Article 3 Amendment of 1986 Order

in article 2 (interpretation), in the definition of “participant”, the words “(other than a guarantor)” shall be inserted after the word “contract”;

in article 3, paragraph (3) (which limits participants) shall be replaced by the following paragraph —

“(3)

No prescribed contract may be effected by a society save where the obligations of the participant thereunder fall to be performed by —

(a)

a person some of whose liabilities societies, or societies of a particular description, are empowered for the time being, under section 21 (liquid assets) of the Building Societies Act 1986, to hold as assets of an authorised character, or

(b)

a person performance of whose obligations under the contract is guaranteed by a person who comes within subparagraph (a) above.”.