# The Building Societies (Prescribed Contracts) Order 1988, Note: Explanatory note


(This note is not part of the Order)
This Order prescribes swap contracts, sterling interest rate option contracts, swap option contracts and sterling interest rate forward and futures contracts as types of contract which a building society may enter into under section 23 of the Building Societies Act 1986 for the purpose of reducing the risk of loss.
The power to enter into such contracts is only available to a building society which has a qualifying asset holding and has adopted the power in section 23. A building society has a qualifying asset holding where the aggregate value of its total commercial assets is not less than £100 million.
Article 4 of this Order revokes the Building Societies (Prescribed Contracts) Order 1986 (which prescribed sterling interest rate swaps and capital and interest currency swaps) and the Building Societies (Prescribed Contracts) (Amendment) Order 1987 (which varied the specification of participants). The validity of prescribed contracts entered into under those Orders is preserved by article 5.

---
Source: https://www.legislation.gov.uk/uksi/1988/1344/note (the official version)
Page: https://openlegislation.uk/building-societies-prescribed-contracts-order-1988/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.