Explanatory note

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.