The Building Societies (Liquid Asset) Regulations 1991

• Citation: S.I. 1991/2580
• Sections: 17

Section 1 Citation and commencement

These Regulations maybe cited as the Building Societies (Liquid Asset) Regulations 1991 and shall come into force on 16th December 1991.

Section 2 Interpretation

In these Regulations—

“ the Act ” means the Building Societies Act 1986;

“liquid asset” means an asset of a character which societies may hold under section 21 (liquid assets) of the Act for the purpose of meeting their liabilities as they arise;

“predecessor” means, in relation to an existing society—

a society which has transferred its. engagements to that existing society, or

a society which—

has amalgamated with one or more societies under section 93 (amalgamations) of the Act so as to establish that existing society as their successor, or

has united with one or more societies under section 18 (unions) of the Building Societies Act 1962 or of the Building Societies Act (Northern Ireland) 1967 so as to become that existing society; and

“society” means a building society.

Section 3 Prescription of liquid assets

(1) Each description of assets which—

(a) comes within a provision of Part I of the Schedule hereto, and

(b) where a provision of Part 11 of the Schedule hereto applies to it, conforms with the requirements of that provision,

is prescribed as a description of liquid assets.

(2) The definitions in Part III of the Schedule hereto have effect in respect of the interpretation of that Schedule.

Section 4 Revocation

The Building Societies (Liquid Asset) Regulations 1987 , The Building Societies (Liquid Asset) (Amendment) Regulations 1989 , and The Building Societies (Liquid Asset) (Amendment) Regulations 1991 are hereby revoked.

Section 5 Transitional provision

(1) This regulation applies to assets of a society which are not liquid assets under these Regulations but are assets which—

(a)

(i) were previously liquid assets and have ceased to be so, and

(ii) have been held by the society continuously since a date before the date on which they ceased to be liquid assets, or

(b)

(i) were treated, by virtue of article 7 (liquid assets) of the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986 ,as if they were prescribed in liquid asset Regulations, and

(ii) have been held by the society continuously since a date before the date on which The Building Societies (Liquid Asset) Regulations 1987 came into force.

(2) A society which so holds assets to which this regulation applies shall not lose its power to continue to hold those assets.

(3) In this regulation a society is treated as including any predecessor of the society.

Section 1

Banknotes or coinage of any country or territory.

Section 1

A deposit which comes within paragraph 2(d) or (e) or a stock lending right which comes within paragraph 8 of Part I is a liquid asset only where it is secured by the transfer to the society of liquid assets which come within paragraphs 2(a) or (c), 3(1)(a) of that Part.

Section 2

Deposits with—

(a) the central bank of any member State of the European Community and of Canada, Japan, Sweden, Switzerland and the United States of America,

(b) the National Savings Bank,

(c) any credit institution authorised by the competent authorities of a member State of the European Community,

(d) any gilt-edged market maker, or

(e) any Stock Exchange money broker.

Section 2

A loan which comes within paragraph 7(a) of Part I is a liquid asset only where it is secured by a charge on the Consolidated Fund of Northern Ireland.

Section 3

Securities—

(1)

(a) issued or guaranteed by the government of a state mentioned in paragraph 2(a),

(b) issued, guaranteed or, in the case of bills of exchange, accepted by credit institutions authorised by the competent authorities of any member State of the European Community,

(c) issued by international organisations the capital of which is subscribed in whole or part by any member State of the European Community,

(d) issued by any relevant authority, or

(2) in the form of commercial paper issued or guaranteed by

(a) companies of the types to which Directive 78/660/ EEC as amended by the Acts of Accession of Greece and of Spain and Portugal applies, or

(b) by public companies incorporated in Canada, Japan, Sweden, Switzerland and the United States of America,

provided that any guarantee is unconditional in respect of the payment of both principal of and interest on these securities.

Section 3

A loan which comes within paragraph 7(b) of Part I is a liquid asset only where—

(a) it is secured by a charge on revenues of the relevant authority or on a fund into which such revenues are payable, or

(b) it is made on the giving of—

(i) a receipt for the loan by the Treasurer or other similar officer of the relevant authority, and

(ii) an undertaking by the relevant authority that, if requested to charge the loan on revenues of the authority or on a fund into which such revenues are payable, it will either comply with the request or repay the loan.

Section 4

Mortgage backed securities.

Section 4

For the purpose of paragraphs 2(c) and 3(1)(b) of Part 1, a credit institution is authorised by the competent authorities of any member State of the European Community only if such authorisation is within the ambit of Directive 77/780/EEC .

Section 5

Certificates of Tax Deposit issued by the Treasury.

Section 6

National Savings Bonds.

Section 7

Loans to—

(a) the Department of Finance and Personnel (Northern Ireland), or

(b) any relevant authority.

Section 8

Stock lending rights against any Stock Exchange money broker.