The Building Societies (Aggregation) (Amendment) Rules 1992

• Citation: S.I. 1992/2748
• Sections: 2

Section 1 Title and commencement

These rules may be cited as the Building Societies (Aggregation) (Amendment) Rules 1992 and shall come into force on 15th December 1992.

Section 2 Amendment of previous rules

The Building Societies (Aggregation) Rules 1990 shall be amended as follows:—

(a) by the insertion before the definition “signed by the board” in rule 2 the following definition:—

“secured loan” means any loan arising from “making advances indirectly secured on land” within the meaning of those words for the purposes of the Building Societies (Designation of Qualifying Bodies) Order 1992 ;

(b) by the substitution of the following for rule 5:—

Attribution and aggregation of assets of associated bodies other than mortgage debts and secured loans

(5) Where an associated body has assets, which not being mortgage debts and not being secured loans, and which were they assets of the society would be class 3 assets, then, in determining for the purposes of section 20 (limits on percentages of classes of assets) of the Act the asset holding of the society, those assets of the associated body shall be attributed to the society to be aggregated to the class 3 assets of the society.

(c) by the substitution of “Attribution and aggregation of mortgage debts and of secured loans of associated bodies”for the heading to rule 6;

(d) by the insertion in rule 6 of “—(1)” before the words “Where an associated body”, and the addition of the sub—rule:

(2) Where an associated body has secured loans, in determining for the purposes of section 20 (limits on percentages of classes of assets) of the Act the amount of the asset holding of the society—

(a) the secured loans may be attributed to the society to be aggregated to the class 2 assets of the society in accordance with rule 7 below, and

(b) the secured loans, which are not attributed to the society to be aggregated to the class 2 assets of the society in accordance with rule 7 below, shall be attributed to the society to be aggregated to the class 3 assets of the society.

(e) by the insertion in rule 7 of “—(1)” before the words “Subject to rules 8 and 9”, and the addition of the sub—rule:

(2) Subject to rule 9 below, secured loans may be aggregated to the Class 2 assets of the society, where the board of the society is satisfied that the assets are secured loans.

(f) by the insertion in rule 9 after the words “mortgage debts” where ever they occur the words “, or secured loans as the case may be,”; and,

(g) by the deletion from rule 11 of the words “is a body within the description in section 18(2)(b) (corresponding European bodies) of the Act or” and the words “European lending company,”.