Statutory Instrument 1995 No. 550

The Building Societies (Liquid Asset) (Amendment) Regulations 1995

---

© Crown Copyright 1995

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Building Societies (Liquid Asset) (Amendment) Regulations 1995, ISBN 011052800X. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1995 No. 550

BUILDING SOCIETIES

The Building Societies (Liquid Asset) (Amendment) Regulations 1995

The Building Societies Commission, with the consent of the Treasury, in exercise of the power conferred on it by section 21(7) of the Building Societies Act 1986^[1], hereby makes the following Regulations:

Citation and commencement
    1.    These Regulations may be cited as the Building Societies (Liquid Asset) (Amendment) Regulations 1995 and shall come into force on 1st April 1995.

Amendment of principal Regulations
    2.    The Schedule to the Building Societies (Liquid Asset) Regulations 1991^[2] shall be amended—
 (a) by the substitution in paragraph 1 of Part II of the words "paragraph 2(a) or (c) or 3(1)" for the words "paragraphs 2(a) or (c), 3(1)(a)"; and
 (b) by the substitution in Part III of the following for paragraph (ii) of the definition of "mortgage backed securities"—
"(ii) securities which are guaranteed, in respect of the timely repayment of principal and timely payment of interest, by the Government National Mortgage Association of the United States of America, the Federal National Mortgage Association of the United States of America or the Federal Home Loan Mortgage Corporation of the United States of America;" .

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


T. Matthews

A member of the Commission

16th February 1995.
We consent to these Regulations

T. Kirkhope

A. Mitchell

Two of the Lords Commissioners of Her Majesty's Treasury

2nd March 1995

These Regulations amend the Building Societies (Liquid Asset) Regulations 1991. First the existing Regulations provide (in paragraph 1 of Part II of the Schedule) that a deposit with a gilt-edged market maker or a Stock Exchange money broker, or a stock lending right against such a broker, is a liquid asset only where the deposit is secured by the transfer to the society of certain liquid assets which in the case of securities must be of the kind mentioned in paragraph 3(1)(a) of Part I of the Schedule (certain government securities). These Regulations extend the category of permitted security instruments to include the other types of securities mentioned in paragraph 3(1) (those issued by EC credit institutions, certain international organisations and local and other authorities). Secondly these Regulations add to the definition of "mortgage backed securities" in Part III of the Schedule securities guaranteed (as to the timely repayment of principal and payment of interest) by the Federal National Mortgage Association of the United States of America (known as "Fannie Mae") or the Federal Home Loan Mortgage Corporation of the United States of America (known as "Freddie Mac").

A review of the cost of compliance with these Regulations has been undertaken and the resulting compliance cost assessment may be purchased from the Secretary, Building Societies Commission, 15 Great Marlborough Street, London W1V 2LL.

[1] 1986 c. 53. back

[2] S.I. 1991/2580 amended by S.I. 1992/2930. back