The Building Societies (Deferred Shares) Order 1991

• Citation: S.I. 1991/701
• Sections: 4

Section 1 Citation and commencement

This Order may be cited as the Building Societies (Deferred Shares)Order 1991 and shall come into force on 1st June 1991.

Section 2 Interpretation

In this Order unless the context otherwise requires—

“the Act” means the Building Societies Act 1986;

“creditors”, in relation to a society extends to members holding shares in the society, other than deferred shares, as regards the principal of those shares and all interest due thereon in accordance with their terms;

“issue terms” in relation to an issue of deferred shares means the provisions of a document which sets out, or of a connected series of documents which set out, the rights and obligations of the society and shareholders in respect of those shares;

“relevant consent” means consent applied for by the society otherwise than in consequence of a provision among the issue terms requiring the society so to apply or granting the society any benefit for so applying or imposing a sanction against failure so to apply;

“the Schedule” means the Schedule to this Order; and

“society” in relation to deferred shares means a society which proposes to issue or, as the case may be, has issued, such shares.

Section 3 Deferred Shares

(1) Shares which are issued by a society upon terms which have the effect of the key term set out in the Schedule to this Order and in respect of which the condition set out in paragraph (2) of this article is satisfied, shall be shares of a class defined as deferred shares for the purposes of section 119 of the Act.

(2) The condition mentioned in paragraph (1) of this article is that the document containing the issue terms, or where the issue terms are contained in a series of documents, one of those documents, being in either case a document which is furnished to every applicant for the shares and every document evidencing title to the shares shall contain a prominent statement to the effect that the shares are deferred shares for the purposes of section 119 of the Act and are not protected investments for the purposes of payments out of the Building Societies Investor Protection Fund.

Section 4 Revocation

The Building Societies (Deferred Shares) Order 1989 shall cease to have effect, but any shares issued by a society prior to the date on which this order comes into force and in respect of which the terms are in compliance with article 3 of that Order shall continue to be shares of a class defined as deferred shares for the purpose of section 119 of the Act.