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Statutory Instrument 1987 No. 395

The Building Societies Act 1986 (Accounts and Related Transitional Provisions) Order 1987

(The document as of February, 2008)

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STATUTORY INSTRUMENTS

1987 No. 395

BUILDING SOCIETIES

The Building Societies Act 1986 (Accounts and Related Transitional Provisions) Order 1987

Made9th March 1987
Laid before Parliament11th March 1987
Coming into force1st April 1987

    The Treasury, in exercise of the powers conferred on them by section 121 of the Building Societies Act 1986[1], and of all other powers enabling them in that behalf, hereby make the following Order:—
    Citation and commencement
        1.    This Order may be cited as the Building Societies Act 1986 (Accounts and Related Transitional Provisions) Order 1987 and shall come into force on 1st April 1987.
    Interpretation
        2.    In this Order—

    "Northern Ireland society" means a society which, prior to 1st January 1987, was registered in Northern Ireland;

    "the operative date" means the date on which this Order comes into force;

    "the previous enactments" means—
       (a) except in relation to a Northern Ireland society, the Building Societies Act 1962[2], and
       (b) in relation to a Northern Ireland society, the Building Societies Act (Northern Ireland) 1967[3];


    "the previous Order" means the Building Societies Act 1986 (Rules and Miscellaneous Transitional Provisions) Order 1986[4];

    "the previous regulations" means—
       (a) except in relation to a Northern Ireland society, the Building Societies (Accounts and Annual Return) Regulations 1983[5], and
       (b) in relation to a Northern Ireland society, the Building Societies (Accounts and Annual Return) Regulations (Northern Ireland) 1984[6];


    "the registrar" means—
       (a) except in relation to a Northern Ireland society, the Chief Registrar, and
       (b) in relation to a Northern Ireland society, the officer appointed to perform the functions of registrar of building societies in Northern Ireland;


    "relevant accounts" means a society's revenue and appropriation account and balance sheet to which, by virtue of Article 3 below, this Order applies;

    "relevant return" means a society's annual return to the registrar to which, by virtue of Article 3 below, this Order applies;

    "the saved provisions" means the provisions of the previous enactments and of the previous regulations the application of which to relevant accounts and relevant returns has been saved as specified in Article 3(1) below; and

    "society" means a building society.
    Application of Order
        3.—(1)  Subject to paragraph (2) below, this Order applies to—
       (a) revenue and appropriation accounts and balance sheets, and
       (b) annual returns,
    the application to which of provisions of the previous enactments and the previous regulations has been saved by Article 12(1) (which dealt with accounts and audit) of the previous Order.

        (2)  This Order does not apply to—
       (a) an annual return or a revenue and appropriation account for, or a balance sheet as at the end of, a financial year which ended prior to 28th February 1987,
       (b) a revenue and appropriation account and balance sheet laid under section 77(1) of the previous enactments (which dealt with laying of accounts) prior to the operative date before the society at its annual general meeting, or
       (c) an annual return made under section 88(1) of the previous enactments (which imposed a duty to make annual returns) to the registrar prior to the operative date.

    Accounts
        4.—(1)  The relevant accounts of a society shall, in the circumstances specified, contain the particulars specified, in the manner specified, in Schedule 1 to this Order.

        (2)  The requirements of paragraph (1) above shall, subject to paragraph (3) below, apply in addition to requirements of the saved provisions.

        (3)  To the extent specified in Schedule 1 to this Order, an item which is capable thereunder of being included as an item in a society's balance sheet may be so included in substitution for compliance with the requirements of the previous regulations in respect thereof.

        (4)  If the requirements of paragraph (1) above are not met in the relevant accounts of a society, the society shall be treated, for the purposes of the saved provisions, as if its relevant accounts had not met the requirements of the previous regulations.
    Directors' report
        5.—(1)  Any directors' report required by subsection (3) of section 82 of the previous enactments (dealing with directors' reports) to be attached to a balance sheet in relevant accounts of a society shall, in the appropriate circumstances, include the appropriate particulars in place of the particulars required to be included therein by subsection (2)(b) of that section in relation to special advances.

        (2)  For the purposes of paragraph (1) above—
       (a) the appropriate circumstances are circumstances in which the society has, in relation to the financial year to which the directors' report relates, made the election in Article 6(2) of the previous Order (dealing with special advances);
       (b) the appropriate particulars are—
         (i) the total amount advanced during the period beginning on the first day of that financial year and ending on 31st December 1986 by the society on the security of freehold or leasehold estate, and the total number of mortgages executed in favour of the society during that period, and
         (ii) the proportion of that total amount which represents special advances, and the number of mortgages executed during that period to secure special advances.

        (3)  If the requirements of paragraph (1) above are not met in a society's directors' report to which that paragraph applies, the society shall be treated, for the purposes of the saved provisions, as if that directors' report had not met the requirements of section 82 of the previous enactments.
    Annual returns
        6.—(1)  The relevant return of a society shall comply with Schedule 2 to this Order.

        (2)  The requirements of paragraph (1) above shall apply—
       (a) in respect of matters specified in Part I of Schedule 2 to this Order, in addition to, in substitution for or as a restriction of (as specified therein) the requirements of the saved provisions,
       (b) in respect of matters specified in Part II of Schedule 2 to this Order, in addition to the requirements of the saved provisions.

        (3)  If the requirements of paragraph (1) above are not met in the relevant return of a society, the society shall be treated, for the purposes of the saved provisions, as if its relevant return had not met the requirements of the previous regulations.
    Auditors
        7.—(1)  Section 87(3) of the previous enactments (dealing with the report of auditors on accounts) shall apply to the report of auditors on any relevant accounts of a society as if the first statement required to be made thereunder were a statement of whether the balance sheet and revenue and appropriation account were properly drawn up in accordance with the requirements of the previous enactments and the previous regulations as varied and supplemented by this Order.

        (2)  Section 91(3) of the previous enactments (dealing with the report of auditors on the annual return) shall apply to the report of auditors on any relevant return of a society as if the statement required to be made by paragraph (a) thereof were a statement of whether in their opinion the annual return was properly drawn up in accordance with the requirements of the previous enactments and the previous regulations as varied and supplemented by this Order.



Michael Neubert

Peter Lloyd

Two of the Lords Commissioners of Her Majesty's Treasury

9th March 1987




Notes:

[1] 1986 c. 53.

[2] 1962 c. 37.

[3] 1967 c. 31 N.I.).

[4] S.I. 1986/2168.

[5] S.I. 1983/1768.

[6] S.R. (N.I.) 1984 No. 334.

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