of the Banking Act 1987 were not section 5(3)(b) and (c) (which excludes sums paid by societies and lending businesses) included therein;

• “eligible bank” means a Banking Act authorised institution the business of which includes the acceptance of bills for the purpose of their being acquired at a discount by the Bank of England;

• “floating rate note” means a note which embodies a right, transferable to any person by delivery or by a method specified in the note, to receive a principal sum and interest at a rate which is variable at times specified in the note;

• “gilt-edged market maker” means—

  1. (a)

     at any time when any list is being maintained by the Bank of England for the purposes of section 43 (listed money market institutions) of the Financial Services Act 1986^f4, a person then included in any such list whose business includes the sale, directly to the Bank of England, of marketable securities issued in the United Kingdom by Her Majesty’s Government, and

  2. (b)

     at any other time, a person whose business includes the sale, directly to the Bank of England, of marketable securities issued in the United Kingdom by Her Majesty’s Government;

• “licensed institution” has the meaning which it has for the purpose of the Banking Act 1979;

• “local authority” means any of the following authorities:

  1. (a)

     in England and Wales, a county council, a district council, a London borough council, a parish or community council, the common Council of the City of London, and the Council of the Isles of Scilly;

  2. (b)

     in Scotland, a local authority within the meaning of section 235 of the Local Goverment (Scotland) Act 1973^f5;

  3. (c)

     in Northern Ireland, a district council within the meaning of section 1 of the Local Government Act (Northern Ireland) 1972^f6;

• “marketable security” means—

  1. (a)

     any security the price of which is quoted on the Stock Exchange; or

  2. (b)

     where that security comprises a bond which is not so quoted, a bond which is issued by a local authority in whole or in part to a person carrying on, in the United Kingdom, the business of a discount house;

• “ordinary repayment notice” means a notice requiring repayment of a deposit or loan which neither contains nor is accompanied by a statement of reasons why it is served;

• “recognised bank” has the meaning which it has for the purposes of the Banking Act 1979;

• “relevant authority” means any of the following:

  1. (a)

     a local authority;

  2. (b)

     any authority all the members of which are appointed or elected by one or more local authorities;

  3. (c)

     any authority the majority of the members of which are appointed or elected by one or more local authorities in the United Kingdom, being an authority which by virtue of any enactment has power to issue a precept to a local authority in England and Wales, or a requisition to a local authority in Scotland, or to the expenses of which, by virtue of any enactment, a local authority in the United Kingdom is or can be required to contribute;

  4. (d)

     the Receiver for the Metropolitan Police District or a combined police authority (within the meaning of the Police Act 1964^f7);

  5. (e)

     a water authority within the meaning of section 2(3) of the Water Act 1973^f8;

  6. (f)

     a passenger transport executive within the meaning of section 9(1) of the Transport Act 1968^f9;

  7. (g)

     a residuary body within the meaning of section 105(1) of the Local Government Act 1985^f10;

  8. (h)

     the Inner London Education Authority established under section 18 of the Local Government Act 1985;

• “securities” includes stock, debentures, debenture stock and bonds;

• “Stock Exchange money broker” means—

  1. (a)

     at any time when any list is being maintained by the Bank of England for the purposes of section 43 of the Financial Services Act 1986, a person then included in any such list whose business includes the receipt of marketable securities in the circumstances set out in paragraph 6(a)(i) of Part II above and, where it includes it, includes an obligation to transfer those marketable securities to, or to the order of, a gilt-edged market maker, and

  2. (b)

     at any other time, a person whose business includes the receipt of marketable securities in the circumstances set out in paragraph 6(a)(i) of Part II above and, where it includes it, includes an obligation to transfer those marketable securities to, or to the order of, a gilt-edged market maker;

• “Treasury bills” includes bills issued by Her Majesty’s Government in the United Kingdom and Northern Ireland Treasury Bills; and

• “value” means the value at which a liquid asset is taken into the books of the society.