Explanatory note
(This note is not part of the Order)
This Order amends section 7 of the Building Societies Act 1986 which empowers a building society to raise funds and borrow money and places a limit on non-retail funds and borrowing. This Order changes the coverage of that limited category in three respects:
it specifies the circumstances in which shares held or sums deposited by a body corporate in which individuals hold the beneficial interest are excluded from the category;
subject to (a), it includes all sums deposited by banking institutions within the category, notwithstanding any election by a society generally to treat balances of £50,000 or less as outside it; and
it widens the range of transferable instruments within the category, by including instruments which are freely transferable by means other than delivery.