{
  "url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/regulation-5",
  "json_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/regulation-5.json",
  "legislation": "uksi/1996/3008",
  "legislation_title": "The Friendly Societies (Insurance Business) (Amendment) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996",
  "path": "regulation/5",
  "kind": "regulation",
  "number": "5",
  "heading": "Interpretation: Part IV",
  "text": "For paragraphs (3) and (4) of regulation 19 substitute—\n“(3) For the purposes of these Regulations, a debt owed to (or an obligation to be fulfilled for the benefit of) a society shall be regarded as being secured only to the extent that it is—\na) secured by—\n(i) a letter of credit established with an approved credit institution; or\n(ii) a guarantee provided by an approved credit institution,\nand the sum of the aggregate amount available under all letters of credit established for the benefit of the society with the same counterparty, the aggregate amount of all guarantees issued for the benefit of the society by that counterparty and the amount of any exposure of the society to that counterparty does not exceed the permitted counterparty exposure limit for that counterparty; or\n(b) secured by assets for the valuation of which provision is made in this Part of these Regulations and—\n(i) the value of such assets (after deducting reasonable expenses of sale and the amount of any other debt or obligation secured thereon having priority to or ranking equally with the debt or obligation) is sufficient to enable the debt or obligation to be discharged in full; and\n(ii) the value of the assets when aggregated with the society’s exposure to assets of the same description does not exceed the permitted exposure limit for assets of that description (as defined in regulation 32 of, and paragraph 3 of Schedule 5 to, these Regulations); and\n(iii) where the assets give rise to exposure to a counterparty, the exposure of the society to that counterparty, when added to the sum of the aggregate amount available under all letters of credit established for the benefit of the society with that counterparty, and the aggregate amount of all guarantees issued for the benefit of the society by that counterparty, does not exceed the permitted counterparty exposure limit for that counterparty.\n(4) For the purposes of paragraph (3) above—\n(a) the aggregate amount available under letters of credit established with a counterparty shall be taken not to exceed the sum of the aggregate amount of all debts and the aggregate value of all obligations in respect of which those letters of credit were established;\n(b) the aggregate amount of guarantees issued by a counterparty shall be taken not to exceed the sum of the aggregate amount of all debts and the aggregate value of all obligations so guaranteed; and\n(c) assets which are securing any other debt owed to (or obligation to be fulfilled for the benefit of) the society shall be treated as if they were assets of the society.”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/3008/regulation/5",
    "retrieved_at": "2026-10-29T12:31:09.195562+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."
}