Explanatory note

Section 9A(4)(b) of the Building Societies Act 1986 permits a building society or a subsidiary undertaking of a building society to enter into a transaction involving derivative investments, notwithstanding the prohibition on such transactions in section 9A(1)(c), if it is entered into for the purpose of limiting the extent to which the society, or a connected undertaking of the society, will be affected by changes in certain factors. This Order varies section 9A(4)(b) by adding as a factor the ability or willingness of one or more persons to pay or repay a sum or sums owing at law or in equity to the society or a connected undertaking of the society.