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Article 3 Amendment of Schedule 8 to the Act

Original text. Later amendments are not shown.

This article amends Schedule 8 (powers to provide services) to the Act as follows:

(a)

In Part II of Schedule 8, for paragraph 4 there shall be substituted the following paragraph–

“4

The right to recover any sum overdrawn (with or without interest on it) on an unauthorised overdraft on an account with a building society shall not be treated as excluded by paragraph 1 above.”;

(b)

To Part II of Schedule 8 there shall be added, after paragraph 5, the following paragraph–

“6

Paragraph 1 above shall not be taken to prevent the power to provide the service of trusteeship or the power to provide the service of executorship from conferring the power on a building society acting in the capacity of trustee or personal representative–

(i)

to make advances or loans of any description, or

(ii)

to acquire land.”;

(c)

Part III of Schedule 8 shall be varied by the deletion of paragraphs 1(b) and (c);

(d)

In Part III of Schedule 8, for paragraph 3 there shall be substituted the following paragraph–

“3

In relation to the power to provide the service of trusteeship–

(a)

a building society may not accept trusteeship of a prohibited trust, and

(b)

a building society which becomes aware that a trust of which it is trustee has become a prohibited trust shall retire as trustee of that trust as soon as it is practicable to do so.”;

(e)

In Part IV of Schedule 8, in paragraph 8 (interpretation), after the definition of “arranging” there shall be inserted the following definitions–

  • ““bailment”, in relation to Scotland, means “hire”;

  • “chattels” means–

    1. (i)

      in relation to England and Wales and Northern Ireland, all personal chattels other than things in action and money, and

    2. (ii)

      in relation to Scotland, all corporeal moveables except money;”;

(f)

In Part IV of Schedule 8, in paragraph 8, for the definition of “leasable chattel” there shall be substituted the following definition–

  • ““leasable chattels” means chattels which are, or are to be, subject to bailment to a person in return for periodical payments by that person under an agreement which may but need not contain provision (or be part of a series of agreements containing provision) for the property in those chattels to become vested in that person;”; and

(g)

In Part IV of Schedule 8, in paragraph 8, after the definition of “the principal business of a building society” there shall be inserted the following definition–

  • ““prohibited trust” means a trust which is either–

    1. (a)

      a trust under which the majority in number of the beneficiaries who are for the time being ascertained are non-charitable corporate bodies, or

    2. (b)

      a trust of funds in a pension scheme which includes provisions requiring the investment of any of those funds in shares in or deposits with a building society of which the trustee is a subsidiary.”.