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Statutory Instrument 1993 No. 984

The Building Societies (Prescribed Contracts) Order 1993

(The document as of February, 2008)

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STATUTORY INSTRUMENTS

1993 No. 984

BUILDING SOCIETIES

The Building Societies (Prescribed Contracts) Order 1993

Made1st April 1993
Laid before Parliament2nd April 1993
Coming into force1st May 1993

    The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by section 23(2) and (4) of the Building Societies Act 1986[1], and of all other powers enabling it in that behalf, hereby makes the following Order:—
    Citation and commencement
        1.    This Order may be cited as the Building Societies (Prescribed Contracts) Order 1993 and shall come into force on 1st May 1993.
    Interpretation
        2.—(1)  In this Order—
      "the Act" means the Building Societies Act 1986,
      "interest" means, except where otherwise stated, any interest payable in respect of money including interest determined by reference to the fluctuations in the value or price of property of any description or in an index or other factor derived from such value or price,
      "participant" means a party to a prescribed contract to which a society is also a party,
      "prescribed contract" means an agreement or a series of agreements the terms of which are prescribed in Article 3,
      "security", except in Part IV of the Schedule hereto, means an asset which is of a character which societies may hold under section 21 (liquid assets) of the Act or which comprises rights under a prescribed contract whose terms include terms having the effect of the terms set out for forward and futures contracts in Part IV of the Schedule hereto, and
      "society" means a building society.


        (2)  Where reference is made in this Order to any matter within the terms of a prescribed contract being specified, that matter shall be treated for the purposes of this Order as so specified if it is specified or referred to within or can be implied from the terms of that contract, or if it is to be determined in a manner which is set out in that contract.
    Prescribed contracts
        3.    The following descriptions of contract are hereby prescribed for the purposes of section 23(1) of the Act, namely, an agreement or a series of agreements the terms of which include terms having the effect of—
       (a) the terms set out for swap contracts in Part I of the Schedule hereto,
       (b) the terms set out for option contracts in Part II of the Schedule hereto,
       (c) the terms set out for swap option contracts in Part III of the Schedule hereto, or
       (d) the terms set out for forward and futures contracts in Part IV of the Schedule hereto.
        4.    A society without a qualifying asset holding is hereby prescribed as a description of society under section 23(4) of the Act in relation to which it is hereby provided that section 23(3) of the Act shall not have effect as regards the exercise, by it, of the following powers which are hereby prescribed namely to effect contracts prescribed in paragraph 2 of Part I, in paragraph 2 of Part III and in paragraph 3 of Part IV of the Schedule hereto.
    Revocation of previous Orders
        5.    The Building Societies (Prescribed Contracts) Order 1988[2] and the Building Societies (Prescribed Contracts) (Amendment) Order 1991[3] are hereby revoked.
    Transitional provision
        6.    Nothing in this Order shall be taken to invalidate any contract effected by a society as a prescribed contract in accordance with any Order in force under section 23(2) of the Act at the time when the contract was effected.


In witness whereof the common seal of the Building Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on
1st April 1993.


Norman Digance

Secretary to the Commission

We consent to this Order

Irvine Patnick

Tim Wood

Two of the Lords Commissioners of Her Majesty's Treasury

1st April 1993




Notes:

[1] 1986 c. 53.

[2] S.I. 1988/1344, amended by S.I. 1991/2582.

[3] S.I. 1991/2582.2

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