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The Building Societies (Provision of Services) (No. 2) Order 1987

S.I. 1987/1848 · Made 19 October 1987

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

BUILDING SOCIETIES

Made 19th October 1987

Laid before Parliament 23rd October 1987

Coming into force 15th November 1987

The Building Societies Commission, in exercise of the powers conferred on it by section 34(2) and (8) of the Building Societies Act 1986f1 and of all other powers enabling it on that behalf, hereby makes the following Order:

Annotations to the whole text

Footnotes

f1

1986 c. 53; Schedule 8 was amended by S.I. 1987/172 and 1670.

Contents

  1. 1Citation and commencement
  2. 2Variation of Schedule 8 to the Building Societies Act 1986
  3. Signature
  4. Explanatory note

1Citation and commencement

This Order may be cited as the Building Societies (Provision of Services) (No. 2) Order 1987 and shall come into force on 15th November 1987.

2Variation of Schedule 8 to the Building Societies Act 1986

Schedule 8 to the Building Societies Act 1986 (provision of services) shall be varied by the following amendments —

(a)

in paragraph 7(a) of Part III, after the words “authorised institution” there shall be inserted the words “or building society”;

(b)

in paragraph 7(c) of Part III, after the words “other body” there shall be inserted the words “or description of body”; and

(c)

in paragraph 7 of Part IV, in the definition of “mortgage investments”, for the words “advances secured on land” there shall be substituted the words “secured lending where the security comprises or includes land”.

Signature

In witness whereof the common seal of the Building Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 19th October 1987.

L.S.

D. B. Severn

Secretary to the Commission

Explanatory note

(This note is not part of the Order)

The Order varies Schedule 8 to the Building Societies Act 1986 in relation to the power of building societies to manage the mortgage investments of others and arrange for the provision of credit by others. Article 2(a) includes other building societies among the bodies for which a particular building society may arrange credit. Article 2(b) provides for the approval by the Building Societies Commission of descriptions of bodies (as well as individual bodies) for the purposes of arranging the provision of credit. Article 2(c) relates to the power to manage mortgage investments, which is found in paragraph 4 of Part I of Schedule 8. In Part IV “mortgage investments” are defined as meaning rights arising out of advances secured on land, a term which, in the context of the Act, means an advance of a particular nature by a building society, and accordingly the power is limited to the power to act on behalf of another society. Article 2(c), by changing the definition, removes that restriction.