# The Building Societies (Undated Subordinated Debt) Order 1994, Paragraph 1


The disqualifying terms are—
(a) any term which requires or permits the debt to be repaid otherwise than in sterling;
(b) subject to paragraph 3 below any term which has effect so as to prohibit, restrict or impose any sanction against the taking by the borrower, being a society, of any steps towards—
(i) amalgamation with another building society under section 93 of and Schedule 16 to the Act;
(ii) transfer of its engagements to any extent to another society in accordance with section 94 of and Schedule 16 to the Act; or
(iii) transfer of the whole of its business to a company in accordance with the applicable provisions.
(c) any term which has the effect that the rate of interest, or as the case may be, margin, specified in respect of the debt is increased by more than—
(i) 0.75% in a single step;
(ii) 0.75% in aggregate by a number of steps in any period of 5 years; or
(iii) 1.5% in aggregate by a number of steps without limit of time,
ascertained in accordance with paragraph 2 below.

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Source: https://www.legislation.gov.uk/uksi/1994/749/schedule/2/paragraph/1 (the official version)
Page: https://openlegislation.uk/building-societies-undated-subordinated-debt-order-1994/schedule-2/paragraph-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.