# The Building Societies (Prescribed Contracts) (Amendment) Order 1987, Article 3: Amendment of 1986 Order


The 1986 Order shall be amended as follows —
(a) in article 2 (interpretation), in the definition of “participant”, the words “(other than a guarantor)” shall be inserted after the word “contract”;
(b) 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.”.

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Source: https://www.legislation.gov.uk/uksi/1987/1500/article/3 (the official version)
Page: https://openlegislation.uk/building-societies-prescribed-contracts-amendment-order-1987/article-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.