The Building Societies (Prescribed Contracts) (Amendment) Order 1987

• Citation: S.I. 1987/1500
• Sections: 4

Section 1 Citation and commencement

This Order may be cited as the Building Societies (Prescribed Contracts) (Amendment) Order 1987 and shall come into force on 1st October 1987.

Section 2 Interpretation

In this Order “the 1986 Order ” means the Building Societies (Prescribed Contracts) Order 1986 .

Section 3 Amendment of 1986 Order

The 1986 Order shall be amended as follows —

(a) in article 2 (interpretation), in the definition of “participant”, the words “(other than a guarantor)” shall be inserted after the word “contract”;

(b) in article 3, paragraph (3) (which limits participants) shall be replaced by the following paragraph —

(3) No prescribed contract may be effected by a society save where the obligations of the participant thereunder fall to be performed by —

(a) a person some of whose liabilities societies, or societies of a particular description, are empowered for the time being, under section 21 (liquid assets) of the Building Societies Act 1986, to hold as assets of an authorised character, or

(b) a person performance of whose obligations under the contract is guaranteed by a person who comes within subparagraph (a) above.

Section 4 Transitional Provision

(1) Nothing in this Order shall be taken to invalidate any contract effected by a society in the previous period in accordance with the 1986 Order as a prescribed contract.

(2) For the purposes of this article the previous period is the period which —

(a) began on the day on which the 1986 Order came into force, and

(b) ended on the day before the day on which this Order came into force.