The Deregulation (Building Societies) Order 1995

• Citation: S.I. 1995/3233
• Sections: 7

Section 1 Title and commencement

This Order may be cited as the Deregulation (Building Societies) Order 1995 and shall come into force one month after the day on which it is made except for article 5 which shall come into force six months after that day.

Section 2 Interpretation

In this Order “the 1986 Act ” means the Building Societies Act 1986.

Section 3 Power of building societies to hold land overseas

In section 6(4) of the 1986 Act (power of a building society to hold land etc. overseas for purposes of its business) for the words “subsections (1) and (2)” there shall be substituted the words “subsections (1), (2) and (3)”.

Section 4 Limit on non-retail funds and borrowing

(1) In section 7(3) of the 1986 Act (limit on non-retail funds and borrowing) for the words “subsection (14)” there shall be substituted the words “subsections (13A) and (14)” and for the words “the prescribed percentage” there shall be substituted the words “50 per cent.”.

(2) After section 7(13) of the 1986 Act there shall be inserted the following subsection—

(13A) In making any calculation for the purposes of subsection (3) above, there shall be disregarded any liability in respect of anything which, in accordance with any order made under section 45(5), is to be aggregated with reserves for the purpose of the first criterion in section 45(3) .

(3) Section 7(15) of the 1986 Act (prescribed percentage limit) and the word “(15)” in section 7(17) of that Act are hereby repealed.

Section 5 Obligation to meet liabilities of associated bodies

(1) Section 22 of the 1986 Act (obligation to meet liabilities of associated bodies) is hereby repealed.

(2) Notwithstanding its repeal by paragraph (1) above, section 22 of the 1986 Act shall continue to have effect in relation to any liability which—

(a) is incurred before the day on which this article comes into force, or

(b) arises out of an obligation entered into before that day, or

(c) in the case of a liability in tort or delict, is referable to an act or omission occurring before that day.

Section 6 Auditors' reports

In section 78(2) (auditors' report at annual general meeting)—

(a) the words “be read before the building society at the annual general meeting and shall” are hereby repealed, and

(b) after “be open to inspection by any member” there shall be inserted “at the annual general meeting of the building society”.

Section 7 Notification of sale of mortgaged property

After paragraph 1(1) of Schedule 4 to the 1986 Act there shall be inserted—

(1A) Sub-paragraph (1)(b) above shall not apply where the person selling the land has reasonable cause to believe that communications sent to the mortgagor at his last-known address are unlikely to be received by him.