{
  "url": "https://openlegislation.uk/draft-building-societies-floating-charges-and-other-provisions-order-2016/note",
  "json_url": "https://openlegislation.uk/draft-building-societies-floating-charges-and-other-provisions-order-2016/note.json",
  "legislation": "ukdsi/2016/9780111143445",
  "legislation_title": "The Building Societies (Floating Charges and Other Provisions) Order 2016",
  "legislation_url": "https://openlegislation.uk/draft-building-societies-floating-charges-and-other-provisions-order-2016",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order amends certain enactments in consequence of the repeal of section 9B (restriction on creation of floating charges) of the Building Societies Act 1986 (c. 53) (“the Act”). The repeal was made by paragraph 4 of Schedule 9 to the Financial Services (Banking Reform) Act 2013 (c. 33) (building societies: ability to create floating charges), which was commenced by the Financial Services (Banking Reform) Act 2013 (Commencement (No. 8) and Consequential Provisions) Order 2015 (S.I. 2015/428 (C. 25)) (“the Commencement Order”). The repeal allows building societies to create floating charges.\nArticles 2 to 4 amend section 90A of, and Schedules 15 and 15A to, the Act, which concern the application to building societies of winding up and other companies insolvency legislation. Most of the amendments are made in consequence of enabling the appointment of a receiver, but not an administrative receiver, of a building society’s property which is subject to a floating charge.\nArticle 5 amends the Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188) (“the 2010 Order”), mainly in consequence of certain amendments of Schedule 15A to the Act (in article 4 of this Order) which supersede provision made by the 2010 Order.\nArticle 5(3)(b) and (c) includes substituted provision for the modification of section 48 of the Insolvency Act 1986 (c. 45) and Article 58 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)). These modifications ensure that provision on reports by an administrative receiver are applied compatibly with the treatment (by virtue of the Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486)) of certain depositors as preferential creditors and of others as ordinary creditors of a building society.\nArticle 6 amends the Scotland Act 1998 (c. 46) in consequence of the renaming of the Financial Services Authority by the Financial Services Act 2012 (c. 21).\nArticle 7 amends the Commencement Order, which applied legislation governing floating charges in Scotland (with modifications) in consequence of the repeal of section 9B of the Act. The amendments take account of the application by this Order of Chapter 2 of Part 3 of the Insolvency Act 1986 (receivers (Scotland)).\nAn impact assessment of the effect of this Order and of the Commencement Order on the costs of business and the voluntary sector has been prepared and is available on HM Treasury’s website (www.gov.uk/treasury) or from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is annexed to the Explanatory Memorandum for this Order.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 9B was inserted by the Building Societies Act 1997, section 11."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2016/9780111143445/note",
    "retrieved_at": "2026-10-30T15:08:31.740903+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}