Article 3 Purpose or principal purpose of building societies
Section 5 of the 1986 Act (establishment, constitution and powers)f1 applies in relation to a relevant building society with the following modification.
No relevant building society shall be regarded as failing to comply with section 5(1)(a) (purpose or principal purpose) by virtue of any relevant financial assistance it receives from the Bank of England.
The powers conferred on the Authority by sections 36 and 37 of the 1986 Act (power to direct restructuring of business etc and powers to petition for winding up etc) shall not become exercisable in relation to a building society which receives relevant financial assistance if, but for the relevant financial assistance, they would not have become exercisable.
Sections 5(4A), 36(1) and 37(1) shall be construed accordingly.
The Authority shall disregard, for the purposes of its section 1(1)(a) function, a building society to which paragraph (3) applies.
Annotations
Footnotes
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Section 5 was amended by the Building Societies Act 1997, sections 1 and 3, and by S.I. 2001/2617. The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (c. 26), section 1(2), inserts section 5(11) to (14), but at the time this Order was laid before Parliament in draft those amendments were not in force.