Paragraph 3

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. Pt I. paras 2(a)(c). 3(1)(b)(c) amended by Building Societies (Liquid Asset) 1992 reg.2(a)(b)
Sch, Pt I. para 9 added by Building Societies (Liquid Asset) 1992 reg.2(c)
Sch, Pt II amended by Building Societies (Liquid Asset) 1992 reg.3
Sch. Pt III (defn. of clearing agent) added by Building Societies (Liquid Asset) 1992 reg.4(1)
Sch, Pt III (defn of depository) added by Building Societies (Liquid Asset) 1992 reg.4(2)
Sch. Pt III (defn of EFTA State) added by Building Societies (Liquid Asset) 1992 reg.4(2)
Sch. Pt III (defn of mortgage backed securities) amended by Building Societies (Liquid Asset) 1992 reg.4(3)
Sch, Pt III (defn of rights to any securities) added by Building Societies (Liquid Asset) 1992 reg.4(4)
Sch., Pt.III (defn. of stock iending right) added by Building Societies (Liquid Asset) 1995 reg.3(c)
Sch., Pt.II, para.1 amended by Building Societies (Liquid Asset) 1995 reg.2(a)
Sch., Pt.III (defn. of mortgage backed securities) para.(ii) substituted by Building Societies (Liquid Asset) 1995 reg.2(b)
Sch. Pt. 3 words substituted by Bank of England Act 1998 (Consequential Amendments of Subordinate Legislation) 1998 Sch. 1 para. 12(a)
Sch. Pt. 3 words substituted by Bank of England Act 1998 (Consequential Amendments of Subordinate Legislation) 1998 Sch. 1 para. 12(b)

A loan which comes within paragraph 7(b) of Part I is a liquid asset only where—

(a)

it is secured by a charge on revenues of the relevant authority or on a fund into which such revenues are payable, or

(b)

it is made on the giving of—

(i)

a receipt for the loan by the Treasurer or other similar officer of the relevant authority, and

(ii)

an undertaking by the relevant authority that, if requested to charge the loan on revenues of the authority or on a fund into which such revenues are payable, it will either comply with the request or repay the loan.