Banking Act 2009

Building societies, &c. U.K.

84 Application of Part 1: general U.K.

This Part shall apply to building societies (within the meaning of section 119 of the Building Societies Act 1986) as it applies to banks, subject to the provisions of the Table.

Section	Topic	Modification or note
11	Private sector purchaser	A share transfer instrument may not be made.
13	Temporary public ownership	The procedure provided by section 85 has effect in place of share transfer orders.
14 to 32	Transfer of securities	The procedure provided by section 85 has effect in place of share transfer orders; and— (a) sections 28 and 30 do not apply, and (b) section 27 applies following an order under section 85 as following a share transfer order.
33	Property transfer instrument: nature	A property transfer instrument in respect of a building society may— (a) cancel shares in the building society; (b) confer rights and impose liabilities in place of cancelled shares (whether by way of actual or deemed shares in a transferee building society or by way of other rights and liabilities in relation to a transferee bank).
33 and 36	Property transfer instrument: continuity	A property transfer instrument in respect of a bank which provides for transfer to a building society may confer rights and impose liabilities by way of actual or deemed shares in the building society.
34	Property transfer instrument: effect	A property transfer instrument may, in particular, have effect without causing sections 93 to 102D of the Building Societies Act 1986 (mergers and transfers) to apply.
42	Supplemental property transfer instrument	A supplemental property transfer instrument in respect of a building society may— (a) cancel shares in the building society; (b) confer rights and impose liabilities in place of cancelled shares (whether by way of actual or deemed shares in a transferee building society or by way of other rights and liabilities in relation to a transferee bank).
45	Temporary public ownership: property transfer	(a) Section 45 applies following an order under section 85 as following a share transfer order. (b) A property transfer order in respect of a building society may cancel shares in the building society.
49 to 62	Compensation	(a) A reference to a share transfer order includes a reference to an order under section 85. (b) A resolution fund order may not be made under section 51(2)(b). (c) If and in so far as an order under section 85 provides for the issue of new deferred shares, section 51(2) shall not apply [F1 but the Treasury may make a third party compensation order ].
63 to 75	Incidental functions	A reference to a share transfer order includes a reference to an order under section 85.

Textual Amendments

F1 Words in s. 84 inserted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 21(5), 26(1)(f)

Commencement Information

I1 S. 84 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1

85 Temporary public ownership U.K.

(1) For the purpose of exercising the third stabilisation option in respect of a building society the Treasury may make one or more orders for the purposes of—

(a) arranging for deferred shares of a building society to be publicly owned,

(b) cancelling private membership rights in the building society,

(c) allowing the building society to continue in business while in public ownership, and

(d) eventually either winding up or dissolving the building society.

(2) For the purpose specified in subsection (1)(a) an order may—

(a) arrange for the transfer of existing deferred shares;

(b) provide for new deferred shares.

(3) For the purpose of arranging for the transfer of existing deferred shares an order may—

(a) provide for deferred shares to be transferred;

(b) make other provision for the purposes of, or in connection with, the transfer of deferred shares (whether or not the transfer has been or is to be effected by the order, by another order under this section or otherwise);

(c) relate to all or any specified class or description of deferred shares issued by the building society.

(4) For the purpose of providing for new deferred shares an order may—

(a) issue or allow the Treasury to issue new deferred shares on behalf of the building society;

(b) specify or allow the Treasury to specify the terms and effect of new deferred shares;

(c) specify or allow the Treasury to specify the recipient of new deferred shares.

(5) For the purpose specified in subsection (1)(b) an order may—

(a) cancel or permit the cancellation of shares (whether or not deferred) in the building society;

(b) confer rights and impose liabilities, or allow them to be conferred and imposed, in place of cancelled shares;

(c) prevent the issue or acquisition of shares in or other rights in respect of the building society otherwise than in accordance with the order.

(6) For the purpose specified in subsection (1)(c) an order may make any provision which the Treasury think desirable to facilitate the business of the building society after the making of provision in accordance with subsections (3) to (5).

(7) An order in respect of a building society may—

(a) make provision expressly or impliedly disapplying or modifying the memorandum or rules of the building society;

(b) disapply or modify an enactment about, or in its application to, building societies.

(8) The following sections apply to orders under this section as to share transfer orders: sections 17, 18, 20, 21, 22, 23, 25, 71, 72 and 73.

Commencement Information

I2 S. 85 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I3 S. 85 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1

86 Distribution of assets on dissolution or winding up U.K.

(1) The Treasury may by order make provision about the distribution of surplus assets of a building society which—

(a) is the subject of a property transfer instrument or order, and

(b) is later wound up or dissolved by consent.

(2) An order under section 85 may include provision about the distribution of surplus assets of the building society if it is later wound up or dissolved by consent.

(3) “Surplus” means remaining after the satisfaction of liabilities to creditors and shareholders.

(4) An order under or by virtue of this section—

(a) may include any provision of a kind that may be made by order under section 90B of the Building Societies Act 1986 (power to alter priorities on dissolution or winding up),

(b) may be made whether or not the power under that section has been exercised, and

(c) shall be treated for all procedural purposes in the same way as an order under that section.

Commencement Information

I4 S. 86 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I5 S. 86 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1

87 Interpretation U.K.

(1) Expressions used in this group of sections and in the Building Societies Act 1986 have the same meaning in this group of sections as in that Act.

(2) An order under section 119(1) of that Act defining “deferred shares”—

(a) may make special provision for the meaning of that expression in the application of this group of sections, and

(b) shall otherwise apply to this group of sections as to that Act.

Commencement Information

I6 S. 87 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I7 S. 87 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1

88 Consequential provision U.K.

(1) The Treasury may by order make provision, in addition to the provisions of this group of sections, in consequence of the application of this Part to building societies.

(2) An order may, in particular, amend or modify the effect of an enactment (including a fiscal enactment) passed before the commencement of this Part.

(3) An order—

(a) shall be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

Commencement Information

I8 S. 88 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I9 S. 88 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1

89 Credit unions U.K.

(1) The Treasury may by order provide for the application of this Part to credit unions (within the meaning of section 31 of the Credit Unions Act 1979) subject to modifications set out in the order.

(2) An order may disapply, modify or apply (with or without modifications) any enactment which relates, or in so far as it relates, to credit unions.

(3) An order—

(a) shall be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(4) Provision made under or by virtue of this Part may make special provision in relation to the application of this Part to credit unions.

(5) In the application of this section to Northern Ireland the reference to section 31 of the Credit Unions Act 1979 is to be treated as a reference to Article 2 of the Credit Unions (Northern Ireland) Order 1985.

Commencement Information

I10 S. 89 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I11 S. 89 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1